Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Raising the Cigarette Tax is Bad Policy
FreedomWorks ^ | September 11, 2006 | Matt Schumsky

Posted on 09/13/2006 9:26:29 AM PDT by DogByte6RER

September 11, 2006

Raising the Cigarette Tax is Bad Policy California Prop. 86 Should Be Defeated

By: Matt Schumsky

In less than two months, Californians will vote on a new $2.60 per pack tax on cigarettes. The new tobacco tax would bring the total cigarette tax to $3.47 a pack. The ballot measure to increase taxes by more than 250 percent is called Proposition 86, or the Tobacco Tax Act.

According to California’s non-partisan Legislative Analyst, the total revenue from the Tobacco Tax Act of 2006 could be up to $2.1 billion. What will happen to this new revenue? The main proponents of this measure are hospitals that would claim 40 percent of the new tax revenues. How will they spend the windfall? What is not explained in the proponents advertisements is that they get to decide how to spend the money.

Under Proposition 98, which voters passed in 1998, 40 percent of all new tax revenue must first be set aside for public education. But under the current proposition, the $840 million that should go to public education will instead go to the hospitals that are aggressively campaigning for the new tax.

The supporters of Proposition 86 say that this increased tax on tobacco could, “prevent 700,000 kids from becoming adult smokers and prevent nearly 180,000 deaths due to smoking among California kids now under the age of 17.” However, only about 10 percent of the proposed tax revenues would go toward efforts to help smokers stop or to keep kids from starting.

Another likely result of the passage of the Tobacco Tax Act would be the increased smuggling and black market sales. The Associated Press has reported on a study from the New York Health Department showed that “70 percent of smokers bought cigarettes from low or no tax sellers at least once in 2004, while 34 percent to 42 percent relied on those sellers “all the time” or “sometimes.” Regardless of what the taxman says, some people – perhaps many, many people will purchase cigarettes from low tax states in order to avoid the tax.

For example, black marketers could drive to a nearby state such as Nevada, where the cigarette tax is only 80 cents, buy 100 packs and return to California for a quick profit. Imagine a profit of $2.67 on each pack, $26.70 for each carton and $2,670 for a truck of 100 cartons.

Proposition 86, if passed, will lead to a broken system. Smokers will find a way to circumvent the tax by driving to nearby states. Do not let the advertisements fool you, Proposition 86 does little to help people stop smoking or prevent children from starting. It is nothing more than a money grab by people at big institutions willing to use the political process to take from others.

Proposition 86 is bad policy and bad for California. Tax increases of more than 250 percent should not pass because of the smokescreen put up by those who stand to gain a windfall. Proposition 86 should be defeated.

Matt Schumsky is the California Field Coordinator for FreedomWorks. He lives in Alpine and can be reached at mattsd8@cox.net


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Editorial; Government; Politics/Elections; US: California
KEYWORDS: biggovernment; blackmarket; calinitiatives; corporatewelfare; nannystate; prop86; regressivetax; socialism; taxes; tobacco
Navigation: use the links below to view more comments.
first 1-2021-25 next last
The great statesman Winston Churchill once said "If you have ten thousand regulations you destroy all respect for the law."

Sadly, the proponents of Prop 86 have not only lost all respect for the law, but they have lost all respect for Californians and the concept of individual rights and limited government. Please vote "NO" on Prop 86 on November 7 in California.

1 posted on 09/13/2006 9:26:31 AM PDT by DogByte6RER
[ Post Reply | Private Reply | View Replies]

To: DogByte6RER

For more information about FreedomWorks, go to:

http://www.freedomworks.org/index.php

For more information about the No on 86 campaign, go to:

http://www.stop86.org/


2 posted on 09/13/2006 9:28:26 AM PDT by DogByte6RER ("Loose lips sink ships")
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER; Just another Joe; Madame Dufarge; Cantiloper; metesky; Judith Anne; lockjaw02; ...

Boy oh boy! California lawmakers, like Maine, are completely nuts!


3 posted on 09/13/2006 9:29:54 AM PDT by SheLion ("If you're legal, you can fly with the Eagle!" - Michael Anthony)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER

Speaking of Winston, a carton of Winstons should be $1. The kids would cease smoking as a status symbol and I could resume to put burn holes in the carpet and tablecloth like the old days.


4 posted on 09/13/2006 9:31:22 AM PDT by RightWhale (Repeal the law of the excluded middle)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER
According to California’s non-partisan Legislative Analyst, the total revenue from the Tobacco Tax Act of 2006 could be up to $2.1 billion.

Oh right. I wonder how much dough we would rake in if we made the tax $100 a pack? Based on the Leg Analyst's reasoning it would be about $81 billion.

If people think drug smuggling is a problem, wait until this passes. Anyone and everyone will be returning to California with trunkloads of cigarettes either for resale, or their own use.

5 posted on 09/13/2006 9:33:22 AM PDT by ElkGroveDan (The California Republican Party needs Arnold the way a drowning man needs an anvil.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER
.."destroy respect for law."

& increase organized crime income, in this case muslim terror cells, it's a speciality of the breed.

6 posted on 09/13/2006 9:33:30 AM PDT by norraad ("What light!">Blues Brothers)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER
For example, black marketers could drive to a nearby state such as Nevada, where the cigarette tax is only 80 cents, buy 100 packs and return to California for a quick profit. Imagine a profit of $2.67 on each pack, $26.70 for each carton and $2,670 for a truck of 100 cartons.

