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U.S. Mulling $2-A-Pack Tax on Cigarettes
Reuters ^ | Feb. 19 | Maggie Fox

Posted on 02/19/2003 7:23:11 PM PST by new cruelty

WASHINGTON (Reuters) - U.S. Health and Human Services Secretary Tommy Thompson said on Wednesday he was considering the possibility of raising the federal cigarette tax to $2 a pack -- from the current 39 cents -- as recommended by an advisory committee.

Last week, the HHS' Interagency Committee on Smoking and Health approved a plan for the steep increase in the tax. Half the money raised would be allocated for initiatives to help people stop smoking.

Anti-tobacco campaigners immediately welcomed the decision and pressured the government to accept.

"We urge the administration and Congress to act quickly and aggressively to implement this plan," William Carr, executive vice president at the Campaign for Tobacco-Free Kids, said in a statement.

"If they do so, it would represent an unprecedented national commitment to address the leading preventable cause of death and disease in our country. The committee estimates its plan would prevent three million premature deaths and help five million smokers to quit."

Health experts say smoking is the biggest single cause of preventable death, killing 400,000 people every year from heart disease and cancer.

Thompson said Surgeon General Richard Carmona, who chaired the committee, was coming up with a recommendation for him.

"I haven't made a decision on the tax but I like the concept of a fund," Thompson told reporters. "I think the general premise of setting up some sort of fund to give dollars back to people who want to quit smoking is good."

Thompson said 70 percent of smokers wanted to quit but could not get the support, including drugs, to do so.

He said he raised cigarette taxes while governor of Wisconsin, but added the issue of a tax was problematic politically.

Several studies have shown that raising the price of cigarettes can deter smokers, especially teen-agers.

In 1998, states reached a settlement with tobacco companies in which they received $246 billion over 25 years to pay for the costs of smoking-related illnesses.

Anti-smoking campaigners say states have recently been raiding those and other tobacco-prevention funds to cover budget deficits.

On Tuesday, Minnesota Gov. Tim Pawlenty suggested eliminating the state's youth tobacco prevention fund, using the cash to cover the state's budget deficit.


TOPICS: Activism/Chapters; Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: pufflist
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To: new cruelty
Cigarette manufacturers have started a way around this. They started offering cigarettes through direct sales/MLM channels. The circumvents they 'taxes'.
21 posted on 02/19/2003 7:37:46 PM PST by Calpernia
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To: concerned about politics
The other half will go to buy more red light cameras.
22 posted on 02/19/2003 7:37:52 PM PST by Husker24
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To: lizma
This would be a major boom for the American Indians and Swiss who sell on the internet.

Some states are, at this moment, trying to make these transactions illegal.
23 posted on 02/19/2003 7:38:23 PM PST by evaporation-plus
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To: Husker24
ROTFLOL
24 posted on 02/19/2003 7:38:30 PM PST by new cruelty
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To: new cruelty
The 246 B over 25 years, was a tax increase. The money went to the govt, it came out of taxpayers pockets. Guess that wasn't enough, and they are coming around to sniff through our pockets, to see if we have any money left. I read somewhere, that the tobacco farmer, and big tobacco, make less than a dollar of the total of a pack of cigarettes. That means the govt at some level, is making anywhere from $2-$5 a pack of cigarettes, and they say big tobacco is the danger.
25 posted on 02/19/2003 7:38:49 PM PST by jeremiah (Sunshine scares all of them, for they all are cockaroaches)
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To: concerned about politics
Damn, I must be too easy. Just under two years ago I stopped smoking, and I didn't charge nayone for it. If this government goes forward with this madness, they deserve our scorn.
26 posted on 02/19/2003 7:39:38 PM PST by billhilly (I don't know it all.)
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To: Dog Gone
LOL... and can agree with that one!
27 posted on 02/19/2003 7:39:43 PM PST by Txslady
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To: evaporation-plus
They can't make these outlets illegal. It is protected by the DSA (direct sellers association).
28 posted on 02/19/2003 7:40:35 PM PST by Calpernia
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To: new cruelty
"The federal government's role is not to pander to special interest groups by treating Americans like children and manipulating their behavior," Thompson told reporters. "I'd have to question the constitutionality of such a program."</wishful thinking>

29 posted on 02/19/2003 7:41:59 PM PST by fiscal_fish
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To: new cruelty
Then they would have an excuse to put a new tax on pickled eggs, beer, and chili.
30 posted on 02/19/2003 7:42:57 PM PST by Husker24
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To: new cruelty
In 1998, states reached a settlement with tobacco companies in which they received $246 billion over 25 years to pay for the costs of smoking-related illnesses.

Anti-smoking campaigners say states have recently been raiding those and other tobacco-prevention funds to cover budget deficits.

I guess the money that was extracted from the evil tobacco companies wasn't enough. I also figure that none of these people have ever heard of a black market. Additionaly, sin taxes are one of the most regressive taxes there are. Add $16 to the price of a carton and a lot of smokers will get pretty irate. At this rate crack will be cheaper in New York than cigarettes.

