Tobacco Tax: Opportune time? Bad Economy, can't afford to smoke - quit, go nuts , civil unrest/riot.....

[link to www.usatoday.com]

WASHINGTON — For the estimated 20% of Americans who smoke cigarettes, the impact of a federal excise tax increase that takes effect Wednesday is already being felt.
Earlier this month the manufacturer of Marlboro, Parliament and Virginia Slims, Philip Morris USA, increased prices by 71 cents a pack, 9 cents more than the federal tax increase. The maker of Camel, Kool and Salem cigarettes, R.J. Reynolds Tobacco, bumped wholesale prices up by 44 cents a pack and reduced discounting.

The revenue from the tax increase, which will be used to expand coverage under the State Children's Health Insurance Program to an additional 4 million low-income children, was signed into law in February.

It calls for a 62-cents-a-pack increase, to $1.01, in federal excise taxes on cigarettes for the nation's estimated 45 million cigarette smokers as well as increases in taxes on little cigars, cigars, and pipe and chewing tobacco.

The higher prices should have the positive effect of reducing teenage smoking, according to Dr. Jonathan Klein, a professor of pediatrics at the University of Rochester.

FIND MORE STORIES IN: New York City | Parliament | Long Island | Mom | Salem | Health Insurance Program | Yonkers | Philip Morris USA | University of Rochester | Marlboro | Empire State | Kool | Scarsdale | Camel | Health Fund | Virginia Slims | Department of Taxation | Campaign for Tobacco Free Kids | Tom Bergin | International Premium Cigar | Pipe Retailers Association
"There's very good evidence that adolescents are the most price-sensitive," Klein said.

New York state, which has among the highest tobacco tax rates in the nation, has seen a decline in teenage smoking. States with lower taxes have not, Klein said.

Last year the state increased its tax on cigarettes by $1.25, from $1.50 to $2.75 per pack.

New York also imposes a 4% state sales taxes on tobacco products, said Tom Bergin, spokesman for the state Department of Taxation and Finance. Local sales taxes push up the overall sales tax to more than 8% in Yonkers and New York City and on Long Island.

But the biggest impact is expected to be hundreds of miles away from the Empire State, where tobacco taxes are low. South Carolina has the nation's lowest tax on cigarettes — 7 cents a pack. Missouri imposes a 17-cents-a-pack tax.

The current average among the states is $1.19 a pack, according to Eric Lindbloom, director of policy research for the Campaign for Tobacco Free Kids.

Dr. Irwin Redlener, president of the Children's Health Fund in New York City, predicts that adult smokers who are economically "onthe edge" also may quit.

"Given the economic climate that we are in ... a new tax may be the final incentive to get them to stop smoking," Redlener said.

But Redlender said he dislikes the fact that the tax increase was used to finance an expansion of the State Children's Health Insurance Program under legislation signed into law in February.

"I don't want to see our health coverage of children dependent on this," said Redlender, who said he would prefer to see the expanded coverage paid for from the federal government's general revenue.

The Campaign for Tobacco Free Kids is hailing the fact that the tax increase will equalize the way that small cigars, which are increasing in popularity, are taxed.

"They really are cigarettes pretending to be little cigars so you can pay less tax," Lindbloom said. "This is a problem nationwide. It's a problem with state tax rates. It's a big deal because cigarette sales have been going down, but little cigar sales have been going up."

The federal tax on little cigars is currently 3.7 cents per pack of 20, while a pack of cigarettes is taxed 39 cents.

Come Wednesday, both types will be taxed $1.01 a pack.Likewise, the tax on roll-your-own tobacco was 4.5 cents per pack and will increase to $1.01.

Smaller tax increases will be imposed on large cigars and chewing tobacco, which will be taxed at 11.3 cents a can.

The International Premium Cigar and Pipe Retailers Association predicts that the nation's estimated 12 million cigar smokers and 1.2 million pipe smokers will trade down to less-expensive blends.

The average cigar smoker smokes only two cigars a week, said Joe Rowe, the group's executive director.

