Kentuckian Blows Smoke in Face of Bloomberg Tax

The New York Times ^ | 24 November 2002 | DENNY LEE

[SheLion]

Douglas Smith, a chain-smoking mail-order entrepreneur from the coal mining town of Ashland, Ky., wants to share his bad habit. The idea struck last winter, when word of Mayor Bloomberg's proposed cigarette tax increase made the local news.

"I don't know why it aggravated me so much," said Mr. Smith, who smokes three cartons a week. "I'm not even from New York and it makes me angry. It really drives me nuts."

After a few cigarettes, a light bulb went on. "There's an opportunity for people to go in there and make literally millions of dollars," said Mr. Smith, a former landfill operator. With the tax in place, New Yorkers now pay about $7 a pack.

Two months ago, Mr. Smith and a neighbor started El Diablo's Tobacco Shack to sell cheaper cigarettes to New Yorkers. Kentucky has the second-lowest cigarette tax in the country, at 3 cents a pack. Virginia, at 2.5 cents, is the lowest, while New York City is the highest with a combined state and city tax of $3.

Interstate tobacco retailers have grown in recent years. Federal law requires mail-order cigarette customers to pay tax in their own states, but the law is rarely enforced.

El Diablo's is probably alone among the interstate tobacco retailers in marketing only to New York City. Working with a direct-mail company, El Diablo's has started to blanket the city with red-and-white fliers, asking "fellow New Yorkers" if they are tired of paying high prices for cigarettes. Of the 250,000 pieces mailed so far, 10,000 have replied yes, Mr. Smith said.

Newport menthols, traditionally marketed to blacks and Latinos, are the most popular. People in the South Bronx and eastern Brooklyn have been big buyers.

"We just figured that's where the working-class people are," Mr. Smith said. "Most of your smokers are people who can't afford the extra taxes." To that end, El Diablo's accepts payments not only by credit card, but also by personal check and even c.o.d. These easy-payment options don't sit well with some observers.

"I've never heard of this before," said Eric Lindblom, a policy analyst for the Campaign for Tobacco-Free Kids, a Washington advocacy group. "It's preying on poor people." Like Mayor Bloomberg, Mr. Lindblom voices hope that the higher taxes will be an incentive for people to quit.

Mr. Smith sees it differently. "Our plan is to make sure everybody has access," he said. "People have the right to smoke. I'm waiting for Bloomberg to quit drinking, so he'll start calling for prohibition."

[SheLion]

Mr. Smith sees it differently. "Our plan is to make sure everybody has access," he said. "People have the right to smoke. I'm waiting for Bloomberg to quit drinking, so he'll start calling for prohibition."

Bloomie even smoked POT! But heaven help anyone if they smoke CIGARETTES!

More On Bloomberg

[SheLion]

[NittanyLion]

"I've never heard of this before," said Eric Lindblom, a policy analyst for the Campaign for Tobacco-Free Kids, a Washington advocacy group. "It's preying on poor people."

Providing a low-cost alternative to taxes on a legal activity is "preying on poor people"? Mr. Lindblom should take some logic classes.

[SheLion]

Like Mayor Bloomberg, Mr. Lindblom voices hope that the higher taxes will be an incentive for people to quit.

This is a bunch of BS. How are they going to balance their budgets without the cigarette tax money! Who is he kidding!

[SheLion]

Mr. Lindblom should take some logic classes.

He's a moron! Love smoking or hate smoking! It's still a legal product. And these taxes are taxation without representation! He must be the brother of BloomingIdiot!

[TruthShallSetYouFree]

When I was growing up in NYC in the early sixties, a pack of cigarettes was a quarter and a subway ride was fifteen cents. The subway ride is now ten times as much, but the smokes are thirty times as much. Incidentally, general inflation in the forty years has been about six-fold. Government always causes greater price increases than private enterprise. Indeed, you can buy a 25 inch television today for less than it cost in the sixties, and get a far better, more reliable piece of equipment.

[RikaStrom]

"People have the right to smoke. I'm waiting for Bloomberg to quit drinking, so he'll start calling for prohibition."

Oh I like this line.

I must say that ever since I started stuffing my own, I am saving a fortune in taxes, and I find that I don't actually smoke as much. It's a win-win for me. :-)

[Gabz]

"I've never heard of this before," said Eric Lindblom, a policy analyst for the Campaign for Tobacco-Free Kids, a Washington advocacy group.

Washington advocacy group????????????

What a crock. TFK is nothing but a prohibitionist tax funded LOBBYING anti smoking Corporation that is part of the anti-smoker cartel.

