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View Full Version : Biggest U.S. tax hike on tobacco takes effect


Wigglytuff
Apr 2nd, 2009, 06:23 PM
http://www.usatoday.com/money/perfi/taxes/2009-03-31-cigarettetax_N.htm
:yeah: :yeah: :banana: :rocker:

Biggest U.S. tax hike on tobacco takes effect
By Wendy Koch, USA TODAY

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."

The increases, which raise the federal cigarette tax from 39 cents a pack to $1.01, applies to all tobacco products. It comes as more than two dozen states, desperate for revenue in a sunken economy, consider boosting their own tobacco taxes this year.

"This is very historic," said Matthew McKenna, director of the Office of Smoking and Health at the Centers for Disease Control and Prevention.

Before the tax hike, cigarette prices averaged about $5 a pack. Now, tobacco companies are raising prices by different amounts. Some are absorbing part of the increase; others are raising prices more.

In the past, a 10% price increase reduced cigarette consumption about 4%, McKenna said. He expects the federal tax hike to prompt at least 1 million of the 45 million adult smokers to kick the habit.

"We expect this to accelerate the decline" in cigarette consumption, said Bill Phelps, spokesman for Philip Morris USA, the nation's largest tobacco company. He said consumption has been dropping 3% annually for a decade. "Some people may quit smoking," he said. "Others may cut back."

Nik Modi, a tobacco industry analyst at UBS, expects cigarette consumption to drop by about 9% annually. Tobacco companies won't be badly hurt, he said, because they've prepared for the increase.

Last month, companies began raising prices to cover the tax increase. Marlboro maker Philip Morris raised prices by at least 71 cents a pack. R.J. Reynolds, maker of Camel, did so by at least 42 cents.

Congress passed legislation last year raising the tax to fund the State Children's Health Insurance Program, but former president George W. Bush vetoed it. In February, President Obama, who has struggled to quit smoking, signed a new version.

Even tobacco-growing states such as North Carolina are considering increases. Two states, Arkansas and Kentucky, doubled their taxes this year.

The federal increase "will fall on those who can least afford it," said Frank Lester, spokesman for Reynolds American. He said one in four smokers live at or below the poverty line.

"More lower-income people than higher-income people will quit" because they cannot afford the tax hike, said Eric Lindblom of the Campaign for Tobacco-Free Kids.


:banana: :rocker: :banana: :rocker: :yippee: :yeah:

Wigglytuff
Apr 2nd, 2009, 06:27 PM
this is great news not only does this add much needed revenue to the coffers it has the added benefit of potential lowering health costs in the future for low income smokers who will be forced to quit.

this is a win-win for everyone if ever there was one.

great move :yeah: :yeah: :yeah:

saint2
Apr 2nd, 2009, 06:33 PM
AMAZING, how government could solve problems...:rolleyes::rolleyes:
That "tax hikes on tobbaco" are ruining my pocket...Obama IS a chain smoker, same as mine president. But they can afford it. What mere people are supossed to do ?

~CANUCK~
Apr 2nd, 2009, 08:30 PM
AMAZING, how government could solve problems...:rolleyes::rolleyes:
That "tax hikes on tobbaco" are ruining my pocket...Obama IS a chain smoker, same as mine president. But they can afford it. What mere people are supossed to do ?

Quit?

PointBlank
Apr 2nd, 2009, 08:38 PM
i bought two cartons the day before the tax increase. im set for a bit, but not looking foward to paying again.

saint2
Apr 2nd, 2009, 08:58 PM
Quit?

I don't want to quit. I don't smoke that much, I can control myself, but price of cigs is getting higher and higher that I consider to buy it from grey zone...:rolleyes::rolleyes:

kris719
Apr 2nd, 2009, 09:22 PM
I generally don't like limiting someone else's activities- they can do whatever the hell they want as long as it doesn't bother me. however, if this gets just a few people to quit such a horrible activity I'm not going to object too much.

