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Single Largest Cigarette Tax Hike Goes Into Effect Wednesday President Obama signed a law early in his administration to raise taxes from 39 cents to $1.01 per pack of cigarettes and from 19.5 cents to 50 cents per pound for chewing tobacco.

Dan™: Real Change, Not False Hope March 30, 2009 09:02:38

CONSIDERING THE FACT THAT PRESIDENT OBAMA SMOKES, IS THIS CIGARETTE TAX HIKE HYPOCRITICAL?

AP: Sunday, March 29, 2009

WASHINGTON -- However they satisfy their nicotine cravings, tobacco users are facing a big hit as the single largest federal tobacco tax increase ever takes effect Wednesday.

Tobacco companies and public health advocates, longtime foes in the nicotine battles, are trying to turn the situation to their advantage. The major cigarette makers raised prices a couple of weeks ago, partly to offset any drop in profits once the per-pack tax climbs from 39 cents to $1.01.

Medical groups see a tax increase right in the middle of a recession as a great incentive to help persuade smokers to quit.

Tobacco taxes are soaring to finance a major expansion of health insurance for children. President Obama signed that health initiative soon after taking office.

Other tobacco products, from cigars to pipes and smokeless, will see similarly large tax increases, too. For example, the tax on chewing tobacco will go up from 19.5 cents per pound to 50 cents. The total expected to be raised over the 4 1/2 year-long health insurance expansion is nearly $33 billion.

Smokers are mulling their options.

Standing outside an office building in downtown Washington last week, 29-year-old Sam Sarkhosh puffed on a Marlboro Light. His 8-year-old daughter has been pleading with him to quit, he explained, and he has set a goal to give up smoking by his 30th birthday.

"I'm trying to quit smoking, and it could help," said Sarkhosh, an information systems specialist. "I don't think it will stop me from buying cigarettes every now and then, but definitely not as often." A friend who smokes Camels went out and bought four cartons in advance, he said.

The tax increase is only the first move in a recharged anti-smoking campaign. Congress also is considering legislation to empower the Food and Drug Administration to regulate tobacco. That could lead to reformulated cigarettes. Obama, who has agonized over his own cigarette habit, said he would sign such a bill.

Prospects for reducing the harm from smoking are better than they have been in years, said Dr. Timothy Gardner, president of the American Heart Association. The tax increase "is a terrific public health move by the federal government," he said. "Every time that the tax on tobacco goes up, the use of cigarettes goes down."

About one in five adults in the United States smokes cigarettes. That's a gradually dwindling share, though it isn't shrinking fast enough for public health advocates.

The Centers for Disease Control and Prevention says cigarette smoking results in an estimated 443,000 premature deaths each year, and costs the economy $193 billion in health care expenses and lost time from work. Smoking is a major contributor to heart disease, cancer and lung disease.

Public health officials are urging individual doctors and staff at telephone "quit lines" in every state to make the most of the tax increase by reaching out to smokers. But it's unclear how deeply the tax will cut into tobacco consumption.

Eric Lindblom, research director for the Campaign for Tobacco-Free Kids, says he expects a drop of at least 6 percent to 7 percent among young smokers.

Philip Gorham, who tracks the tobacco business for Morningstar, the investment research firm, said he expects an overall drop of 4 percent to 5 percent this year. What happens after that is less certain, especially as the economy recovers.

"I would expect a road bump this year," said Gorham. "But these companies will still be extremely profitable. I still think they will make their return on capital by wide margins in the long run."

Philip Morris USA, the largest tobacco company and maker of Marlboro, is forecasting a drop, but spokesman Bill Phelps said he cannot predict how big. Philip Morris raised Marlboro prices by 71 cents a pack early this month, and prices on smaller brands by 81 cents a pack. Other major companies followed suit.

The pricing moves raised eyebrows. "That's nothing more than greed," said Kevin Altman, an industry consultant who advises small tobacco companies. "They weren't required to charge that until April 1. They are just putting that into their pockets."

Responded Phelps: "We raised our prices in direct response to the federal excise tax increase, and people who are upset about that should find out how their member of Congress voted, and contact him or her."

Some policy analysts have questioned the wisdom of boosting tobacco taxes to finance health care for children. They argue that the fate of such a broad program should not depend on revenues derived from a minority of the adult population, many of whom have low incomes and are hooked on a habit. The tobacco industry is also warning that the steep increase will lead to tax evasion through old-fashioned smuggling or by Internet purchase from abroad.

