Washington – For the estimated 20% of Americans who smoke cigarettes, the impact of a federal excise tax increase that takes effect Wednesday is already being felt.
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Earlier this month the manufacturer of Marlboro, Parliament and Virginia Slims, Philip Morris USA, increased prices by 71 cents a pack, 9 cents more than the federal tax increase. The maker of Camel, Kool and Salem cigarettes, R.J. Reynolds Tobacco, bumped wholesale prices up by 44 cents a pack and reduced discounting.
The revenue from the tax increase, which will be used to expand coverage under the State Children’s Health Insurance Program to an additional 4 million low-income children, was signed into law in February.
It calls for a 62-cents-a-pack increase, to $1.01, in federal excise taxes on cigarettes for the nation’s estimated 45 million cigarette smokers as well as increases in taxes on little cigars, cigars, and pipe and chewing tobacco.
The higher prices should have the positive effect of reducing teenage smoking, according to Dr. Jonathan Klein, a professor of pediatrics at the University of Rochester.
“There’s very good evidence that adolescents are the most price-sensitive,” Klein said.
New York state, which has among the highest tobacco tax rates in the nation, has seen a decline in teenage smoking. States with lower taxes have not, Klein said.
Last year the state increased its tax on cigarettes by $1.25, from $1.50 to $2.75 per pack.
New York also imposes a 4% state sales taxes on tobacco products, said Tom Bergin, spokesman for the state Department of Taxation and Finance. Local sales taxes push up the overall sales tax to more than 8% in Yonkers and New York City and on Long Island.
But the biggest impact is expected to be hundreds of miles away from the Empire State, where tobacco taxes are low. South Carolina has the nation’s lowest tax on cigarettes — 7 cents a pack. Missouri imposes a 17-cents-a-pack tax.
The current average among the states is $1.19 a pack, according to Eric Lindbloom, director of policy research for the Campaign for Tobacco Free Kids.
Dr. Irwin Redlener, president of the Children’s Health Fund in New York City, predicts that adult smokers who are economically “onthe edge” also may quit.
“Given the economic climate that we are in … a new tax may be the final incentive to get them to stop smoking,” Redlener said.
But Redlender said he dislikes the fact that the tax increase was used to finance an expansion of the State Children’s Health Insurance Program under legislation signed into law in February.
“I don’t want to see our health coverage of children dependent on this,” said Redlender, who said he would prefer to see the expanded coverage paid for from the federal government’s general revenue.
The Campaign for Tobacco Free Kids is hailing the fact that the tax increase will equalize the way that small cigars, which are increasing in popularity, are taxed.
“They really are cigarettes pretending to be little cigars so you can pay less tax,” Lindbloom said. “This is a problem nationwide. It’s a problem with state tax rates. It’s a big deal because cigarette sales have been going down, but little cigar sales have been going up.”
The federal tax on little cigars is currently 3.7 cents per pack of 20, while a pack of cigarettes is taxed 39 cents.
Come Wednesday, both types will be taxed $1.01 a pack.Likewise, the tax on roll-your-own tobacco was 4.5 cents per pack and will increase to $1.01.
Smaller tax increases will be imposed on large cigars and chewing tobacco, which will be taxed at 11.3 cents a can.
The International Premium Cigar and Pipe Retailers Association predicts that the nation’s estimated 12 million cigar smokers and 1.2 million pipe smokers will trade down to less-expensive blends.
The average cigar smoker smokes only two cigars a week, said Joe Rowe, the group’s executive director.
“I suspect pipe smokers will continue to buy pipe tobacco and smoke,” Rowe said. “Pipe tobacco has been declining for years, and it’s a choice and not habit.”
Frank Cervone, store manager of Mom’s Cigar in Scarsdale, agreed.
“They are probably not going to stop smoking but go to a lower-priced cigar,” said Cervone, whose store sells premium cigars for $4 to $12.50 each.