LOL!
They're doing that now. The blackmarket will grow even bigger!
.
7 posted on 09/13/2006 9:42:01 AM PDT by mugs99 (Don't take life too seriously, you won't get out alive.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: norraad

BUMP!


8 posted on 09/13/2006 9:42:12 AM PDT by Publius6961 (MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: DogByte6RER

The power to tax is the power to destroy.

All those who urge legalizing "drugs" should take note.

Some say "legalize it and tax the hell out of it". That is becoming the case with beer and cigs. Some taxes are hidden inside of zero tolerance policies by which people get DWI charges over 3 beers or even Public Intoxication charges over 2 beers at a hotel bar. It's all about revenue.

These "drugs" that people complain about (like pot) can be grown at home. Would there seed taxes and licenses to produce for personal use?

Would the DEA just move under the ATF? (You know, those guys that raided Waco and that crack the knuckles of the mob?)


9 posted on 09/13/2006 9:42:45 AM PDT by weegee (Remember "Remember the Maine"? Well in the current war "Remember the Baby Milk Factory")
[ Post Reply | Private Reply | To 1 | View Replies]

Please dont give Mayor Bloomberg anymore ideas.


10 posted on 09/13/2006 9:49:25 AM PDT by Long Island Pete
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER

But its for the children !


11 posted on 09/13/2006 9:52:43 AM PDT by dartuser ("Until they love their children more than they hate us, there will be no peace" Golda Meir)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dartuser

Hey, that's my line. I say this all the time when someone starts preaching to me about smoking.


12 posted on 09/13/2006 10:07:13 AM PDT by JJR RNCH (Your mother doesn't work here!! Clean up after YOURSELF.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: SheLion

Thanks for the ping!


13 posted on 09/13/2006 11:09:30 AM PDT by Alamo-Girl
[ Post Reply | Private Reply | To 3 | View Replies]

To: SheLion

What those dolts in CA conveniently forget is that in order to get this windfall they have to encourage kids to start smoking. What a bunch of idiots!


14 posted on 09/13/2006 11:32:14 AM PDT by Sunshine Sister
[ Post Reply | Private Reply | To 3 | View Replies]

To: DogByte6RER; SheLion
But under the current proposition, the $840 million that should go to public education will instead go to the hospitals that are aggressively campaigning for the new tax.

Wow, sound like SRO at the trough, you can almost hear the grunting.

How much more do these ticks think they can suck out of smokers?

15 posted on 09/13/2006 1:35:24 PM PDT by Madame Dufarge
[ Post Reply | Private Reply | To 3 | View Replies]

To: DogByte6RER; ancient_geezer; Taxman; pigdog; Principled; EternalVigilance; PhilWill; kevkrom; ...
The ballot measure to increase taxes by more than 250 percent is called Proposition 86, or the Tobacco Tax Act.

Currently there is a bill before Congress The Fair Tax Act(H.R.25/S.25) that would shift the tax burden from income to consumption by abolishing all federal income taxes. Any state choosing to conform to The Fair Tax will be able to raise the same amount of sales tax with a lower tax rate Fair Tax FAQ #25 due to a much larger tax base. A consumption tax is more stable than an income tax as people still make purchases during unemployment.

What is not explained in the proponents advertisements is that they get to decide how to spend the money.

The Fair Tax will enable the people to have much more power deciding how much and when they will be taxed based on when and how much they purchase.

Another likely result of the passage of the Tobacco Tax Act would be the increased smuggling and black market sales.

The black market will be drastically reduced with The Fair Tax. The Fair Tax abolishes business to business taxes. These embedded value added taxes(VATS)are applied at each stage of production and passed onto the consumer in the form of higher prices. Abolishing the VATS will force companies to pass on the cost savings due to competition by lowering the cost of products including cigarettes making the black market less appealing.

16 posted on 09/13/2006 2:35:21 PM PDT by Man50D (Fair Tax , you earn it , you keep it!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ElkGroveDan

I, for one, am glad my husband is a truck driver. He can get our cigarettes in another state for alot less. There will be a ton of black market cigs out there. If you look real close at the bill, you will find that with that tax, we smokers will be paying for additional law inforcement to tackle the smuggling. Makes sense to me! NOT.


17 posted on 09/13/2006 5:40:55 PM PDT by Not just another dumb blonde
[ Post Reply | Private Reply | To 5 | View Replies]

To: Madame Dufarge; DogByte6RER
How much more do these ticks think they can suck out of smokers?

Here is a check to Maine from a smoker:



18 posted on 09/14/2006 3:25:05 AM PDT by SheLion ("If you're legal, you can fly with the Eagle!" - Michael Anthony)
[ Post Reply | Private Reply | To 15 | View Replies]

To: DogByte6RER
And why oh why would they want for people to stop smoking after all the money begins to pour in?.....imagine all of the lost revenue!

Taxing something that the government says it wants for people to do less of and then relying on that money is stupid (less smoking would bring in less money to big government so stopping smoking is NOT going to be a goal of theirs- no matter how much they say that it is) , but what do you expect from people whose MO is social engineering via taxes.
19 posted on 09/14/2006 6:29:00 AM PDT by socialismisinsidious ( The socialist income tax system turns US citizens into beggars or quitters!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DogByte6RER

Dang, I'll bet even criminal smugglers are contributing to that referendum from jail. We haven't seen a bonanza like this in California since the Gold Rush of 1849.


20 posted on 09/14/2006 10:27:13 PM PDT by microgood
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-25 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson