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.
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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.
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(Excerpt) Read more at money.cnn.com ...
He can afford it.
Money grab again.
These fatherless commie bastards think they should control all the wealth earned by citizens and only they are smart enough to decide how it should be redistributed.
BTTT
It’s an economic fact that if you want less of something - tax more of it. Thats why the liberal tax the rich agenda has harmed our nation.
Therefore - we should tax the porr. Tax the bejeebers outta them. Its about time the poor started pulling their own weight.
$1 federal tax on every pound of sugar, butter, beer coming up next if we continue down the road of regulating people's food/stimulant intake.
The tax on loose tobacco was already jacked up by 2200% to pay for children’s health care.
Those or his brand of choice, Virginia Slims.
How about a $1,000 tax on all tickets to basketball games.
Tobacco taxes in Most of Canada are comparable to New York. There is a huge industry in “grey market” cigarettes, legally produced tax-free on Indian reserves. Legal cigarettes are about $10/pack here, but the street price for Indian smokes is about $2.50/pack.
But will they be tax-deductible under ObamaCare as pre-existing condition?
Tax the people who raise taxes.
I quit smoking many years ago, but I’m against more taxation.
The money won’t go to where it’s supposed to go and will be used for Presidential vacations, Golf outings, “Soul” night at the WH and spent frivolously by HomObama and that Female Impersonator/Drag Queen wife of his.
Nothing but a couple of hood rats that hit the Affirmative Action lottery.
The 94 cents supposedly will go to kindergartens for 4 year olds. There is no evidence such early education benefits children. It just a day-care service for single mothers.
94 cents tax on ciggies, how can that be?
Isn’t smoking a pre-existing condition?
It will create a black market, which probably already exists, or substitution, i.e., home-grown pot.
Those who would increase taxes on cigarettes fail to understand the Law of Demand. Higher taxes mean higher prices which means a lower quantity demanded....cigarette sales will decline or the market will seek cheaper substitutes. I would expect that organized crime will see a great opportunity for bootlegging cigarettes.
Actually it is just for the indoctrination of the four year olds. The Government could not care less about the mothers. They do and will need the cannonfodder and zombies though.
This will support a new underground economy based on cigarettes. And the indian reservations should be able to do some business. And of course revenue from the sale of cigarettes will go down.
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