"I suspect pipe smokers will continue to buy pipe tobacco and smoke," Rowe said. "Pipe tobacco has been declining for years, and it's a choice and not habit."

Frank Cervone, store manager of Mom's Cigar in Scarsdale, agreed.

"They are probably not going to stop smoking but go to a lower-priced cigar," said Cervone, whose store sells premium cigars for $4 to $12.50 each.

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Biggest U.S. tax hike on tobacco takes effect

[link to www.usatoday.com]

Smokers are gasping at higher cigarette and cigar prices as the largest federal tobacco tax increase in history takes effect.
"Oh my gosh," Bernardo Torres said Tuesday when a clerk at a CVS Pharmacy in Falls Church, Va., told him the new price, which went up in anticipation of the tax increase. Torres wanted to buy his aunt two cartons of cigarette-size cigars, but he walked away empty-handed after hearing the new price: $134. The tax on little cigars went from 4 cents to $1.01 a pack.


BY STATE: Cigarette taxes per pack

"I don't know what to do. This is going to hit her hard," Torres said of his disabled aunt, 64, a heavy smoker who won't quit.

"I'm going to quit," said Will Hues, 27, smoking a cigarette outside the store. He said prices have gone up so much that "you're out of your mind to pay it."

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Single Largest Federal Tobacco Tax Increase
[link to www.courant.com]

Today, the federal excise tax on every pack of cigarettes will jump from 39 cents to $1.01, the single largest federal tobacco tax increase ever. In Connecticut yesterday a pack of Marlboro Lights cost $5.99 plus tax at Smoker's Discount World, a carton of the same costs $58.99 plus tax.

The hike will seem higher in states that already have high taxes, such as New York, where a pack goes now for around $10 - 50 cents for a single smoke.

Cigars, chewing tobacco and pipe tobacco also will see large federal tax increases.

In the last two months, most major tobacco companies, including R.J. Reynolds and the Altria Group, the owner of Philip Morris USA, already have heaped hefty increases onto the prices of their products - making it likely smokers already have inhaled their biggest sticker shock.

The tax revenue, about $32.8 billion over the next 4.5 years, will be used to expand the federally-funded State Children's Health Insurance Program. The program gives money to states to provide coverage to children from families too well-off to receive Medicaid, but too poor to afford private insurance.

Smoking has declined steadily in the U.S., from about 25 percent of the adult population a decade ago to 20 percent today.

Yikes!!!! I'm doomed!!!!!!!

.

me and about a hundred other people went to the local smoke shop yesterday and stocked up for a bit LOL Got 4 cartons for $12 each........should keep the hubby happy for this month anyway

here its like 45-55$ per well that was yesterday.

I hope no one pays those prices, I'm not. Its nothing but robbery. I will quit and if enough people quit they will loose a lot of money and come back down to a reasonable price. They are nothing but robbing scumbags.

if you cant afford to smoke, id have to agree. theres gonna be alotta agitated ppl starting today.

Will just create more of a market for home grown tobacco.
Which of course if people sell, is illegal.
But if they use it for themselves its not.
It proves that tobacco was always just a cash cow for the government.
Once people are addicted, the new taxes are almost a sure thing.They know people will pay it.
The fact the government make money from peoples deaths, really says what they stand for doesn't it?

in places like NJ/NY they already were. here too.

now with the hike...we're going to see ppl quitting by default bc they cant afford to smoke any longer and we're also gonna see an increase in adverse behavior.

i wondered why the gov who makes money on the tobacco industry would do this knowing that ppl couldnt afford it. the thread title is applicable - its suspect to have such an increase amidst this economic decay.

now im wondering how long before they ban growing your own??

Learn to dip . . .

There will be an increase in the murder rate. Nicotine addicts who are force to withdraw have much shorter fuses. You can expect to see an increase in shootings, stabbings and defenestration, and other sudden impulse attacks. You may also see an increase in motor accidents, and impulsive use of the vehicle as a weapon.

its all tobacco if youre referring to snuff.

precisely my point.

it is time to open a black market for cigarettes and make some good $$$$. Could do the same with ammo.. LOL


psst hey buddy I got some marlboro and camels here really cheap ..

