Obama Budget Attacks Tobacco … Again
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Kevin Godbee - Apr 10, 2013
- 1 min read
Obama Budget Proposes $.94 Per Pack Federal Cigarette Tax Increase and Proportionate Increase in All OTP Tax Rates
Today, President Obama delivered to Congress his administration’s proposed budget that includes a $.94 per pack increase in the federal cigarette tax rate and an increase in all other tobacco tax rates by a similar proportion. This means that the Obama Administration’s proposal would raise the federal cigarette tax to $1.95 per pack (a 93% increase in the cigarette tax) and a similar proportionate increase in the tax rates on cigars, pipe tobacco, roll-your-own tobacco and smokeless tobacco products. If enacted into law by Congress, these cigarette and tobacco tax increases would go into effect on January 1, 2014.
These proposed cigarette and tobacco tax increases are estimated to raise $78 billion over the next ten years to fund the President’s initiative to extend preschool education to all four year olds from families with low to moderate incomes.
Below is the language from President Obama’s 2014 Budget Submission to Congress that summarizes the proposed cigarette and tobacco tax increases. The actual proposed tax rates are not referenced in the summary.
- Increase tobacco taxes and index for inflation.
- Under current law, cigarettes are taxed at a rate of $50.33 per 1,000 cigarettes. This is equivalent to just under $1.01 per pack, or approximately $22.88 per pound of tobacco. Taxes on other tobacco products range from $0.5033 per pound for chewing tobacco to $24.78 per pound of roll your-own tobacco.
- The Administration proposes to increase the tax on cigarettes to $97.65 per 1,000 cigarettes, or about $1.95 per pack, increase all other tobacco taxes by about the same proportion, and index the taxes for inflation after 2014. The Administration also proposes to clarify that roll-your-own tobacco includes any processed tobacco that is removed for delivery to anyone other than a manufacturer of tobacco products or exporter. The rate increases would be effective for articles held for sale or removed after December 31, 2013.
President Obama’s Entire Budget In One Chart
Written by Kevin Godbee
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Go back 25- 30 years ago, when Missouri Meerschaum was bought by three gentlemen, Michael, Larry, and Bob. Michael tells the story about one of the reasons they purchased 150 acres of land: to ensure they had enough corn to stay in business. The story goes like this: the local Missouri farmers had lost another crop of corn due to catastrophic weather. Things were getting desperate when it came to keeping the factory running because of the shortage of corn cobs, and Michael looked to California to grow some of the hybrid corn they use for pipes. He found several farmers willing to grow their seed, and once they were done, Michael found a truck driver who agreed to transport the corn from California to Missouri, but with a story like this, there has to be something. In this case, the truck driver only had one arm, his left arm. He drove three back-to-back trips from California to Washington, Missouri, reaching across his body with his left hand to shift gears. With the year’s most recent devastating floods and loss of corn, this was their only solution to keep the doors open, and Michael realized that he and his partners needed to secure their own irrigated land to grow their hybrid seeds. He found 150 acres, but his other co-owners were not entirely convinced it was their best option. Fast forward a year, and another massive flood in the existing fields caused that year’s corn crop to be lost again. The partners were ready this time, but the land price jumped an extra 200k. They finally managed to buy the irrigated property and secured the future of Missouri Meerschaum with those 150 acres. Celebrating 155 Years in Business This year, the 155th anniversary was hosted at the Missouri Meerschaum pipe factory in downtown Washington, Missouri, near where Lewis and Clark stopped and camped in 1804 on their way to Montana. This year’s festivities coincided with Washington’s Fall Festival of the Arts & Crafts, which brought thousands of people downtown to try food, buy arts, crafts, and other assortment of items in the quaint little town, and, of course, get tours of the historic corn cob pipe company. Missouri Meerschaum is a complete Farm-to-Table process You can smoke a corn cob pipe today because of an intense dedication to getting it right, from the non-GMO hybrid seed that the University of Missouri helped Missouri Meerschuam work on in the 1970s and 1980s to the way they harvest and remove the husks to the 2-3 years the cobs have to sit and dry out so they can be turned into a pipe. An interesting tidbit is that modern corn is nothing like the corn that was grown in our past; with modern farming methods, corn is grown for the number of corn cobs, not for size, and modern yields are usually 30,000 seeds per acre. The University of Missouri found out, through testing, that to get the larger corn cob, you need less corn planted, and the sweet spot for Missouri Meerschaum corn is around 18,000 seeds per acre. This is partly because corn will pull a ton of nutrients