Monica_Rules
Apr 2nd, 2009, 10:39 PM
I still don't understand why anyone with half a brain even ,still smokes.

raffles
Apr 2nd, 2009, 10:58 PM
I still don't understand why anyone with half a brain even ,still smokes.
Me neither, glad you can't even smoke in a bus shelter in Britain now. Remember when it was allowed on planes. I once couldn't get a seat in the non-smoking section of the plane, what a horrible flight that was.

kris719
Apr 3rd, 2009, 03:11 AM
Me neither, glad you can't even smoke in a bus shelter in Britain now. Remember when it was allowed on planes. I once couldn't get a seat in the non-smoking section of the plane, what a horrible flight that was.

i can not believe that this existed once. ridiculous, an enclosed space and people all around you start lighting up. glad i never had to deal with that.

dementieva's fan
Apr 3rd, 2009, 05:16 AM
AMAZING, how government could solve problems...:rolleyes::rolleyes:
That "tax hikes on tobbaco" are ruining my pocket...Obama IS a chain smoker, same as mine president. But they can afford it. What mere people are supossed to do ?

boo fucking hoo :rolleyes: Cry me a river :rolleyes: I'd like to have an expensive car, why does the government have to price it so high?:rolleyes:

Rollo
Apr 3rd, 2009, 08:31 AM
It might add revenue and get people to quit. It might also drive more people to buy cigarettes from the black market and cost the goverment revenue.

I guess we'll see.

Wigglytuff
Apr 3rd, 2009, 02:45 PM
It might add revenue and get people to quit. It might also drive more people to buy cigarettes from the black market and cost the goverment revenue.

I guess we'll see.

there will always be people who will use excesses to break the law no matter what.

you know there are plenty of americans who illegally buy and less moonshine made in mass to avoid taxes. as if it is a cheap beer and booze is all that expensive. you can get a well made purse for $10 but people will willing and happily $100 for one made be terrorists with child labor and human trafficking. the only thing to do in those cases is education, coupled with severe and swift enforcement of the law.

LeonHart
Apr 3rd, 2009, 04:19 PM
Good. I despise smokers that smoke in public. It's bad enough they're harming their own health by choice, but then to go to a public place and harm multiple people's health is ridiculous. Tax em to hell.

saint2
Apr 3rd, 2009, 04:25 PM
Good. I despise smokers that smoke in public. It's bad enough they're harming their own health by choice, but then to go to a public place and harm multiple people's health is ridiculous. Tax em to hell.

Yeah, like its Your buisness what Im doing with my lungs...

Time to play rock'n'roll...

http://www.youtube.com/watch?v=Maz9ddxEQnM&feature=related

raffles
Apr 3rd, 2009, 04:28 PM
Good. I despise smokers that smoke in public. It's bad enough they're harming their own health by choice, but then to go to a public place and harm multiple people's health is ridiculous. Tax em to hell.

I know it used to put me off my food. It's so shocking when I go outside of the UK and there I am sitting eating lunch and some damn person smelly smoke starts wafting over towards me. Nasty.

kris719
Apr 3rd, 2009, 11:31 PM
Yeah, like its Your buisness what Im doing with my lungs...


it's my business what you're doing to my lungs.

LeonHart
Apr 4th, 2009, 12:06 AM
Yeah, like its Your buisness what Im doing with my lungs...

Time to play rock'n'roll...

http://www.youtube.com/watch?v=Maz9ddxEQnM&feature=related

I could care less when you die of lung cancer. However keep your death wish to yourself.

moby
Apr 4th, 2009, 04:31 AM
I hate smokers and smoking. But while I sure hope that a tax hike will stop smokers from smoking, I'm not naive: nicotine is a drug, you build up dependence on it. Hardcore smokers, whichever societal strata they may come from, will either find other means of getting their fix from the underground market, or shell out more money. High costs have rarely deterred "addicts" from other drugs, so why should this be different?

This is just another plan to gain more revenue, and not a bad one. I'm just opposed to it being masqueraded as some moral or health campaign. :lol:

saint2
Apr 4th, 2009, 08:38 AM
I could care less when you die of lung cancer. However keep your death wish to yourself.

OK, but has it anything common with taxing it ?