There is a loophole in the tax though. Some loose tobacco is still very inexpensive. I was recently told by a homeless man that a bag of loose tobacco equivalent to around 2 packs of cigarettes is only around $2. Even worse, this tobacco is typically smoked without any filter, so it is even more dangerous than cigarettes. I was always
wondering why almost all the homeless who I have seen smoking made their own cigarettes.
It’s the governments greed at work.
Everyone knows that cigarette smoking KILLS and people die young because of it.
If the government was not greedy but ethical it should have banned the killer cigarettes.
But the government will never ban cigarettes because they gain to much money form it.
1) First the government gains on the tax money form cigarettes buyers
2) Tax money form cigarette manufacturers
3) Campaign contributions form manufacturers who lobby not to be outlawed.
4) Finally the government is very happy when people die young because then the person collects no social security o much less than if he lived a long life.
5)At the end the government still collects taxes after death too, estate taxes and all kinds of other taxes.
The Government makes money at the expense of US citizens death form smoking.
Yeehaw!
Governments exist for one purpose only: to secure the inalienable rights with which the Creator has endowed each person. In simpler words, to protect people from each other. Where does any government get the right to make laws to protect people from themselves? Governments get their just powers from the consent of the governed, and the smokers certainly never consented to this. Nonsmokers are not “governed” by this law, so their consent is irrelevant.
1. Add taxes to cigs in order to pay for govt programs.
2. When/If people stop smoking, tax the dickens out of everyone because we nebach dont have the money to pay for our rediculous programs.
The high cigarette taxes in the US are decreasing smoking rates. In the US, the smoking rate is under 20% of adults now, down from around 50% 50 years ago. It has been steadily dropping.
In Russia and China though, over 50% of adult males smoke. In some European countries over 30% of adult males smoke. Smoking tends to be very culturally influenced. In Russia and China for example, smoking rates for men are very high, but for women are low. India has a very low smoking rate. Unfortunately the smoking rate in Israel is higher than in the US, especially for men. What is Israel doing to decrease the smoking rate? It has been dropping, however imo not fast enough.
It’s not the tobacco in the cigarette which kills but other non-tobacco additives which the manufacturer ads to the cigarette which kills.
They deliberately go out of their way to inject non-tobacco chemicals in to the tobacco to make it addictive and it is these components which kills.
Anyone who smokes pure unadulterated tobacco (home-made) will suffer no ill effects.
For years the Israeli army subsidized cigarettes. This would explain the high rate of smokers.
why dont they just ban smoking?
The government has no business abusing our tax system to get people to quit smoking. The government has no business doing anything to control people’s private lives that way.
Smoking is a perfectly legal activity. It is easy for the government to pick on smokers because most non-smokers, being the majority, are so belligerent toward smoking it is easy to pass tax increases on them. It is ridiculous. Businesses have been destroyed because of nonsensical smoking bans. Why don’t they put a tax on gum? Far more people chew sugary gum which rots their teeth. Perhaps we should just put a 200% tax on it.
People have a right to do as they please. If you don’t like cigarettes, don’t smoke them. That doesn’t mean that I or anyone else is interested in your interferences in the rights of others.
FL used to be a tobacco friendly state. They put a measure on the ballot to ban smoking in public places (bars/restaurants, etc). If not for the communist NYers in south FL, the bill would not have passed. Many bars and restaurants that relied heavily on the “sports” crowd went out of business. While I don’t really care about goyishe restaurants, it was still someone’s business… their parnossoh… So, a business goes down and 10 people lose their jobs over a law that the government said was their to protect workers.
Who will they tax when the tobacco industry is gone? Maybe sh’chita? Don’t think for one minute that the goyim in this country wouldn’t jump at the chance to tax it if given the choice over something that matters to them. Anytime there is a 200-300% tax on ANYTHING, something is wrong. You can be anti-smoking, but only a genuine Castro-loving communist could go along with this.