out of the ground, and there is only so much to go around, even with crop rotation. Thus, modern farming can do a number on your fields, and you’ll have much smaller cobs unsuitable for pipes. It can take six to upwards of eight months to shell all the corn that is harvested through the custom built walnut shelling system they have at the corn crib. Nothing goes to waste, either. All the corn kernels that are shelled go to this large silo pictured above that is sold to two places: ADM (Archer Daniels Midland), which does corn processing: From Wikipedia: The Corn Processing segment converts corn into sweeteners and starches, and bioproducts. Its products include ingredients used in the food and beverage industry, including sweeteners, starch, syrup, and glucose (dextrose). Dextrose and starch are used by the Corn Processing segment as feedstocks for its bioproducts operations. The other place where the corn is sold is Pinckney Bend Distillery, about 20 minutes down the road in New Haven, Missouri. The white corn that Missouri Meerschaum uses has a higher sugar content and is perfect for making a great whiskey. There, the corn is turned into glorious whiskey, which you can drink Missouri Meerschaum-grown corn whiskey while you smoke your Missouri Meerschaum corn cob pipe while sitting in the place that makes it all. Meta much? Unfortunately, the laws of the state of Missouri say they cannot ship outside of the state, and the current distribution is not large enough to reach most readers, but you can drive there and buy some bottles to bring home. Of note, aside from the great whiskeys they have, they also have a whiskey with some flavor to it called Apple Ambush, which, I kid you not, tastes like you’re drinking spiced apple pie. The Pinckney Bend Distillery offers a tasting flight for $15, which includes a glass. The flight includes eight or so different liquors and a tasty mixed beverage. When we stopped at the Corn Cribb, we checked out the two 1980s model pickers. Modern Combine/Harvesters don’t do the job needed—keeping a pristine cob that can be used for the pipes. From Start to Finish Cobs are stored for 2-3 years on the 2nd and 3rd floors of the factory, where a shoot that goes down to the first floor drops cobs ready for production. Each corn cob you smoke takes around a week to make. They leave the windows open at the factory, especially during the winter months, because it helps dry out the corn better. The cobs come down the shoot and are cut into the size they need based on their current production. Next, the […]
Welcome to The Pipes Magazine Radio Show Episode 629! Our featured interview on tonight’s show is with Danish Pipe Maker Mike Sebastian Bay. Mike got his start in pipe making when looking for someone to repair his father’s pipes in the Copenhagen area. He inadvertently found renowned pipe artisan Tom Eltang, and apprenticed under him for several years. He learned Tom’s signature rustication technique, and then made it his own. His pipe designs are also known for the poker shapes with “the bend” – after the forward tilt, there is another angle bent forward. At the top of the show, Brian will discuss everything about aging tobacco you will ever need to know.
Now that the gritty tooth of summer is loosening its grip a bit, the feel of fall is faintly signaling its changes just around the corner. Warm days and cool nights, which begin in higher elevations, tell trees that the weather is changing (no, Pundit is not a meteorologist. Just an interested watcher of trees!). Change in trees signals it is time to halt the production of chlorophyll. That’s the green stuff that gives tree leaves their color, doncha know! Cooler nights work to close the veins in leaves, producing more red than green color, or something. It’s like the legend Red Smith, sports columnist for several newspapers including the New York Herald Tribune and the New York Times, once sayeth: “Writing is easy. All you have to do is sit down at the typewriter, cut open a vein, and bleed.” Trees author their own stories in the fall. And that brings Pundit to something of a point here. Fall is for taking short walks (ahem, for some of us these days). A pipe in hand. Quick pipe puffing, ogling the beauty surrounding us. It’s free for the most part in neighborhoods. But big national parks are another matter these days. Charges have emerged for some visitors just arriving at a specific time! Money Ball! Pundit loves this time of year with a good aromatic blend, or a sweet Virginia with just a touch of perique or one of those special blends that Jeremy Reeves cooks up for Cornell & Diehl. I especially enjoy his English blends, and always the return of Golden Days of Yore, an annual (pull for its continuation), and a couple of other of Reeves’ Small Batch productions for SmokingPipes.com. Such as Steamworks, a flake with old Red Virginias, perique, and some oriental tobaccos. For a wonderful read on the versatile Virginia Red Flake, read SPC.com’s Chuck Stanion in his splendid story on “The Versatility of Red Virginia: Carolina Red Flake Sept. 20, 2024, in Tobacco Talk.” The piece is a Masters Class on blending Red Virginias, with even a state of Georgia version. It is so well worth reading. Reeves compares the versatility of Red Virginias to variations of different teas. There