Biggest U.S. tax hike on tobacco takes effect

[Arjun]

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.


source:http://www.usatoday.com/money/perfi/...rettetax_N.htm

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I believe this is the right thing to do because

1) This would encourage smokers to Quit(statistical evidence supports this)

2) This would reduce the tens of BILLIONS of Taxpayer $ wasted each year treating tobacco related illnesses

3) Will Drastically reduce new smokers, especially amongst teens because of the far higher price/cig pack

4) Reduce second hand smoke related illnesses caused to non smokers



This is an awesome Bill and Im really glad that president Obama went through with this.


Three Cheers for a future nation that's far more healthier

[Admiral Piett]

Taxing the hell out of will dissuade new smokers but victimize those that do and make their condition that much worse.

You DO NOT PASS LEGISLATION BENEFITING ONE GROUP AT THE EXPENSE OF ANOTHER.

Absolutely against.

[Arjun]

Taxing the hell out of will dissuade new smokers but victimize those that do and make their condition that much worse.

You DO NOT PASS LEGISLATION BENEFITING ONE GROUP AT THE EXPENSE OF ANOTHER.

Absolutely against.

I agree with the victimizing one group part; but it seems that the tobacco tax was not really increased from 1977. so maybe this tax was only trying to rectify that mistake? maybe the blame for this big increase should be laid on the door of governments that did not tax tobacco the same way other stuff were taxed...resulting in this current seemingly huge tax increase.

[Admiral Piett]

I agree with the victimizing one group part; but it seems that the tobacco tax was not really increased from 1977. so maybe this tax was only trying to rectify that mistake?

A mistake because we haven't punished them enough?

[Arjun]

A mistake because we haven't punished them enough?

? nah i was saying that the taxing of tobacco was not in par with the taxing of other products.

[Admiral Piett]

? nah i was saying that the taxing of tobacco was not in par with the taxing of other products.

Are you sure? I seem to remember tax increases just a few years ago. It may have been on the state level.

[Quadratus]

Who didn't see this coming?

I know I did.

HELL NO. Any Tax Raise, NO, I am against.

We need another Boston Tea Party.

[Panzerbear]

Who didn't see this coming?

I know I did.

HELL NO. Any Tax Raise, NO, I am against.

We need another Boston Tea Party.

I absolutely agree. Obama administration lied to us all again. they were talking about raising taxes only on $250K+ folks, but now they are raising taxes on EVERYONE with their tobacco tax.

but oh well, its liberals, so what the hell did we expect...

I guarantee you that they will also raise taxes on new cars, gas, alcohol, weapons and ammunition, and so on and so forth. they will also jack up our electric bills in order for us to be "green". just wait and ing see.

PS: I, for once, actually enjoy to a cigar or two during warm summer nights in a group of close friends. keep your hands off tobaco and my wallet, you shameless commies!!!

[Clouse123456]

I absolutely agree. Obama administration lied to us all again. they were talking about raising taxes only on $250K+ folks, but now they are raising taxes on EVERYONE with their tobacco tax.

but oh well, its liberals, so what the hell did we expect...

I guarantee you that they will also raise taxes on new cars, gas, alcohol, weapons and ammunition, and so on and so forth. they will also jack up our electric bills in order for us to be "green". just wait and ing see.

PS: I, for once, actually enjoy to a cigar or two during warm summer nights in a group of close friends. keep your hands off tobaco and my wallet, you shameless commies!!!

I agree with on almost everything except the energy costs.I dont think the liberals would go that far.They would totaly be controlling our lives if they did.
Btw Liberals shouldnt be called liberals they stole that word.

[TomTheSaint]

Who didn't see this coming?

I know I did.

HELL NO. Any Tax Raise, NO, I am against.

We need another Boston Tea Party.

Taxes are a necessary evil. Even Reagan raised taxes after his first year in office. In fact, he enacted some of the largest increases of the century as he simultaneously expanded the deficit.

People like to say "Tax and spend liberal" but it is more like "Tax and spend realist".

[Bongfu]

I am against it because that means shisha prices will go up, and its already as expensive as .

[Sidmen]

I disagree with sin taxes in all their forms. Man up and increase the income tax across the board if you want to increase revenues.

[Bongfu]

Im just one of those people who does not believe smoking is an automatic death sentence. Plenty of people in my family have smoked since a young age and they have healthy, productive lives. My mom has smoked shisha since she was about fifteen, and I have been smoking it since I old enough to pick up the hose. My lungs are fine, hell I used to play soccer, and lacross in school. I never had shortage of breath

[Quadratus]

Im just one of those people who does not believe smoking is an automatic death sentence. Plenty of people in my family have smoked since a young age and they have healthy, productive lives. My mom has smoked shisha since she was about fifteen, and I have been smoking it since I old enough to pick up the hose. My lungs are fine, hell I used to play soccer, and lacross in school. I never had shortage of breath

You might feel fine, but when your old, like elderly old, your lungs look like this:

[Bongfu]

You might feel fine, but when your old, like elderly old, your lungs look like this:

Oh well, as long as I am old, I wont give a damn

tobacco affects people different people differently..there is not "set" result of smoking that could be expected from every smoker...but more and more negative side effects of it are being found every year.....the most dangerous one is that it reduces the lifespan of the smoker....maybe by 5 years..maybe less/more...but it sure does.


Dna damage or mutations might occur too...apart from the usual side effects of cancer,impotence...etc etc....hence affecting future generations

I mean, I am not denying the affects, but a lot of people that I have seen with smoking related issues also had other issues, like poor diets, obesity, diseases, prediagnosed lung aliments.

[Arjun]

Oh well, as long as I am old, I wont give a damn

that is like procrastinating till a couple of days from exam date and then yearning for an extra day!

[Admiral Piett]

Oh well, as long as I am old, I wont give a damn




I mean, I am not denying the affects, but a lot of people that I have seen with smoking related issues also had other issues, like poor diets, obesity, diseases, prediagnosed lung aliments.

QFT.

Also, the more we try to regulate what people do with their own bodies, the less free we will be.

[Bongfu]

QFT.

Also, the more we try to regulate what people do with their own bodies, the less free we will be.

exactly...

If I want to smoke and turn my lungs black, then by Thor's beard I will do it damnit!

[Arjun]

Im just one of those people who does not believe smoking is an automatic death sentence. Plenty of people in my family have smoked since a young age and they have healthy, productive lives. My mom has smoked shisha since she was about fifteen, and I have been smoking it since I old enough to pick up the hose. My lungs are fine, hell I used to play soccer, and lacross in school. I never had shortage of breath

tobacco affects people different people differently..there is not "set" result of smoking that could be expected from every smoker...but more and more negative side effects of it are being found every year.....the most dangerous one is that it reduces the lifespan of the smoker....maybe by 5 years..maybe less/more...but it sure does.


Dna damage or mutations might occur too...apart from the usual side effects of cancer,impotence...etc etc....hence affecting future generations

[bushbush]

to Bongfu....lung cancer is extremely painful...my grandfather died of lung cancer. I can tell you it's a very ugly and tragic disease. Just quit the damn thing. Smoking is already proven to be a deadly way of life.