Miami Cigar Manufacturers Brace for SCHIP(Time to stock up - just like ammo)

The Luxist ^ | 4 Mar 09 | Tom Johansmeyer

[PilotDave]

President Obama wants to create jobs, yet he isn't too worried about some that already exist. Miami's cigar manufacturers are watching April 1, 2009 with grave concern. The new State Children's Health Insurance Plan (SCHIP) takes effect on that date, resulting in a 900 percent tax increase on every cigar made in the United States – or imported here.

[PilotDave]

Federal taxes on cigars and other tobacco products will increase April 1 to raise $35 billion for children's health care. The increases include: • Cigars: From 5 cents to 40 cents per cigar. • Cigarettes: From 39 cents per pack to $1.01. • Roll-your-own tobacco: From $1.10 per pound to $24.78. • Pipe tobacco: From $1.10 per pound to $2.83. • Chewing tobacco: From 19 cents per pound to 50 cents per pound. But of course this won't have to be paid by anybody who earns less than $250,000 a year. And it won't create a black market at all. And nobody will order online from overseas from lower taxed countries.

[KoRn]

I’m going to quit smoking.

I’m giving myself a tax cut!

[TaMoDee]

Rush will be really PO’d!

[Drango]

2nd UPDATE: Reynolds, Lorillard To Raise Cigarette Prices
Dow Jones
March 06, 2009: 11:23 AM ET

By Anjali Cordeiro

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Lorillard Inc. (LO) and Reynolds American Inc. (RAI) announced plans to hike prices for their cigarette brands, a move that comes on the heels of price increases from the nation’s largest cigarette maker Altria Group Inc. (MO).

Pricing is a key issue for the U.S. cigarette industry as companies have seen pressure on volumes amid smoking bans and higher taxes. Higher prices can help bolster profits when volumes suffer.

Reynolds said Friday that its cigarette business is raising list prices of its Camel, Kool, Winston and Salem brands by 44 cents per pack effective March 16.

The company will raise prices of Pall Mall and Doral cigarettes by 41 cents per pack, a spokesman for the company said. The spokesman said Reynolds is using a “two step” process on pricing. In addition to the list price increase the company plans to make some “adjustments” to discounts at retail.

“The net impact is we would be aligned with our competition,” he said.

Lorillard is raising prices for Newport cigarette and several other brands by 71 cents per pack.

The hikes come on heels of price increases by competitor Altria Group Inc. ( MO), which early this week announced plans to raise prices on Marlboro and several other cigarette brands by 71 cents a pack, a move it said was primarily intended to cover the costs of a 61 cent a pack federal excise tax increase that goes into effect later this year.

http://money.cnn.com/news/newsfeeds/articles/djf500/200903061123DOWJONESDJONLINE000766_FORTUNE5.htm

[PilotDave]

I think it’s ironic that Obama’s first federal tax increase will be on tobacco products and 95% of the revenue generated will be from the 95% of Americans who were promised by Obama that they wouldn’t have to pay any more federal taxes. Makes my head hurt and my sentence run.

[Red Steel]

resulting in a 900 percent tax increase on every cigar made in the United States – or imported here.

Rush smoke cigars. A hidden tax in the SCHIP legistlation - sneaky rats.

[djf]

I have about 2 lbs of RYO in cans.

I’m gonna have like 20-25 by Apr 1st.

[Cobra64]

I’m going to quit smoking.

I’m giving myself a tax cut!

More and more of our freedoms are being taken away by the government. In this case, through TAXES.

[llevrok]

I’m going to quit smoking.

[umgud]

Do they really think smokers are bottomless pits? At some point, they gotta know when to quit chokin this chicken or one day there will be no more golden eggs.

[Pipe Dog]

ping

[highpockets]

And it won't create a black market at all.

I can't wait for those tasty brands from China.

[Cobra64]

As the black market grows, less tax revenue.

[JerseyHighlander]

Second best cigarette brand I’ve ever smoked are from China. No idea how much other garbage was in that tobacco, but it was really good.
China state monopoly controls something like 30% of all tobacco trade on the planet, they are really good at providing varying qualities of tobacco to the world market (including some super premium brands), and I’m sure at least the west coast of the USA will be flooded with Chinese tobacco soon enough.

Who would have thought the Chinese smugglers would become the Ragnar Danneskjölds of free market capitalism inside the USA... Not even sure Rand would have seen that possible.

[TigersEye]

They sure put a big hit on roll your own (cigarette) tobacco.

I'm going to have about 15 pounds stashed before April 1st and after that I find a black market source, grow my own or quit. Not one cent for the politburo.

[melissa_in_ga]

Interesting that the article says April 1. I am a smoker and bought a pack of cigarettes on Sunday. It was already $1.00 higher. I know prices are higher in NY and NJ, but here in Atlanta metro, Marlboros are $5.01 per pack.

I too am quitting smoking. Unfortunately, once all the smokers quit to avoid the higher prices - and consequently increase their healthiness - they’ll have to go about getting the money in other ways.

[KoRn]

Prices are up here in VA too, ranging from $3.75-$4.00. A clerk at a convenience store I use told me that later in the week prices were going to go up again by $7 per carton.

I’ve had enough of being the government’s financial whooping boy every time a politician can’t pay for something, so I’m opting out.

I plan on putting the cost savings into my guns/ammo fund. I encourage other FReepers to do the same.

[snowsislander]

The new State Children's Health Insurance Plan (SCHIP) takes effect on that date, resulting in a 900 percent tax increase on every cigar made in the United States – or imported here.

Mr. Obama's new SCHIP cigar tax rate is an astounding 53%, but it has a cap of 40 cents per cigar.

[libertarian27]

http://www.seedman.com/Tobacco.htm

I have 50 lbs of tobacco - at $10/lb it’s $500

If I didn’t do that it would cost me $1700

I just saved $1200 - very stimulating!

[PilotDave]

“Mr. Obama’s new SCHIP cigar tax rate is an astounding 53%, but it has a cap of 40 cents per cigar.”

The current tax per cigar is around 4 cents. It’s going up approx. 10 times to 40 cents. That’s 1000%. How I wish it were only 53%.. Could be worse. Roll your own tobacco is going up 2200%.