Has anyone ever noticed that proponents of tax increases on cigarettes and bans on smoking in private business are all considered ADVOCATES - such a 'good' sounding term? Yet anyone, including individual citizens, opposing such measures are labelled as LOBBYISTS, TOBACCO FRONTS, or ADDICTS - all perjorative terms???

[SheLion]

Incidentally, general inflation in the forty years has been about six-fold.

Well, it's all about pork! Government programs keep getting bigger and they need to tax us to death to keep them going. If government would only cut their pet programs, the United States would be a lot better off. I wish they would go back to basics! ~sigh

[metesky]

Oh I like this line.

Me too.
:O)

[SheLion]

I must say that ever since I started stuffing my own, I am saving a fortune in taxes, and I find that I don't actually smoke as much. It's a win-win for me. :-)

Same here, Rika! I find if I am down to my last 2, and I am busy with something else, I put off smoking them until I can find time to roll up another batch. So it really is a win-win situation.

And a year ago this past June is when I started rolling our owns, and the money we had saved for Christmas was mind-boggling. I wish we could get the word out all across the United States for all the smokers. "Hey! Save money for Christmas, Smokers!" heh!

[Fred Mertz]

"People have the right to smoke. I'm waiting for Bloomberg to quit drinking, so he'll start calling for prohibition."

Hehehe!!

[SheLion]

Has anyone ever noticed that proponents of tax increases on cigarettes and bans on smoking in private business are all considered ADVOCATES - such a 'good' sounding term? Yet anyone, including individual citizens, opposing such measures are labelled as LOBBYISTS, TOBACCO FRONTS, or ADDICTS - all perjorative terms???

We are private citizens, speaking out. And this is the trashy names they label us. It's really sad, Gabz.

These advocacy groups are more hate filled and controlling then any coalition we have here. They have their teeth sunk so deep into the smoker they can’t see straight. Nothing matters to them but to do away with the smoker anyway they can.

[SheLion]

so he'll start calling for prohibition."

That's ALL New York City needs. LOL!

[breakem]

"It's preying on poor people."

Another nanny state goal. Save people from themselves, especially those poor, ignorant, people in New York.

[Gabz]

I'm with the two of you. I smoke far less than I used too do - actually I burn up less leaving them sitting in the ashtray while I'm typing or doing something else. They don't have all the excess additives to keep them burning, etc. Again, because of a lack of the excess additives there is no linger "stale smoke odor." My SIL, who is very sensitive to all types of smoke, not just tobacco has no adverse reaction to this tobacco.

She's not an anti and is also honest that it is ALL smoke not just tobacco that occasionally causes her difficulties, but the funny thing is she actually enjoys the smell of tobacco - says it reminds her of her father. she also likes a charcoal broiled steak and the smell of burning leaves!!!!

As to the savings by making our own - they just improved around here. The price of the tobacco we use has just been reduced to $3.89 a 6.1oz bag, which makes a carton and the local tobacco shop has a new line of tubes for 99cents. A carton of cigarettes is now costing us less than $5.00.

[D-fendr]

A product that saves them money "preys on poor people."

Pretzle logic.

[SheLion]

Another nanny state goal. Save people from themselves, especially those poor, ignorant, people in New York.

New York City, the most diverse city in the U.S. Go figure that they would elect a Mayor that wants to start chipping away All Things New York.

And Delaware is soon to go smoke free EVERYWHERE on the 26th of November. EVERYWHERE! I just shake my head here. If the anti-smoke fanatics want to undermine America, and the people allow it, well, there's not much we can do to stop them.

We make phone calls, we write letters, we email, we send research about second hand smoke not being a killer, that was done by a Government Agency, and still, the anti's, with all of their money, win. Everytime. Restaurants and bars are going out of business all across America in the wake of the Anti-Smoker Attacks. It's either "For the Children," (Bars?), or "Second Hand Smoke Is Killing You."

Funny how so many of us, brought up in smoking families have survived the test of time, eh?

[billhilly]

"I must say that ever since I started stuffing my own, I am saving a fortune in taxes, and I find that I don't actually smoke as much. It's a win-win for me." :-)


Like most smokers, I started young, and a sack of tobacco and some papers cost less than a dime, and would last a week. I was raised in Kentucky and have lived most of my adult life in Virginia. I quit smoking on April 19, 2001 after almost fifty years. If I lived in New York I would give that up too.

When will smokers realize that they can have influence by banding together in a voting block? Watch those taxes evaporate and prices come down in a hurry if they ever do.

[nypokerface]

Bloomberg is so worried about the city budget that he raises tax on cigarette to the point were people go elsewhere to buy them. He's quite the businessman.