BIG TOBACCO'S SHOWDOWN IN THE WEST

National Center for Policy Analysis ^

[bruinbirdman]

California is poised to enact the largest one-time cigarette tax hike ever -- adding $2.60 per pack -- on top of an already existing 87 cent excise tax, bringing the average price for a pack of cigarettes to $6.55, says Nanette Byrnes in BusinessWeek.

The new measure is particularly worrisome for tobacco companies because of California's large share of the tobacco market; the state is home to 9 percent of all U.S. smokers.

In addition, cigarette makers argue that the tax is unfair, and an irresponsible spending of the public's money:

** The measure does not require that all tax money be spent on programs to help smokers quit or on treating smoker's illnesses.

** It needlessly includes an antitrust exemption for hospital companies.

** It will only lead to increases in untaxed counterfeits and buying from other states will hurt sales, undermining the tobacco tax revenue.

Despite the tobacco industry's efforts, many expect the mandate to pass easily. But that will not end the fight, says Byrnes. Other states are generating similar proposals:

** In Missouri, there is a court battle to get a measure that would increase taxes by 80 cents per pack on the November ballot.

** Several candidates running for office in Maryland, and some already in power, are pushing for a $1 per pack increase.

Source: Nanette Byrnes, "Big Tobacco's Showdown in the West," NewsWeek, September 11, 2006.

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[HEY4QDEMS]

While in Armenia, Marlboro imported from the USA were $8.00 a carton with their tax on the cigarettes

Better check the born-on date on those.

[Gabz]

Nanny State PING..........


Smoker or not --- one has to realize it will NOT stop with cigarettes.........

[Gabz]

Tabacco should boycott California completely. Let them figure out how to fund their medicare and other programs! Big Tobacco, tell California politicians to go to Hell!

It's a great idea, and I agree with it - but it can not happen. The Master Settlement Agreement of 1998 prohibits the tobacco companies from stopping sales of their product in the states that signed on, and California is one of them.

[traditional1]

"My husband is a truck driver and will be purchasing ours in another state if this passes."

It won't be long before they have spectacular-level penalties for non-taxed cigarettes found in your possession. Likewise, they will have the TSA inspecting bags for cigarettes....

The non-smokers who cheer these actions have no idea what this slippery slope will take them to (Fat Tax on fast food, etc.). Selective taxation is clearly an assault on personal freedom, under the guise of "public health".

I do not visit Kalifornia regularly anymore, as it has become a third world country, with half the populations in major cities that can't even speak English.....

Where the bloodsucking Lawyers attacked big tobacco's deep pockets to the tune of BILLIONS in fees they collected, the settlement money went right into the general funds of the states, as opposed to going to pay "health-related costs" that tobacco was pilloried for in the suit.....what a joke.

[Mr Ramsbotham]

I'm gonna buy me a small 7-11 on the NV side of the CA-NV border.....

You were born to make your fortune!

[patton]

Whisky rebellion, anyone?

[Gabz]

And soon.................PLEASE.........

[nygoose]

Why won't the NAALCP invoke the Equal Protection Clause of the US Constitution?

[bfree]

Heck, even that tax hike is still cheaper than Chicago. BTW, tomorrow's the day for my monthly "sin tax avoidance run" to Wisconsin for cigarettes, wine and good old fashion booze. Plus gas prices are 50 cents a gallon cheaper than my neighborhood station. Nice drive to get out of the city and feel good about saving all that tax money.

[383rr]

I wonder how much money I could make running smokes?

A good bit, I'd say. Sounds like a hell of a business oppurtunity.

[Gabz]

Enjoy your road trip!!!!!!!

We're going to be working with a couple other folks to clear a tree that came down in the storm that wasn't a storm ( Ernesto)

[pierrem15]

I told someone in my office that when they raised the cig tax here (price is now around $7.00 a pack) we would see lots of smuggling.

I've been offered cigs on the street from a guy with a backpack at $5.00 a pack twice in the past week.

[pierrem15]

That's why I drive to Indiana :-)

Knowing I'm screwing those thieves Daley and Bag-o-shitz just makes that first puff even sweeter.

[elkfersupper]

I'm gonna buy me a small 7-11 on the NV side of the CA-NV border.....

I already own a 1-ton pickup and an enclosed trailer...........

[Alamo-Girl]

Thanks for the ping!

[taxesareforever]

Hey, I feel your pain. Not that I am a smoker but that the government thinks they know what is best for us. They can screw anything up and brush it off as a bad decision. But let anyone light one up and they are ready to call out the gestapo. Freedom has a new ring to it today. It only means freedom in line with what government dictates. A sorry affair. Reeaaalll sorry affair. I say, I hope your husband makes a real nest egg with his "additional" haul.