OT - Attention All Cigar Smokers!!

[Lil bastard]

Originally Posted by bigb

If I understand the above correctly, then the 32.05% increase over the current tax means that the current tax rate is ~40% of the manufacturer's price? So, to take your example, on a cigar costing $80, the current tax is ~$32, while the tax under the new code will be ~$40?

Just trying to clarify what the numbers mean

OK... to clarify, this tax affects all tobacco and tobacco related products. Here is a list of these products, along with their current and revised tax costs:

• Product Current Rates Through March 31, 2009 / Rate April, 1 2009

• Cigarettes 39¢ per pack / $1.0066 per pack

• Large Cigars 20.719% of mfgr. price; cap of 4.875¢/cigar / 52.75% of mfgr.
  price; cap of $40.26 /cigar

• Little Cigars 4¢ per pack / $1.0066 per pack

• Pipe Tobacco $1.0969 per pound / $2.8311 per pound

• Chewing Tobacco 19.5¢ per pound / 50.33¢ per pound

• Snuff 58.5¢ per pound / $1.51 per pound

• RYO; Cigar Wrappers $1.0969 per pound / $24.78 per pound

• Cigarette Paper 1.22¢ per 50 papers / 3.15¢ per 50 papers

• Cigarette Tubes 2.44¢ per 50 tubes / 6.30¢ per 50 tubes

source: NATO - Nat'l. Assn. of Tobacco Outlets

Another concern of mine is that this tax will not be fully utilized for it's stated purpose, similar to the gains the Gov't. got from the Tobacco lawsuits. Some of that money went into building schools, roads and so on. A neat little trick the Gov't. uses is that if the revenues are not fully budgeted for a specific purpose, the 'unused' portion is then returned to the Gen'l. Fund. State Lotteries are prime examples. In my state, the wording on the Lottery Bill was that the proceeds were to be spent on Education and the Elderly. Last year, the state took in $250M in Lottery revenues, but only budgeted $60M each for Education and Elderly, $120M total. They then added the remaining $130M to the Gen't Fund to spend on all the pet projects they couldn't fund with taxes and other revenues.

Woodrow Wilson's VP, Thomas Marshall was immortalizrd by coining the phrase: "What this country needs is a really good five-cent cigar." I bet he never imagined that cigar taxes would rise to $40 per cigar! Just another Liberal Socialist idea gone wrong because the Fat Cats will still enjoy their cigars, they'll just pay the tax. But the little guy will be forced to give it up.

[bigb]

Many thanks for your detailed explanation - that clarified the confusion I had

[stephen wilson]

OK, if someone can afford to smoke $80 cigars, they can afford to pay the $40 tax!

[Brucelee]

Originally Posted by stephen wilson

OK, if someone can afford to smoke $80 cigars, they can afford to pay the $40 tax!

You're point being ...........?

[stephen wilson]

My point is, the tax isn't as high as these intentionally inflated prices would seem to indicate. I normally stay out of political discussions, so I guess I'll stick to that policy!
Steve

[Brucelee]

Originally Posted by stephen wilson

My point is, the tax isn't as high as these intentionally inflated prices would seem to indicate. I normally stay out of political discussions, so I guess I'll stick to that policy!
Steve

Well, I oppose taxes on basic moral principle. To me, I can see the value of the cigar and choose to pay or not pay. On the tax, I have no choice and I can't see any value.

Having said that, I don't smoke!

Still, I don't see any reason to stick it to folks just because they have the dough. Using that logic, anyone with less, can take from anyone who has more.

I think that is called robbery.

[stephen wilson]

I see your point. I do smoke Cigars occasionally. It suppose use taxes would be better if spread across all "non-essential" goods, not just the "bad" ones. Hell, I think a "flat tax" is a good idea, combined with use taxes. What's more fair then a percentage of what you earn? Most of us work hard, but some are compensated much better for it.

[23109VC]

Originally Posted by Lil bastard

OK... to clarify

• Large Cigars 20.719% of mfgr. price; cap of 4.875¢/cigar / 52.75% of mfgr.
  price; cap of $40.26 /cigar

• Little Cigars 4¢ per pack / $1.0066 per pack

so for the guy who just goes in to buy a nice cigar to smoke/enjoy - we CURRENTLY pay a MAX of 4.8 CENTS per cigar...but the new cap will be $40... and the tax rate will essentially more than double... so if a cigar costs $10, and the tax was about $2, now your $10 cigar is going to run you 12-13 bucks..

i see it this way - when I used to hit the cigar shop and figure I could get about 5 cigars for $50 - now i'm only gonna get 3-4.

can someone explain how my cigar smoking logically shoudl be taxed to benefit this program??? why not tax people who have kids...