Starting April 1, a Federal excise tax will go into effect for most tobacco products. Here are some of the most relevant increases (full list here):
- Old Cigarette Tax = 39 cents. New Cigarette Tax = $1.01
- Old Chewing Tobacco Tax = 19.5 cents. New Chewing Tobacco Tax = 50.3 cents.
- Old roll your own tobacco tax = $1.09 per pound. New roll your own tobacco tax = $24 per pound!!!!
Ok, so the arguments for taxing things that harm society and people are pretty clear. It creates an economic deterrent; it pays for indirect and long-term costs borne by the government and creates an incentive for the companies in that industry to diversify into other non-taxed goods.
It seems to me that the 2400% increase in roll your own tobacco represents the result of lobbying efforts by big tobacco. This is total speculation, but most of the tax increase range from 50% to 200%. Why is there such a dramatic increase in roll your own tobacco? Do big tobacco companies not make high margin on the roll your own product? Can anyone explain?
Either way, this is a significant change in the price of tobacco, for better or worse. Will these new taxes change your consumption of tobacco?
[via the Hook] [pic from Chris Schroeder]
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- Charlottesville Electricity Prices to Increase 20%
- County Budget to Increase 8.5% over Last Year
Speaking of taxes, I was at Mono Loco last night and noticed on the bill we were only charged 5% tax and not the usual 9%. Did they stop adding the meals tax to restaurant food?
That doesn’t sound right
The bill was $40 and no shit, the tax was $2. It should be about $4, right? There’s the 4.5% sales then the 5% meals tax normally.
ML is THE SHIT. But yeah, ciggie taxes, that’s lame. As long as they don’t raise taxes on booze, I’m cool.
If true (and I’m not doubting anyone) this is the way to get shut down by the city. The tax man must be paid.
Oh fuck. I wasn’t trying to get ML shut down. Noes!!!!
perhaps it was separated into two separate tax lines. I would be kinda of shocked if they weren’t collecting it.
There was only one line for tax. And the tax was ~5%.
Perhaps they over extended their salsa budget into toxic derrivative notes and are now covering their ass ala Bernie Made-off. How much you wanna bet a crack team of hook reporters are on there way over to ML for lunch with calculators in holsters in hopes of not having cover yet another twenty year old murder again this week? Wait, what are we talking about again? Ah yes. Smoke tax. I smoke, like turtles, and support the tax.
@11 you love turtles?
That shoe was just asking for it, what with its laces all undone and whatnot.
Then again, turtles get pretty pissed when the object of their desire wont give it up.
/cough cough cig tax wharrgarble
@12 – I was going to post that on the FFA last night, but couldn’t find the flippin’ thing.
/shoe-screwing turtles making squeaky toy noises are the shit.
I’m just waiting for the day when someone tries to impose a tax tax.
I just did my taxes, and found them taxing. But it may just be me.
2400%? Sounds like a hippie-tax to me.
Then they came for the hippies,
I did not speak out;
I was not a hippie.
Beer tax may go up 1900% in Oregon. I blame the military-industrial complex. Saw it on 24.
That’s right, a $3.00 beer will cost you $5703.00. j/k! Huffy Post did the math wrong:
http://www.huffingtonpost.com/2009/02/16/oregon-beer-tax-of-1900-p_n_167318.html