Good thing you can (by Federal Law) import 200 cigarettes per day duty free. I am more than happy to get my TAX-FREE cigarettes from Europe at $18/carton including shipping. I always agreed with some taxation and was happy to pay it, just as I do on alcohol. This time the line has been crossed and the government will now get no tobacco taxes from me.
Please stay out of our lives!
“When/If people stop smoking, tax the dickens out of everyone because we nebach dont have the money to pay for our rediculous programs.”
“People have a right to do as they please”
How about the rights of people not to breathe in second hand smoke? That is why California has outlawed smoking in all public places, including city sidewalks and outdoor cafes. I hate it when I walk down the sidewalk and have to dodge lit cigarettes held near me, and get smoke blown in my face.
PMO, I hope you don’t get sick from your smoking. Many smokers die each year from lung cancer. I lost a family member to lung cancer. I would like to see cigarettes priced at over $1 each. Then the smoking rate might get to below 10%.
The damage to health smoking causes is very real. In addition to smokers living on average a much shorter lifespan than non smokers, smokers also take more sick days from work, and are more likely to get into a car accident than non smokers.
“What a ridiculous argument. If you drive a car, you force me to breathe in 40 times the amount of carbon monoxide that a cigarette has just by driving past me”
A lit cigarette doesn’t just produce just carbon monoxide. There are many irritating substances in cigarette smoke. Cigarette smoke has high levels of arsenic and cadmium as well as aldehydes. Many are sensitive to the nicotine in cigarette smoke. Aldehyde sensitivity is very common. SO ASIDE FROM BEING A HEALTH RISK, CIGARETTE SMOKE IS VERY IRRITATING TO MANY PEOPLE. For that reason alone, cigarette smoking should not be allowed in any public places. If you want to smoke on your own private property away from any other people that is your right, BUT DON’T INFLICT YOUR IRRITATING AND DANGEROUS SMOKE ON OTHERS.
There are many websites that talk about the hundreds of dangerous substances in cigarettes, over 40 of which are known carcinogens. The point is that even if cigarette smoke wasn’t dangerous, it is still a major irritant for many people.
It makes me sad when I see Jews smoking. A few people I knew who were smokers died from lung cancer. I realize that it isn’t easy to quit smoking, however many worthwhile things in life aren’t easy.
I just read about the increase in federal tax for loose tobacco from $1.10 to $24.78 a pound. The article mentions that 13 packs of cagarettes can be made from half a pound. That still leaves loose tobacco as being much cheaper than cigarettes. I hope the law will be modified soon to make loose tobacco equal in price to cigarettes.
“This is a free society, where people are free to do as they please. “
As long as they don’t infringe on the freedoms of others. If you want to smoke on your own property far away from others that is fine. If you want to smoke in public places(including outdoors) within 100 feet of others that is a problem.
“We all do things that aren’t healthy. Many people eat very fatty foods. Some of a taste for sweets. “
However smoking near others is an infringement of the freedom of others. Some argue that the odors or cigarettes remain in the clothing of smokers after they finshed smoking, and that even this residual odor is a factor.
“But nobody has the right to tell me what I can and cannot do. If I smoke in my house, don’t visit”
What about the others who live in your house? They are affected by your smoking.
“If I smoke in my house, don’t visit. If I allow smoking in my restaurant, don’t give me your business”
What about your employees? Why must they be inlicted with your smoking? What if they can’t find another place to work? There are guideline that workplaces must be smoke free.
” know people who have severe peanut allergies. They don’t walk around everywhere in public freaking out every time they see a peanut, even though it could be very harmful.”
The difference is that those who become ill from just having peanuts nearby are an extremely small number(the number who become ill eating peanuts is much larger). Aside from being dangerous, the percentage of people who are irritated by cigarette smoking is quite high.
“Smokers have become an easy target for ridiculous taxation and other abuses because it sounds good on paper.’
Many who are against high cigarette taxes want tobacco to be made illegal.
“Most people don’t smoke and most non-smokers just hate the smell of smoke. “
So then why do bahavior in public that you know will irritate other people? That is very selfish and antisocial.