But smoking control advocates such as Lindblom say tobacco taxes should be even higher. "There's a lot of room to go after cigars and smokeless," he said. "We are certainly hopeful that health care reform will include some more increases."

Standing outside a Washington department store, attorney Margaret Webster, 42, puffed on a Marlboro Ultra Light and lamented the fact that the government is reaching deeper into her pocketbook.

"I don't think we (smokers) like it," she said. "But I've heard so many people say they were going to quit when the price went up ... and they're still smoking."

http://www.foxnews.com/politics/2009/03/29/single-largest-cig...
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  • +12 raves samantha215 March 30, 2009 12:56:02
    samantha215

    None of the above

    I don't care if he raises the cost of cigs to 150$ a carton, this lying evil man is NOT going to control me.(as I typed that I was thinking if my husband saw it he would have a heart attack lol).

    For real though, no one helps my husband pay $1600+ a month for health insurance (for just the 2 of us)(so the argument that smokers raise the cost of health is not working for me).
    We don't have children and I am sorry but why should we have to pay for someone else's? It's already bad enough that we have to pay for welfare lovers and they way they continue to breed and then get even more money for each one they have.
    I am sick of the tax tax tax, it is bullshit.
    I know many people who will quit smoking over this, then they will have to find something else to tax the shit outta.
    Idiot oboy makes me sicker everyday.
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  • +1 raves
    Rusel April 08, 2009 19:04:30 (edited)
    Rusel

    None of the above

    "Single Largest Cigarette Tax Hike Goes Into Effect Wednesday President Obama signed a law..."
    -------------

    This is sheer idiocy.

    I don't smoke and I don't like to be around people who do.

    Throughout all of history, raising taxes on goods invariably leads to smuggling much as was the case during the 1920s Prohibition in this country. The government always responds by increasing the law enforcement, and its associated costs, to deal with the miscreants. If the tax is high enough then the illicit profits encourages organized crime to enter the market, thus worsening an already bad scene.

    The tobacco tax in New York City is now about $4.25 per pack. It is estimated that half of all tobacco products sold in NYC are from smuggling, despite stringent law enforcement efforts. Judiciously reducing the tax would eliminate the profit from smuggling and reduce its associated law enforcement costs without significantly impacting overall revenue.

    Attempting to control by taxes or otherwise, anything that the people want, has consistently proved to be fruitless and irrational, leading to a complete disrespect and disregard for the law as well as a loss of confidence in the government itself.
  • +1 raves
    Jack Sheet Rusel September 27, 2009 05:09:30
    Jack Sheet
    I whole heartedly agree with you, of course I do smoke, but never around people who object, not in my house, not outside. Its just polite.

    I would go a little farther then that, I would hope that anything that someone wants to do to them self shouldn't be illegal. Drugs, prostitution, whatever. There is already natural laws concerning them.
  • Jack Sheet Rusel September 27, 2009 16:23:48
    Jack Sheet
    A small Caveat about the society being burdened by the smokers healthcare

    OK, put aside the skewed numbers that say, if you smoke, every health care issue is because of that, no mater what you other habits might be. I just want you to use a little logic here.

    So if you just look at the smokers that die of smoking and add that cost up and call the the “burden” of smokers you will be wrong. There is two important facts that are easy to overlook.

    Everyone dies anyway. You spend on average 90% of all the money you are going to spend on healthcare in the last six months of your life on average. Lung cancer is infamously rapid, people are often gone in a matter of weeks after diagnosis, one thing you can say about lung cancer is that it is relatively cheap compared to many other ailments to die from. But not as cheap as the unmonitored acute heart attack, they are just about free. So it's hard not to be morbid when you talk about morbidity, but any death that isn't instant death costs a lot, smoker or not.

    Statistically smokers do die younger. That actually is a benefit to society, that is less social security and every other cost related to old age that taxpayers pay for.

    I have no trouble accepting the fact that smoking is unpleasant for many to be around, the argument a...

    A small Caveat about the society being burdened by the smokers healthcare

    OK, put aside the skewed numbers that say, if you smoke, every health care issue is because of that, no mater what you other habits might be. I just want you to use a little logic here.

    So if you just look at the smokers that die of smoking and add that cost up and call the the “burden” of smokers you will be wrong. There is two important facts that are easy to overlook.

