The feds want to increase the excise tax on cigars so they can give the money "for the kids"
This isn't a few cents, this is a $10 tax on a $5 cigar, and will drive out of business hundreds of locally-owned tobbaconists, as well as workers in Nicaragua & Honduras.
>> Cigar folks say the tax would double or triple the cost of a hand-rolled cigar and crush retail operators such as Lee, whose store is tucked in a shopping center on the northwest corner of Old Apex Road and Cary Parkway. But supporters of the increase say it's an effective way to raise money to cover health care for more children while anti-smoking activists say the mystique surrounding cigars masks a significant health risk.
The current federal excise tax rate on large cigars is about 20 percent, with a cap of about 5 cents. The Senate increase would raise the rate to more than 53 percent of the sales price charged by the manufacturer or importer, with a $10 cap. The House version would increase the rate to more than 44 percent but would have a far lower $1 cap. <<
July 31st, 2007 11:15am
It's pretty well a cliche that women hate cigars.
July 31st, 2007 11:21am
This is silly. Is the cigar market so huge that taxing it would generate any sort of meaningful revenue?
Tax cigarettes instead. That ought to pay for kiddie health care all by itself.
July 31st, 2007 11:24am
What's wrong with more debt? That's the republican way, make your grandchildren pay!
son of parnas
July 31st, 2007 11:26am
How 'bout instead of new taxes on whatever you can demonize this week, you fire a bunch of government workers and use their salaries instead?
Tax the smokes, if you like. I'll look forward to taxing whatever you like that most of us don't in the future...
People are blind.
July 31st, 2007 12:09pm
"fire a bunch of government workers and use their salaries instead"
Start with the President, the Vice-President, the Attorney General, the Secretary of State ... and work your way down.
July 31st, 2007 12:18pm
> , this is a $10 tax on a $5 cigar, and will drive out of business hundreds of locally-owned tobbaconists, as well as workers in Nicaragua & Honduras.
that doesn't make sense. a large tax will have the effect of leveling the playing field much more between native and imported cigars.
See: in an untaxed world a $5 imported cigar is only 16% cheaper than a $6 native one. Slap a $10 tax on both, the price differential is only 6%.
Anyway, there's more smoke than fire to all this cigar FUD:
"Cigars weighing more than three pounds per thousand ("large cigars") are taxed at the rate equal to 20.719 percent of the manufacturer's or importer's sales price but not more than $48.75 per thousand;"
$5 cigars will not be taxed more than $1.04. Not too sinful.
July 31st, 2007 12:34pm
>> Is the cigar market so huge that taxing it would generate any sort of meaningful revenue? <<
They're going after the cigar smokers because:
A) They're a niche market
B) There aren't a whole lot of them to complain
C) They're made from **EVIL** tobacco
D) It's for the kids
July 31st, 2007 1:26pm
Phil Valentine has spoken on this. Once again I find myself on the side of this conservative.
The man got sense... mostly.
If you let these asshats pass whatever tax on whatever behavior under the guise of being 'for the children' you can expect to have your ass taxed incessantly over all manner of things.
I don't care what you like to do, chances are you are in a smaller subset of people that like to do it and your concerns and objections won't matter to the majority. This is why it is crucial to take a stand against this crap no matter what you think of cigars.
'When they came for the...'
'Therefore, send not to know for whom the bell tolls. It tolls for thee.'
July 31st, 2007 1:50pm
Fuck. Cigars are such a small market to begin with, and they don't stuff them full of arsenic and cyanide. They should leave it alone.
What needs to be taxes is gasoline. $2/gallon and use the money to build a national rail system. This is a no brainer and not preparing for this is just really dumb.
July 31st, 2007 7:50pm
Don't laugh. There are considerations to fund the Highway trust fund with money gained from taxing the number of miles you drive, rather than the gasoline you use (or maybe in addition to the present gasoline tax).
It seems that people are buying more fuel-efficient cars, thus reducing "revenue". Never mind that you can run cars forever on asphalt without damage -- it's 80,000 lb trucks that tear it up.
July 31st, 2007 7:54pm
Of course the undelying trip records would not be useful for any other purpose, oh no, no, no.
July 31st, 2007 10:30pm
July 31st, 2007 10:31pm