Napoli says problem is looming due to lower tobacco sales

Rapid City Journal ^ | 16 Apr 07

[rellimpank]

RAPID CITY -- A big problem is looming for state government, and it all stems from rapidly falling sales of tobacco products, according to state Sen. Bill Napoli, R-Rapid City.

Effective Jan. 1, the state tax increased by $1 for a 20-stick pack of cigarettes and by $1.25 for a 25-cigarette pack. The tax on all other items, such as cigars and chewing tobacco, jumped

[bfree]

Funny, everyone with a brain knew this would happen. Unfortunately, the do gooders are lacking a brain.

[sgtbono2002]

People here in Southern Maryland cross the bridge at Morgantown to buy cigarettes and gasoline. Governor Glendenning doubled the bridge toll to stop it,but even with a double toll a moderate smoker that doesnt live too far from the bridge can save about $20.00 with a once a week trip.

The Morgantown bridge is about 2 miles long and has been built since 1938 and yet the toll on it is 50 cents higher han the 6 mile bay bridge. Just because they are trying to tax the smokers again by raising the toll.

[Waco]

It’s not the $$$, it’s the “feel good”. (ya wantted some one f—
ked, congratulations! Your it.)

[Just another Joe]

BWAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!

There will come a time when taxes are raised across the board because the "sin" taxes have done their job and made people either quit or turn to nontaxable sources, and THEN we will hear the anti-smokers squeal like the pigs they are.

[Wyatt's Torch]

“Who did not see this coming?”

The same government idiots who think people behaviors don’t change when taxes do...i.e. tax cuts cost revenue.

[fooman]

now they will have to raise rates on income and property taxes, so these programs can be funded.

and the voters thought the other guy was going to be taxed!

[Vinomori]

Was there no reduction in medical costs? How come?

OBESITY epidemic!

[-YYZ-]

Why don’t they raise the taxes even more? That should solve the problem. </sarc>

[Living Free in NH]

But they’re saving money by the bucketfulls in healthcare expenses, right???

Except that all of the new non-smokers are now getting fat and will need bariatric surgery at $40,000 each.

Here comes the Twinkee Tax.

[SheLion]

Just check out how much Michigan is losing or going to lose since they want to ban smokers and tobacco so much!  The lawmakers can't have both.  

Michigan Information

Tobacco Taxes

Michigan's excise tax per pack of cigarettes: $2.000
Michigan's excise tax collection for the
fiscal year ending June 2002: $584,605,000

Sales tax on tobacco products: 6.00%

Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
--------------------------------------------------------------------------------

Comparing Excise Taxes on Cigarettes, Beer and Wine

Number of six-packs of beer that must be sold in Michigan to produce the same state excise tax revenue generated by one carton of cigarettes: 66.7

Number of bottles of wine that must be sold in Michigan to produce the same state excise tax revenue generated by one carton of cigarettes: 74.2

--------------------------------------------------------------------------------

Michigan Smokers' Contributions to the State Economy - FY2003

In 2002, Michigan smokers comprise only 24.2%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:

Smokers Pay Excise Taxes2
$ 828,678,000


Smokers Pay Sales Taxes2
$ 151,785,000

Smokers Pay Tobacco Settlement Payments3
$ 317,444,000

TOTAL $ 1,297,907,000

Just check out how much Michigan is losing or going to lose since they want to ban smokers and tobacco so much!  The lawmakers can't have both.  

Michigan Information

Tobacco Taxes

Michigan's excise tax per pack of cigarettes: $2.000
Michigan's excise tax collection for the
fiscal year ending June 2002: $584,605,000

Sales tax on tobacco products: 6.00%

Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
--------------------------------------------------------------------------------

Comparing Excise Taxes on Cigarettes, Beer and Wine

Number of six-packs of beer that must be sold in Michigan to produce the same state excise tax revenue generated by one carton of cigarettes: 66.7

Number of bottles of wine that must be sold in Michigan to produce the same state excise tax revenue generated by one carton of cigarettes: 74.2

--------------------------------------------------------------------------------

Michigan Smokers' Contributions to the State Economy - FY2003

In 2002, Michigan smokers comprise only 24.2%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:

Smokers Pay Excise Taxes2
$ 828,678,000


Smokers Pay Sales Taxes2
$ 151,785,000

Smokers Pay Tobacco Settlement Payments3
$ 317,444,000

TOTAL $ 1,297,907,000

[jerry639]

Who did not see this coming?