    Everyone dies anyway. You spend on average 90% of all the money you are going to spend on healthcare in the last six months of your life on average. Lung cancer is infamously rapid, people are often gone in a matter of weeks after diagnosis, one thing you can say about lung cancer is that it is relatively cheap compared to many other ailments to die from. But not as cheap as the unmonitored acute heart attack, they are just about free. So it's hard not to be morbid when you talk about morbidity, but any death that isn't instant death costs a lot, smoker or not.

    Statistically smokers do die younger. That actually is a benefit to society, that is less social security and every other cost related to old age that taxpayers pay for.

    I have no trouble accepting the fact that smoking is unpleasant for many to be around, the argument about second hand smoke is very overblown (pun). The results from the major second hand smoke study was proven in a court of law to be false and the results legally repealed, but still often quoted

    Smokers with there lower social cost of healthcare and supplying all the tax revenue (what else it taxed like cigarettes?) are again unfairly demonized. Be certain that I am not under any illusion about the negatives of smoking, and there are many, but the untruths about smoking are of great consequence to the smoker and often give license to people to be rude and make false accusations to smoker, and pass laws that unfairly target smokers. If you had to pay similar taxes on happy meals, that cause an easy arguably greater and undeniable similar amount early death, it would cost you $100, remember the price for a pack of cigarettes before all the taxes is less than $1
    (more)
  • +1 raves
    ol_crank_arm April 05, 2009 20:55:35
    ol_crank_arm

    Obama is a hypocrite ...

    Change You Can Believe In! (And if you don't believe in it, I'm gonna tax the livin' crap outa you!)
  • +1 raves
    me April 01, 2009 23:23:14
    me

    Obama is a hypocrite ...

    on top of that he makes $250,000 a year. I doubt the cigarette tax will affect him and I doubt he'll quit smoking and we are already paying for his and his wife and children's health care so this matters to him not at all,.
  • +1 raves
    Dan April 01, 2009 19:27:57 (edited)
    Dan

    Obama is a hypocrite ...

    According to various media sources, most smokers are considered poor. I don't smoke, but I don't think Obama should punish smokers just to raise taxes to support his socialist agenda (redistribution of wealth, tax the people to support his voters, punish successful businesses and reward the unions which supported his presidential bid, and force mortgage companies to give loans to black Americans on the basis that all American should have homes - regardless if they can afford them or not).
    Most smokers are Democrats, so Obama is technically hurting his voters more than he is Conservatives!
    Smoke away America! Obama is counting on you and your increased cigarettes taxes. Puff, puff, puff!! smoke america obama counting increased cigarettes taxes puff puff puff
  • +1 raves
    ol_cran... Dan April 05, 2009 21:14:10
    ol_crank_arm
    Why these dunderhead pinkos and 'proletariat' commies don't see past the curtain, amazes me to no end.

    All taxation is borne by consumers! The producers are merely conduits, more or less complicit in the scam. The taxes laid on them go right into the cost of the products they produce or services they provide. Yet the idiots on the treadmills and hamster wheels don't figure out why they have to run faster and faster to stay in place!

    Some smart folks who saw this train pull onto the track 'invested' in a year's supply, so the tax payoff to the commies won't come as quickly as they anticipated.

    Exile the Teleprompter Puppet!
  • +1 raves
    keymanjim April 01, 2009 16:32:05
    keymanjim

    None of the above

    About three weeks ago I switched to an electronic cigarette. It doesn't use tobacco so there's no tobacco tax on it.
  • Sandie keymanjim April 02, 2009 06:02:10
    Sandie
    How does it compare?
  • neo Sandie June 08, 2009 10:35:55
  • +3 raves
    ThinkAboutIt! April 01, 2009 07:27:49
    ThinkAboutIt!

    Obama is a hypocrite ...

    Just another of the many steps Obammie is going to force on Americans in his quest for the destruction of Freedom.
  • +2 raves
    lil mama April 01, 2009 03:31:59
    lil mama

    Obama is a hypocrite ...

    Sooo if the smokers now start quitting what will happen to the s-chip that is gonna come from this tax hike and other programs like pre-school ect,,,,
    this was a bad idea to begin with I think...
    this is.... smokers quitting s-chip gonna tax hike programs pre-school ect begin
  • +2 raves
    Lanikai March 31, 2009 17:48:12
    Lanikai

    None of the above

    As long as they tax beer, wine, imported cheese, and liquor as well as luxury boats, potatoe chips and sodas, I am fine with it. Of course, I am starting the nicoderm program, so I willbe free of his tax.
  • +1 raves
    Dan™: R... Lanikai April 01, 2009 02:37:29
    Dan™: Real Change, Not False Hope
    LOL!