“The health part of it is such a lie though”
A lie? Now you are starting to sound like the holocaust deniers. There is so much proof of so many deaths due smoking related diseases.
“you don’t care about my health.”
I care about all Jews very much. I care even more about those who are exposed to your smoke involentarily.
“but at least be HONEST in your argument “
My primary arguement is that if I can smell it it annoys me. Those who are sensitive to aldehydes such as myself might get a headache just from a very tiny exposure to cigarette smoke(don’t remind me about all the aldehydes in perfumes and colognes. Those are also a problem for many people).
“If I am standing outside smoking, don’t walk near me. Cross the street if you really don’t like it.”
LOL! Go to your own private property at least 100 feet from anyone else if you want to smoke.
“Secondly only a genuine communist liberal would ever think it is OK to abuse the tax code in such a disgusting and anti-American way. Taxes should never be used to punish people because you don’t like their perfectly legal behavior”
Where is it written that smoking tobacco must be legal? Promoting health and taxing unhealthy behavior is very American. Think of all the medical bills the US government must pay due to smoking related illnesses.
Smoking is major issue for many people. It wouldn’t surprise me if the taxes on tobacco continue to rise dramatically, or if tobbaco even becomes illegal.
Getting people to quit smoking is good for everyone, even if some smokers are resistant to quitting.
“The United State Congress, on the drug classification by the FDA, decided it was legal and has continued to uphold that legality and protect and defend my freedom”
That might change though.
“Where else do we put a 300% tax on something to “protect” people? “
It is not a matter of the percentage tax, but to get the price of this unhealthy behavior to be high enough so that demand will be low. The taxes on alcoholic beverages are also quite high. some want very high taxes on junk foods. I think it would be a good idea. Perhaps then fast food restaurants would be selling mostly healthy foods.With the proper use of spices, heathy foods can taste quite good.
“Your argument is phony, and your logic just does not hold up. You just don’t like smoking. That’s all it is for you. Don’t try to justify it with phony arguments. At least admit your real intentions.”
Most people don’t like cigarette smoke. Even most smokers don’t like second habd smoke(a different flavor or type than their own?)
“Getting smokers to quit smoking is not a good thing. Smokers CHOOSING to quit smoking is a good thing for those who choose to do so.”
Giving them more reasons to choose to quit, such as with very high cigarette prices is a great thing.
“Tobacco is one of the industries that built this nation”
Some would say slavery also built this nation. I am glad it was abolished, though it would have been much better if it never existed. I feel the same way about the tobacco industry. if you were around in the early to mid 1800’s would you have fought to protect the incomes of slave traders, and complained that many would lose their livelihood if slavery is abolished?
“You liberals just want to tell everyone how to live their lives”
Huh? I thought liberals are the ones who have an anything goes mindset?
“I will always defend people’s rights to self determination and freedom even when I disagree with them”
People smoking in public infringes on the freedom of non smokers. You don’t seem to understand this.
” You either believe in freedom or you believe in communism. You can’t pick and choose.”
The government can choose to establish laws to protect the rights of the society in general even if it limits the rights of some individuals. This must be done in an ethical manner though.
Loopholes in the tobacco laws will be adressed over time. Already the issue of loose tobacco being much cheaper than cigarettes is starting to be addressed.
“The tobacco industry is a perfectly legal and legitimate business. “
In some places prostitution is legal. Is that a good thing?
“They don’t force their products on you. You choose to use their products. “
Some would argue that once they became addicted to smoking, their choice to smoke was not of their free will. Many smokers want to quit and have tried quitting, but weren’t able to. Perhaps if cigarette taxes are increased much more, some of that money could be used to subsidize the cost of nicotine gum or other forms of nicotine besides tobacco. At least with nicotine gum a person gets their nicotine, but doesn’t irritate those around them. Nicotine is much less dangerous than other substances in cigarette smoke. Some find that using nicotine gum helps them quit smoking. There are dangers in using nicotine gum while still smoking though.