Few. Only rabid antis that were in denial.

Several here on FR have been telling them what would happen if the states lost revenue from tobacco sales. The joke is really on the antis because many smokers have found ways to get around paying the tax increases. Those that want to smoke will continue to do so and there is no way to stop them from doing it.

Now we will see what government taxes to make up for the loss of tobacco taxes.

[Kenny Bunk]

We take you back to those thrilling days of yesteryear: Russia, 1914
The Czar bans vodka drinking. "Yo we gotta war on, we gotta be serious. No more drinking. Ya got that?"

Unfortunately, the tax on vodka was the Czarist Government's major source of income. Things went downhell from there.

[ellery]

I hae long thought that the state governments were becoming so addicted to tobacco tax money that when people started to quit in enough numbers they would start ad campaigns to encourage smoking to keep up revenue.

Nah, they'll just make up their shortfalls from other "sinners." Next up: new taxes on foods that contain transfats. On deck: new taxes on those who drive more than x number of miles.

[Sunshine Sister]

But that’s what they wanted!

[HoosierHawk]

Nice job. Thanks.

[Eric Blair 2084]

I’m sure I’m not coming down off the mountain with the tablets here and the thought has occurred to all of us...

Somebody else is going to be REALLY, REALLY PISSED at the end of the day.

Smokers are already REALLY, REALLY PISSED that we are persecuted, shamed, and dehumanized in the name of the “public good”.

File this under Schadenfreude. Flip a coin, and unless it lands on its side, you can guarantee that one of 2 things will happen as a result of the Tobacco Control experiment:

They ban smoking everywhere and raise cigarette taxes in order to coerce smokers to quit. Whatever the result, some smug people will get their comeuppance. Either:

A. The TC experiment is successful and smoking rates drop from 25% to below the 10% goal of TC advocates...in which case the stupid part time State legislators/Realtors and their state treasury will see a huge decline in revenue due to all of the smokers who quit. The tobacco revenue bonds that were floated and the programs that relied on tobacco revenue will be sucking wind and they will have to raid the teacher’s pension fund to come up with the money. The state will be REALLY, REALLY PISSED (they thought asking smokers to fork over an extra buck or step outside for a smoke was about public health and golly gee, lives would be saved)Or

B. The Social Engineering experiment fails and smoking rates do not decline. In which case the Tobacco Control people will be REALLY, REALLY PISSED. They couldn’t care less whether people are annoyed by smoke and they know damn well their SHS argument doesn’t even pass the laugh test.

I guess the moral of the story is...

One of these groups is going to be REALLY, REALLY PISSED. I don’t know which one, but it’s a zero sum game. Somebody will lose.

[Eric Blair 2084]

But that’s what they wanted!

Sunshine, you are right. But I'm not sure that you even know the half of it.

Please allow me to expose the Tobacco Control Playbook in all it's naked glory for all FReepers to read:

If you or any other free market, limited government adherent can stand it, read the part on the right entitled "The ASSIST Strategy".

I'll provide my own translation as you and everyone else reads it for themselves:

"We tried putting warning labels on cigarettes and it worked a little bit. But some people are either too rebelious or too stupid to read and continue to do it. So if they want to act like children, then damn it, we will treat them like children. We'll take their allowance (cigarette taxes) and send them to bed without dinner (smoking bans) by banning them from restaurants and bars."

Maybe then they will submit to the Leviathan State and quit smoking.

[Ditter]

That’s it?????? $1,300,000 is all they got out of smokers? I thought you were talking about some REAL money. The state of MI spends that in an afternoon.

[CSM]

Thanks for the ping. From the article, “The 2007 Legislature passed bills to use extra money from the tobacco tax to boost spending on education, cut local property taxes and support health care for poor people.”

At least they don’t even pretend it is about health care costs caused by tobacco. In addition, some of the follow up comments are dispicable!

[Gabz]

That’s it?????? $1,300,000 is all they got out of smokers?

Your missing a few zeroes there, my friend.

TOTAL $ 1,297,907,000

That's BILLION, not million.