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 ...
“The median household income for a smoker in 2011 was $27,700 compared to $45,761 for nonsmokers, according to Reynolds American.”
That’s fascinating.
What causes such a disparity in income?
HOUSEHOLD income. Smokers more likely to be single?
Responsibility2nd ~:(from the article) “ the president’s budget read. “Researchers have found that raising taxes on cigarettes significantly reduces consumption, with especially large effects on youth smoking.”
OBungler should read his own budget, specificly : “raising taxes (on cigarettes) significantly reduces consumption.
Then he has the nerve, to ignore the reduction of consumption in the economy ,
and tell us that we are on the road to economic recovery.
Where is the recovery ... ?
The economy is in the tank
and he wants to tax us more .. ?
What a piece of work .. !! /sarc
But if you were as wise as Obama you would be able to know that the taxes will reduce the number of cigarettes sold while at the same time be able to spend the money of 94¢ times the number of packs currently consumed because the number of cigarettes sold won't change. By the way, our chocolate ration has been increased from 30 grams per week to 20 grams. All hail Big Barack!
Medium quality “pipe” tobacco is under $15/ pound, yields 3 or 4 cartons.
Obama doesn’t mention of raising that- guess the congressional Dems will add the increase in the Senate.
BTW, I don’t encourage smoking but for those of you that do, you may want to investigate buying them online.
A former co-worker did that and saved a decent amount of money.
IDK where he bought them from online, but a search for “cheap cigarettes” should bring up numerous web sites.
As always when buying online, you take a risk with your personal info, CC#, possible scam web sites, etc...so buyer beware and use caution and do diligent research and buy from a reputable online retailer.
Most of them are located overseas, so don’t expect your order to arrive in two days and be aware of scams.
Check the web site to see how long they have been around, check for feedback by doing a search, etc...
Anyone that has bought anything from an offshore site knows the drill...
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See post 5. Nanny Bloom-wad has a muzzie black-market operation ongoing in NYC funding terrorism.
60% of cigarettes sold in New York are smuggled: report - CNN Money
Black-market cigarettes costing NY $20M a month - New York Post
3 Out of 5 Cigarettes Sold in State With Highest Cigarette Taxes are ...
Large scale cigarette smuggling networks in New York State are dominated by tight knit nationality-based networks, primarily families through blood or marriage of Lebanese, Yemeni, Jordanian and Palestinian descent.
Federal and New York State law enforcement officials estimate that nearly 60 percent of all convenience retail outlets in New York City are now Arab-owned, and with the Arab networks compartmentalized by ethnicity and family ties, the risk of infiltration by law enforcement is minimal.
In total, law enforcement officials in New York State estimate that well-organized cigarette smuggling networks generate between $200,000 – $300,000 per week. A large percentage of the money is believed to be sent back to the Middle East where it directly or indirectly finances groups such as Hezbollah, Hamas and Al Qaeda.
more...
No shock there.
Back in the 60s at the Ohio factory I worked in, there were always cars in the parking lot selling trunkfulls of low tax Kentucky cigarettes.
And that was when the incremental difference was literally pennies.
If you smoke, you suffer the consequences, drink...the same, sex with multiple partners...same, drive fast...same.
We don't need a bunch of NANNYS telling us how to live our lives.
Folks will say...wha, wha, wha, if you smoke, it'll kill ya....so what? No one is going to make it out of life alive.
I don't smoke, use to, but not now. I do like a good cigar every now and then when I'm out with the guys. It's none of the gubbamints business.
If my smoke begins to infringe on someone else, then that's when I need to shut it down, but if I'm in an establishment that has a sign....smoking allowed, then I'd expect NOT to see non-smokers.
But no, you gotta have these lil winnie liberals go into the establishment just so they can BE OFFENDED.
Man, what's wrong with this country? Does every damn thing have to be so freakin politically correct?
If the boy scouts don't want to allow girls...then ok. If they don't want gays....then ok. How bout the gays start their own rainbow scout group and not allow straights.
“The median household income for a smoker in 2011 was $27,700 compared to $45,761 for nonsmokers, according to Reynolds American.”
That’s fascinating.
What causes such a disparity in income?
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Really?
If you look at lottery players - you’ll see the same demographics. The lottery is a tax on stupid people. And stupid people are - well - too stupid to earn more.
Same with smokers. They are stupid. I’ll defend their right to smoke and object to stupid higher taxes. But thats about it.
Smoking IS stupid. And stupid people earn less.
yeah yeah, no. taxes on cigs are already in effect. No one is going to tax sugar and fat. Alcohol yeah.
Great post.
But, but, but will Obama now raise the funds for the EBT cards to keep his people happy?
It is much worse than you think, you just haven’t been paying attention.
US cigs are $5 a carton when not taxed. That is right, 50 cents a pack.
But a carton in NYC is $140. That is $135 in tax, or $13.50 a pack.
But wait - you pay for cigarettes with after-tax dollars - you already paid tax on the money.
38% federal income tax, 15 % FICA, 10% to NYS and NYC - that’s about 63% taxes you paid on the money you used to pay the cigarette taxes.
So you need to EARN $378, to buy a $5 product.
The other $373 is tax.
And Obama wants to raise it.
Well, why the heck not.
Smugglers need to make a living, too.
Seems like a person would save a lot of dough switching to marijuana, no?
“It is much worse than you think, you just haven’t been paying attention.”
Oh, I HAVE been paying attention. See post 48.
“Smugglers need to make a living, too.” Yep. Them terrorist groups ain’t gonna fund themselves, now are they?
Does anyone remember the tobacco litigation that was happening ten years ago? The "government" won...to the tune of $178B that was supposed to go to the very same thing. What happened to those funds? After hefty lawyer pay-offs, the money went into various states general funds where it is spent on everything but smoking cessation.
This is just more restrictive BS.
” But a carton in NYC is $140 “
A pack in Tokyo costs $ 3 .
That would be “mean” and the GOP does NOT want to be called “mean.” So, I will call them STOOPID.
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