31 posted on 02/19/2003 7:44:23 PM PST by L_Von_Mises
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To: new cruelty
Dang, they're going to tax me into eternal life yet.
32 posted on 02/19/2003 7:45:33 PM PST by Damagro
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To: Husker24
ROFL!
33 posted on 02/19/2003 7:46:59 PM PST by Txslady
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To: Damagro
"Dang, they're going to tax me into eternal life yet"
they could force you to put money into an escrow account while your alive so when you die you could continue paying a new property tax on your cemetary plot.
34 posted on 02/19/2003 7:50:45 PM PST by Husker24
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Comment #35 Removed by Moderator

To: L_Von_Mises; 4ConservativeJustices; Ff--150; stainlessbanner; shuckmaster; aomagrat; ...
Tobacco has been closely tied to North Carolina's history, politics and economy for more than two centuries. It brings in $1 billion annually and is second only to hogs and poultry in farm sales. On the national level, North Carolina accounts for more than a third of the tobacco grown in the United States and more than half of the flue-cured tobacco.

Yet, tobacco communities in North Carolina are facing a number of challenges that will forever change tobacco's place in the state's economic and social landscape. Among these challenges are several multi-billion-dollar lawsuits either decided or pending against the tobacco industry - in particular, the $206 billion settlement signed in November 1998 between the cigarette manufacturers and the states' attorneys general.

Along with the lawsuits have come additional federal cutbacks in tobacco allotments (the right to grow tobacco), a decline in cigarette exports, an increase in federal and state cigarette excise taxes, and an increasingly tough regulatory environment. Added to this situation are closures and layoffs at cigarette plants, warehouses, and stemming and redrying facilities.
--

Progress to Date
Step I. In the wake of the 1998 settlement and other tobacco-related factors such as Hurricane Floyd's destruction of tobacco fields, the Rural Center study found that the state's tobacco communities could face the following economic impacts over the next three to five years:

A decline in cigarette production of nine to 17 percent
Tobacco production declines of five to 10 percent
A reduction in tobacco quota owner income of one to 2.4 percent
Total direct and indirect economic impacts to the state including:
Lost output (sales) of $2.2 to $4 billion annually (0.6 to 1.1 percent of the state total)
A permanent loss of between 14,500 and 26,700 jobs (0.3 to 0.6 percent of the state total)
Lost annual earnings between $403 and $743 million (0.3 to 0.6 percent of the state total)

Tobacco-Dependent Communities Research Initiative

I think several people need to see EXACTLY what this is doing to North Carolinians. Another 26,000 jobs down the drain, lost earnings of three quarters of a billlion dollars, 4 billion dollars lost in sales a year, yet I imagine they'll be expected to keep up the tribute money to the Empire. Not a d#mn one of them cares about the South or any Southern state. Thanks George Bush, Tommy Thompson, and Giddy Dolt. Thanks for ruining our economic recovery if this bill passes (which it will). Would you just come down here and pour salt over all our land? It'd be a d#mn sight faster and we could just get on with our menial agricultural lives. Oh yeah, but France is the enemy now I forgot. The Empire can destroy the lives of ten of thousands of hard working citizens of the state of North Carolina, but yeah, France is the enemy.

I'm sorry gentlemen for my forcefulness against this administration, the national government as a whole. I am about at the point of tears knowing what this will do to my state, my home.

36 posted on 02/19/2003 7:59:45 PM PST by billbears (Deo Vindice)
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To: seamole
Well, that quote is as good as any to pull out. I seem to recall that Bush and the GOP also said they would reduce government regulations, reduce spending, get the government out of education...not.

I see that federal spending has, over the last 2 years under Bush, gone up 22%. More than when Clinton was president.


Anyway, just a question. I thought Congress was the body which imposes taxes. Since when does Tommy Thompson get the authority to just impose a 2 dollar a pack cigarette tax because he thinks it a good idea.

BTW, Thompson is a fool. He lost his marbles a long time ago.
37 posted on 02/19/2003 8:01:20 PM PST by Jesse
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To: lizma
...Swiss who sell on the internet.

YesSmoke.com

$14.95 a carton for fresh marlboro lights. Add $2.00 for optional priority shipping. Arrives in about a week. This is not a solicitation, just my personal experience. I don't smoke that much, but I cannot and will not pay $5 for a pack, even if it lasts me a week.

It gives me a happy feeling all over when the package arrives from Switzerland, knowing that I have paid a fair price for the smokes, and didn't get gouged by the tax man.

38 posted on 02/19/2003 8:02:05 PM PST by Semper911 (I used to have another tagline. This is my new one.)
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To: new cruelty
looks like cigarettes and gas will cost the same
39 posted on 02/19/2003 8:03:49 PM PST by Gone_Postal
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To: Semper911
I don't smoke, but if this is passed, NYCers would pay over $9.00 a pack of cigs!!! Wow
40 posted on 02/19/2003 8:04:06 PM PST by NYC Republican
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