    Hey, that's one form of resistance. :)
  • +2 raves
    Cje March 31, 2009 17:35:43
    Cje

    None of the above

    Good job, Obama!

    I didn't vote this last election because I know the whole process is a scam.

    I'm casting about for a black market source for cigarettes. Now we can add cigarettes to the "drug war" (read "brought to you by the politicians, Citi, Wachovia et al) seriously, google Citibank and money laundering.

    We are losing our liberties. One "sin tax" at a time.
  • +2 raves
    patricia rocke March 31, 2009 13:32:44
    patricia rocke

    Obama is a hypocrite ...

    hyprocrite !
  • +2 raves
    RealTallWolf March 31, 2009 12:49:53
    RealTallWolf

    None of the above

    your tax hike on cigarettes are going to pay for insurance for children who don't smoke. What ever happened to if you can't afford to have children and that includes insurance for them then don't have children? why is it someone's responsiblity to pay a tax on a product not consumed by children to pay for children?
  • +1 raves
    Lanikai RealTal... March 31, 2009 17:52:30
    Lanikai
    I agree. Here is a great one for you. Our locel health department has a family that has 2 parents and 14 kids, they all have Tuberculosis and they live on section 8 housing, get food stamps, free medical and free dental. We are paying for their cradle to grave coverage and the health department isn't allowed to talk about birht control because the ACLU has said they have a right to as many babies as they want. they are costing Americas workers over $600,000.00 peryear with all of the socialservices, translators and other help they require. It would be cheaper to give them that much money one time and send them home with a NO RETURN order. Now we will have to pay for them and all of their kids forever.
  • tierney March 31, 2009 06:06:58
    tierney

    None of the above

    He's not a hypocrite because of this, no. But damn. Cigarettes just went up here this month about $3 a carton. And that was at the rez. I guess that was just the beginning. :(
  • +1 raves
    Dan™: R... tierney April 01, 2009 02:40:42
    Dan™: Real Change, Not False Hope
    And he promised he wouldn't tax the poor and middle class, didn't he?

    OOPS! I guess that was yet another Obama lie for political expedience.

    And get ready ... there's more to come. Next up: the carbon tax. Up to $3,000 more per year tax on ALL Americans ...

    Enjoy :)
  • tierney Dan™: R... April 01, 2009 03:57:14
    tierney
    I don't know, I understand the benefits of taxation. But maybe some of these extras should go straight to the problems people complain about. Non-smokers complain of smokers health care costs; so maybe the taxes should be used by smokers to smokers. Child health care is complained about by those not planning to have kids; so maybe a tax on disposable diapers and formula. Junk food addicts health care is a complaint for those who eat healthy so maybe a junk and fast food tax could go for that. At least it would make more sense.
  • Dan™: R... tierney April 01, 2009 04:59:36
    Dan™: Real Change, Not False Hope
    Well I don't have any kids, and I don't think I should be on the hook to pay for anybody else's kids.
  • tierney Dan™: R... April 01, 2009 05:23:52
    tierney
    And I know a lot of people feel that way especially if it comes from an even smaller (very much smaller and distinctly different subgroup) percentage than those that benefit from it. I think more thought needs to go into these kind of decisions.
  • +3 raves
    MyPupTaz March 31, 2009 02:31:03
    MyPupTaz

    None of the above

    I smoked for years and I stop yesterday and so far I am doing very well,I hope they go up to 20.00 a pack it will only make it easy for me to stay off them. smoked years yesterday welli hope 20 00 pack stay
  • +2 raves
    moonpie MyPupTaz March 31, 2009 03:20:14
    moonpie
    Seriously, I wish you the very best of luck.
  • +2 / -1 raves
    Graco March 31, 2009 01:34:59
    Graco

    Obama is a hypocrite ...

