Posted on 04/10/2013 1:32:46 PM PDT by Responsibility2nd
President's Obama's call for a 94-cent-a-pack hike on federal cigarette taxes to fund early childhood education programs is controversial.
Anti-smoking groups applaud the proposal, but some tax experts and tobacco companies are against it.
The case for the tax. The tax is being presented as way to fund education and reduce smoking rates. It would raise roughly $78 billion over 10 years.
"The proposed tobacco tax increase would have substantial public health benefits, particularly for young Americans," the president's budget read. "Researchers have found that raising taxes on cigarettes significantly reduces consumption, with especially large effects on youth smoking."
After a 62-cent-a-pack tax hike was passed in 2009, cigarette sales dropped by 10%, according to the Campaign for Tobacco-Free Kids.
more....
Why it may be a bad idea. The biggest argument against the tax is that it will fund early childhood education on the backs of the poor. Not only is the tax not progressive - it does not go up the more money one makes -- but a higher percent of smokers are middle or low income.
The median household income for a smoker in 2011 was $27,700 compared to $45,761 for nonsmokers, according to Reynolds American (RAI, Fortune 500), a cigarette maker which is, unsurprisingly, against the tax.
Nearly half of all smokers had a household income of less than $25,000 a year. Meanwhile, under 15% of smokers had a household income over $75,000.
more...
(Excerpt) Read more at money.cnn.com ...
Obama cares no a friggin bit about the poor.
94 cents a pack?????????????????! (Don’t smoke, never have, but have always voted against smoking taxes.)
Maybe he’ll make menthols exempt.
Also FTA....
Cigarette taxes across the nation. Many smokers already pay a high tax rate for cigarettes. The current federal tax rate is $1.01 a pack. So Obama is proposing an increase to $1.95 a pack. But the taxes don’t stop there.
Some states and municipalities have also used cigarette taxes as a cash cow for years. In New York City, the country’s highest-tax area, combined state and local taxes add up to $5.85 a pack, according to the Campaign for Tobacco-Free Kids. In Manhattan, a pack of cigarettes can cost $14, while at an airport duty free shop they can be as low as $3 or $4 a pack.
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What is interesting is the huge black market for tax free cigarettes in NYC. And you know is making money on black market cigarettes?
Muslims.
He’s just instigating a second front on the drug war as people turn to tobacco smuggling and contraband.
So, a higher cigarette tax discourages smoking,
but a higher income tax
and higher investment taxes
don’t discourage earning income and investing?
so the eff what? Shoulda been done a long time ago. My sick on disability sis smokes like a frickin chimbley. It’s a waste of money. Tax it to death for all I care. Cigs killed my beloved grandmother who smoked herself to death.
Does anyone know what the cost of mary jane is compared to cigs with this tax (and all the other taxes.)????
If taxes on cigarettes reduces smoking then obviously taxes on profit reduces profit making behavior.
Duh!
Even the Russian Communists had the sense to make vodka cheaper than safe drinking water by correctly reasoning that a population which could be indulged in their addictions would be more compliant.
FUBO! The founders would be shooting by now.
can’t ban it price them out.
Reminds of the other dictators who live in their palace, can afford what ever they want but others are priced out.
Speaking of which why has not one republicans been outside the white house getting the press corps there and stating how the house we pay for is closed because they think they’re the royal family and yet concerts go on and fancy dinners, friends and family eat on and drink on our dime.
HEY GOP WHERE THE HELL ARE YOU AT ALL ON ANYTHING?
His brand is already 10 bucks in Jersey.
The $$ will never be spent on what they say it will be spent on. When do American's wake up?
Of course the Fed's would rather TAX them.
Good Gawd...our gobment is totally stupid!!!
I think Obama shold put a tax on video games, reality shows and sports finals.
THAT should wake up the somnolent “politically uninformed” quick enough to demand his impachment.
If Canada has cheaper cigarettes, like booze in the 1920’s, there will be a black market for them. Heck, if you have a Chevy Blazer or some other SUV, (just speaking hypothetically) you can probably find a place to cross the border without anyone knowing, get the goods and bring them here. As long as you don’t break any (well other laws), no one would know. If you have a boat, go across Lake Erie in the dark of night with a few guys and off you go. Again, it is like the 1920’s.
So, a higher cigarette tax discourages smoking,
but a higher income tax
and higher investment taxes
don’t discourage earning income and investing?....
Ah, I see you’ve been to the re-education camp.
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