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New cigarette tax is no April Fools’ joke

Posted Apr 01 2009, 01:21 PM by Karen Datko
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Many smokers aren't finding the cost of cigarettes a laughing matter. The federal tax on a pack jumped Wednesday -- April Fools' Day -- from 39 cents to $1.01. The tax increase is so big, it's being called "historic."

Higher federal taxes apply to other tobacco products, so even those smokers who have taken to rolling their own to save money can't escape them. (To see how your preferred product is affected, click here.)

The tax -- passed to fund an expansion of the State Children's Health Insurance Program -- is expected to prompt about 1 million smokers to quit.

What's the tobacco tax situation in your state? A table at USA Today lists the total state and federal tax burden in each state. New York leads the pack, so to speak, with a combined $3.76, followed by New Jersey with $3.58 and Massachusetts at $3.52.

(Any smokers planning to visit New York City should bring cigarettes from home. A pack there now costs more than $9. To help people quit, city public health officials are giving away free nicotine patches today.)

On the low side are South Carolina with $1.08 -- remember, that's state and federal combined -- Missouri at $1.18 and Mississippi with a penny more.  

Meanwhile, several states have already raised their tax on tobacco and many others are considering that move, including North Carolina (now $1.36 combined).

Some tobacco companies raised their prices several weeks ago. For instance, the price of a pack of Marlboros jumped 71 cents. Where the price settles depends on the company. Some may absorb part of the tax and others will make smokers carry the entire weight and more.

All of this is causing some grumbling. Brad Schiller in The Wall Street Journal called the tax unfair:

According to the Centers for Disease Control and Prevention, only one in five Americans smokes, so the excise targets a minority -- and over half of all smokers are low income, and one of four is officially classified as poor.

Higher prices have also caused a flood of calls to stop-smoking hotlines, The Associated Press reports. Need help? Check out SmokeFree.gov or the American Cancer Society's Guide to Quitting Smoking.

What do you think? Is the tax unfair? We think cancer sticks should have been taxed into extinction years ago, combined with a very strong public and private effort to help smokers quit.

Related reading:

Cigarettes could soon cost more

More ‘sin taxes' ahead as states scramble for money

In Oregon and elsewhere, beer tax hikes a-brewing

Comments

 

To those wanting to move to Europe, check their laws. Cigs cost over $14 per pack and public smoking is banned in many countries.

For those complaining about taxes and paying for the childrens health care act - smokers cost American taxpayers millions of dollars annually in medical and healthcare. I have the right to complain about your wasting of MY money.

BTW, I was a 35 year smoker who now has heart problems thanks to the tobacco companies and my choice to smoke.

It's your right to smoke, please keep doing it so my grandkids have health care too. Thanks, one less worry (and exspense) for me and my family.  

And Obama said he was not going to raise taxes on the poor and middle class, what a lier!

Get ready for a string of other taxes for products that are determined unhealthy, booze, sweets and anything else they can put in that category.

i quit back a few weks ago, thank god!

It will give another source of income for mexican gangs - to bring and sell cigarettes from Mexico, or to sell "imported ones" from US, which will leave US on paper only. Thats how a lot of russian mafiozos made lots of money in Germany

With all due respect, nearly everyone here is missing the point.  The government isn't interested in getting people to quit smoking.  They need the tax dollars that tobacco generates to fund government programs 'for the children'.  If their goal was to make tobacco extinct, all they have to do is pass a law.  They've had that power for years now, but using it means killing the goose that laid the nicotine-stained-egg.  Cigarettes will go underground (it's already happening), because enterprising Americans will find a way to make a good buck.  It will make the War on Drugs (snort-cough) seem like a walk in the park.  Long live the Nanny-State!      

Just plain stupid.....

We let the Automotive business go under while the "union" employees are making $80.00 per hour putting seats in cars or lug nuts on wheels...Say what you want about that, but it is absoulutly true.  Why put that high of a tax on cigerettes?  A lot of other things that would make more sense.

Let's say that 1 out of 10 people smoke (probably a high estimate).  They are taxing the crap out of these people.  Wouldn't it be better to find a tax is needed and spread it accross the board???

How about welfare? Put a higher end of year tax on that.  I just might get people off their butts and find a job a be a productive part of society.....All this is getting really carried away......

D.

I agree with ljc that slowlly reducing nicotine would be a good thing!!  I have been   Assmoking for over 45 years, i have tried patches, gum, and hypnotism, to no avail!!  i ALSO THINK THEY ARE BEING VERY UNFAIR TO SMOKERS!!  As far as the polluted air story, get a grip people!!  Ever been on an air base?  If you have, then you know how much fuel is dumped continuously....So good for the lungs!!  Also how about the pollution from cars, busses, trucks and diesel fuels...  Also, those people predicting other rights being taken away are right on!! How about caring about others faults and remember not everyone agrees with you either!  Everybodies addicted differently also.  good luck.

If people want to kill themself, that should be a persons right.  Since the goverment

likes to steal money from the people for whatever reason they need to do

with it, some people will go without food so they can buy cigarettes.  I hope

the goverment can deal with that.

To all the posters saying "It's my right to smoke, if I want to turn my lungs black, that is my business, not yours"..... ya know what? IT IS OUR BUSINESS. Cuz when you damn smokers light up, you aren't just hurting yourself, you are hurting everyone else around you. Not to mention, you make everyone else around you smell like total ass. Think about it. If you had the option to eat sh*t, would you? Sure, its your business. Now what if you had the option to rub that sh*t all over people around you? Would you wanna do that? Probably not. But that's exactly what you are doing when you smoke. You are making other people SMELL LIKE SH*T. To hell with all you smokers. I'm so glad smoking will be banned within 20 years. I hope you all die from lung cancer (which you will).

Here is a quick, easy solution. All smakers stop smoking right now. Don't buy any more cigs ever again. When that well dries up the feds will tax the next big killer Booze. So we all stop drinking. Next we go to twinkies and the like. We will soon all be healthy and older but since all of us sinners stopped our sinning, What will the feds have left to tax. Sex! You heard of the new device they want to put on your car to rax your miles? wait until you have to report your "frequency" of lovemaking. Singles of course will be taxed at a higher rate. This will also lower unwanted pregnancy and other sexual related problems. Now we have covered all the possible taxes I guess that the feds will have to start spending money the DO have instead of money they don't and stop making everyone else pay for the stupidity of Washington idiots.  I did forget to mention that as we run out of 'sin' industries to tax. We will have even more layoffs starting with the Nicotine merchants all the way down to the nursing profession (More healthy people, less heath care need.)  

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