Cigar Tax Update
Saturday August 4, 2007
Both the U.S. House and Senate have passed their own versions of bills to continue, and provide additional funding for the State Children's Health Insurance Program, by increasing the federal excise tax on tobacco products - including cigars. Congress is now on vacation for the month of August, but they will attempt to reconcile their differences before the end of September, when the current program is scheduled to expire. A joint bill will then be sent to the President, who must approve the legislation before it becomes the law of the land. However, President Bush has threatened to veto this legislation, so both the House and Senate will need enough votes to override the veto. Therefore, at this point, anything is still possible.
Here are the latest proposed increases in the federal excise tax on cigars:
Current Tax: $.05 per cigar
House Version: 33% tax rate with a maximum tax of $1 per cigar
Senate Version: 53% tax rate with a maximum tax of $3 per cigar
Under the House version, the new tax would be $1 on cigars costing $3 or more, and 33% on cigars costing less than $3. Under the Senate version, the new tax would be $3 on cigars costing $5.65 or more, and 53% on cigars costing less than $5.65. Although the House version is less damaging to cigar smokers, a $1 tax still represents an increase of 2,000%, compared to a nickel. According to the current results of our ongoing opinion poll, 48% of cigar smokers would quit smoking if the tax was raised to $0.25 or more per cigar. If the tax was raised to $.050 or more per cigar, 80% of cigar smokers would stop smoking cigars. This would virtually put an end to the cigar industry as we now know it.
Unless you want to pay $25 to $75 more for your next box of cigars, the time to act is now!
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Cigar Tax Update: October 3, 2007
Here are the latest proposed increases in the federal excise tax on cigars:
Current Tax: $.05 per cigar
House Version: 33% tax rate with a maximum tax of $1 per cigar
Senate Version: 53% tax rate with a maximum tax of $3 per cigar
Under the House version, the new tax would be $1 on cigars costing $3 or more, and 33% on cigars costing less than $3. Under the Senate version, the new tax would be $3 on cigars costing $5.65 or more, and 53% on cigars costing less than $5.65. Although the House version is less damaging to cigar smokers, a $1 tax still represents an increase of 2,000%, compared to a nickel. According to the current results of our ongoing opinion poll, 48% of cigar smokers would quit smoking if the tax was raised to $0.25 or more per cigar. If the tax was raised to $.050 or more per cigar, 80% of cigar smokers would stop smoking cigars. This would virtually put an end to the cigar industry as we now know it.
Unless you want to pay $25 to $75 more for your next box of cigars, the time to act is now!
Cigar Tax Update: October 3, 2007
Comments
Seems to me if all those people will quit smoking cigars the tax will not bring any monies into the pot and the government will have to find some other law abiding citizen to tax.
i don’t believe as many people will quit smoking as projected, but (priorities vs income) will cause some to smoke a bit less. as a consumer the increase doesn’t scare me. i definately do not like it but so many of the things i enjoy have gotten expensive, i will find a way too deal with it, perhaps i smoke one too often anyway. but as a proprietor……..this will put quite a dent in my little mom and pop cigar shoppe. just the book keeping alone to track less than three and more than three dollar cigars sounds like a pain in the butt. it will shift the market, there will not be any 3 dollar cigars in premium shoppes, tobacco and convience stores will pick up that market. the big stores will get bigger and the small stores will dry up.
As a cigar tobacco grower, this a very serious issue to me. If this drastic tax takes hold, there will be no cigar industry left. Please fight for the farmer’s perspective!
What do you expect from democrats? They hate smokers more than they hate America, if you can believe that. The blackmarket cigars will be popping up like pot dealers on the corner. What better way to drive an industry underground. Only those selling cigars with cash only payments will survive. I will be buying mine with cash only to avoid the taxes.
Immediately after Hussein Obama takes office and doesn’t veto this bill (as his people say will happen), I’m sure cigar sales will (at least initially) drop. And most likely in the days and weeks before it goes into effect, cigar sales will most likely go through the roof. I don’t smoke a lot, but lately I have been buying more, just in case.
I would suggest if you haven’t already, invest in a very large humidor (500+ cigars). There will probably be some fantastic sales prior to this law. By the time the law goes into effect, I will have at least five years worth of cigars in mine.
How do ” We The People” go about STOPPING all of this Taxation with-out representation??