    More control. Wonder if the WH is a smoking environment now???! Gee let's see - where can we go next.............how about firing the CEO of a large corporation, um, say GM, oh that's right he already did that. I can only imagine what other corporate heads are thinking...........Good Lord, what is this country coming to???!!!
    Are you BHO "groupies" please with what you accomplished??
  • Stix Graco March 31, 2009 06:12:58
    Stix
    Why would the WH be a smoking environment? Obama quit smoking and fell off the wagon once and as he stated he was outside smoking as he doesn't smoke around the family...Some people looking for something to pick at. Well we have bigger problems than fools who nit pick
  • +2 raves
    Lanikai Stix March 31, 2009 17:53:29
    Lanikai
    BS, he has stated that there is a designated room for himto smoke in. He is not even talking about quitting right now, too much stress.
  • +1 raves
    Dan™: R... Stix April 01, 2009 02:43:05
    Dan™: Real Change, Not False Hope
    Oh, BS!!!!

    bs

    As a smoker, I've both heard and used that line before. He's already been caught falling off the wagon a few times ... not just once.

    He's probably smoking like a chimney AS WE SPEAK!
  • +1 raves
    Dan Dan™: R... April 01, 2009 19:32:18
    Dan
    But taxpayers are buying his smokes, like a bum bumming a smoke off of someone!
  • +2 raves
    Lanikai Graco March 31, 2009 17:52:53
    Lanikai
    He smokes in Biden office.
  • +1 raves
    Joseph March 31, 2009 01:20:48
    Joseph

    None of the above

    Let me preface this by saying I am not a smoker and never have been, so this doesn't affect me one way or the other.
    But Obama said those earning less than $200,000 a year wouldn't get a tax increase. That was clearly a LIE, because not all smokers make more than that. In fact, most smokers tend to be lower income.
    The Obama Kool-Aid drinkers will now change the subject and say even though the no-tax-increase was a lie, it's a good thing because it will prompt smokers to quit.
    But there's one very big problem with that. The premise for raising the tobacco tax was to fund a huge expansion in the State Children's Health Insurance Program (SCHIP). When the tobacco tax increase causes smokers to quit, the tax revenues to fund this SCHIP will go down, which means they will have to raise other taxes, grow the deficits even bigger, and/or print more worthless currency to make up the lost revenue.
  • +1 raves
    Joves the Instigator March 31, 2009 00:57:29
    Joves the Instigator

    None of the above

    Well here in Az the cigs are going up to $10 a pack. I guess there will be a lot of grouchy people on jobsites after this price jump.
  • +2 raves
    Dan™: R... Joves t... April 01, 2009 02:44:46
    Dan™: Real Change, Not False Hope
    I'm in AZ too, and I smoke. Way to stimulate the economy, eh?

    Kick the poor and middle class while they're down.
  • +1 raves
    Joves t... Dan™: R... April 01, 2009 02:52:46
    Joves the Instigator
    Well it stimulates the government coffers. What gets me is they claim they are for the poor but, in reality the less affluent are the majority of smokers. Also they will say how they poor alcholic and, drug addicts should be helped but, when it comes to smokers who are addicts, they hold crosses against them like the are Satan himself. What hypocrisy.
  • +1 raves
    Michael March 31, 2009 00:51:48
    Michael

    Obama is a hypocrite ...

    moderated...
  • Stix Michael March 31, 2009 06:17:08
    Stix
    The tobacco companies added additives to tobacco years and years ago to make them addictive. Before that the tobacco was not harmful but not addicting either and the profits weren't as large.

    Cigarettes are not good for your lungs, etc and that is a fact.You are comparing apples and oranges. We know many drugs have side effects that are harder on your body than the disease you are taking them for but that wasn't the topic.
  • Michael Stix March 31, 2009 06:32:35
    Michael
    moderated...
  • ol_cran... Stix April 05, 2009 21:27:41
    ol_crank_arm
    Ahh ... Not True! In the 17th and 18th centuries, when 'Indians' were invited to sail to England, their first question was how long the trip would take and provisioned themselves with enough tobacco to cover their ... need.

    While not strictly 'addictive', tobacco does induce a strong habitual use.

    It's deleterious effects do seem to be dependent on the user and it isn't unusual for a lifelong smoker to die in advanced age, of complications unrelated to the tobacco use.

    The tax is just a convenient excuse to suck money from a group's pockets without much hoopla from the larger population. They've been setting this thing up for decades by propagandizing smokers into iniquity.
  • +1 / -1 raves
    Louisa March 31, 2009 00:42:25
    Louisa

    Obama is a hypocrite ...

    Obama is a control freak. It's only been two months since he screwed up the oath of office. Can you even imagine what kind of world it will be when he has been in the White House for a year!!
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