Last Edited by Nailer45 on 04/01/2009 06:46 AM

pretty soon cigarettes will be more expensive than pot.

Our Government is taxing us to death and if it is not cigarettes it is gas or some stupid tax .

surprised that obama or some stupid politician has not come up with a oxygen useage tax/fee.

Last Edited by Nailer45 on 04/01/2009 06:51 AM

Yes this is correct. As your society becomes more and more socialist, with more taxation and regulation of all sorts, there will be an increase in corruption, black marketing and under the counter sales. If you believe in a free society, then it will be patriotic to do these things. Sadly as witnessed by the US experiment with alcohol prohibition, the black markets will become gangsterized and there will then be an increase in murder and all other crimes as well.

i saw a post on another page where this guy recalls a scene from the movie goodfellas where they hijack a truck. he said we might be seeing some of this happening in certain areas if it escalates.

Not looking forward to withdrawals - but I also can't afford to smoke anymore. My last cig was last night at 8:30pm. Woke up a half hour ago and put on a Nicotine patch. I am missing my morning cig already. This sucks.

How much are cigs in Canada?

And Mexico?

Wow I already have all them symptoms and I haven't quit yet

We roll our own cigs and the price for a bag of tobacco went up 7 bucks about two weeks ago with the remaining tax to take effect today. I think the this is so WRONG! If they are going to tax one sin (tobacco) so outrageously, why are they not going across the board and taxing ALL items equally... Liquor, Beer, Gambling, etc....

AND.... MORE IMPORTANTLY... how can they get away with this gouging? I don't think that "quitting" is an answer as some people have stated... There has to be another way...

Last Edited by Krysalis on 04/01/2009 07:27 AM

LOL.... THAT is exactly what I thought when going through the list!!!!! SMILES AND WAVES!

I used to say I would quit when they went to $5 a pack here (Canada/Manitoba).............then I said I would quit when it went to $7 a pack........then I said it at $10 a pack..........and sadly I continue smoking at $13 per pack.

My wife has actually begged me to go back smoking when I have tried to quit. I AM the most insane individual when that nicotine is not rushing through my brain. I have tried almost every single method. I need to be locked into a padded room for about 3 months if I am to quit smoking. I guess that is what you get for smoking 30 years of your life.

I still like coming over the border and picking up smokes for about half the price (duty free).

When does the liquor get hit?????? I pay almost $40 for 24 cans of beer here. I know you guys have to be wondering when your liquor gets hit.

This really hurts on a fixed income. However, I laid back a year's worth of bulk. You think per pack/carton tax is bad? They KNEW folks would move to making their own (injector) so they added $24.64 tax PER POUND to bulk. The TOTAL price, pre-tax increase was $11.75 per pound. That little increase raised the total price over 300% ~ Now, over 80% of the cost is purely TAX. And of course, they are also increasing the tax on the tubes.

Chains we knew we could believe in...

:DJokoolaid:

24 a pound? holy shit !!!!

i hope it will work for you. i hear the patch is bullshit.

We paid $20 per pound and almost overnight (roughly 5 years ago estimate) it shot to $78 for the same product. With tubes still running at $80 per 200. Carton is depending on what you smoke runs from $74 (crap smokes) - $90 per carton (premium smokes) 200 smokes.

It does hurt a fixed income. Remember though only those who make $250k or over are going to be taxed by Giggles the Clown. I have put up with the same shit in Canada for years. Watching this same crap unfold. Fluoride is high here and sheeple continue to believe in the sociopaths that fool the show.

It should be illegal to target a specific segment of the population (such a smokers) with a tax. Such a tool can be used to strip individual freedoms.

What if the gooberment specifically targeted tampons?

What if the gooberment specifically targeted aftershave?

What if the gooberment specifically targeted kosher foods?

What if the gooberment specifically targeted rice?

point made point taken....it wouldnt surprise me any of they did target beyond the classes.