are so many great fall smoking blends that Pundit has a challenging time choosing what goes with a solid walk in the woods. At times, Pundit closes his eyes, reaches into the cellar, and picks out a batch of something. Maxim at Pipes2Smoke has said it best: Sept. 20, 2024 “On Sunday it will be the fall equinox, the sort of official start date. I like many others will start reorganizing my tobaccos. Fall means, to me, heavier and fuller tobaccos that smoke slower. English Mixtures, think Latakia, oriental tobaccos, and some full flakes with Latakia. And the pipe get(s) bigger to carry these more robust tobaccos. To me fall in the North East is the best pipe smoking time of year. No, death defying humidity so the mixes smoke far better in every way and we enjoy them more that continues till next spring. When it starts getting humid again. Not a big deal but it is fun to mark the passing of the seasons.” For me, It’s all about enjoying nature, both with pipe and tobacco, and a stroll through the colors. There are interesting stops along the way, such as a mighty stream, rushing toward its ultimate connection with a larger body of water. And just a quick note on the Madison River, one of Pundit’s recent trips to a beautiful legendary stream, and bucket list musts. This was one of those five-star trips. Only, it had been years in the making and realization. As Pundit has written before, I was a flyfishing-aholic! In my younger days, I waded rivers in Georgia, Arkansas, Missouri, Upstate New York, and the Upper Peninsula in Michigan. 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Welcome to The Pipes Magazine Radio Show Episode 627. Our featured interview tonight is with Aaron from Tobacco Pipe Diary on Instagram. Aaron is a 29-year old pipe smoker from Spokane, WA. His interview is part of our ongoing series of pipe smokers that are under the age of 30. He comes from a family of Japanese tea growers, and his aunt smokes a pipe, but that is not what got him started. He actually started with cigars, and then decided to smoke cigars while practicing the Japanese martial art of Kendo, which is a type of fencing that originated as a samurai warriors’ customary swordsmanship exercises. Eventually he started smoking pipes and he also sells restored estate pipes. At the top of the show we will have an Ask the Tobacco Blender segment with Jeremy Reeves. Jeremy is the Head Blender at Cornell & Diehl, which is one of the most popular boutique pipe tobacco companies in the USA.
Something has been rattling around in my noggin for years, the result of many late night conversations with a lot of folks in a lot of fields, like chefs, winemakers, coffee roasters, and especially other dedicated pipe enthusiasts. It seems like we’ve all got stories about how our palates have developed over time and with continued experience. For many of us, it’s not just that our tastes have changed through the years, but our perceived ability to taste has also evolved. While often this results in a deeper appreciation of our favored blends or styles of tobacco, other times it can result in a complete change in our preferences; we may find ourselves not liking something we’ve previously enjoyed, or craving things we never thought we liked. When I was fairly new to the pipe, I didn’t have much interest beyond fairly rich Latakia mixtures. I’d tried many different “aromatics,” and none of them did much for me. Though I could appreciate the way they smelled in the jar or in the room, their taste rarely delivered what their aromas promised. Similarly, I didn’t find much pleasure in Virginia blends, their flavors being more muted and too subtle to hold my interest. Even when I did smoke them, I’d nearly always follow up with a bowl of the smoky stuff to scratch that familiar itch. I tended to gravitate towards those bold, assertive flavors largely because my palate hadn’t yet developed a full appreciation of the nuances of subtler tobaccos. Plus, I just loved the way they smelled. Many have shared similar stories about their own early steps along the journey, though for some it’s been sort of the opposite; Latakia was too overwhelming to their taster, and they started out preferring more gentle fare. In retrospect, this makes sense to me. Being a bit hyperosmic, I craved tobaccos that provided a taste experience that lived up to the expectations established by their intense aromas. Things are rather different for me now. Though I still crave my long beloved, rich, heavy Latakia mixtures, I’ve learned to deeply appreciate and enjoy a much broader range of tobacco styles. What changed? In honesty, a lot of this is just the natural result of doing what I’ve been doing for a living over the last 25 years. Spending so much time focused acutely on tobacco cannot help but change one’s relationship to it. Concentrating on the minute differences between two batches of some variety, or how a tiny change in the percentage of one leaf over another can influence a blend makes my brain jump through different hoops now than it did when I started out. It’s the same for any of us who zoom our attention in on what we do. We all start out with pretty much the same basic sensory apparatus, but as we concentrate on what we’re tasting, over time our brains adapt to have both greater resolution, and to more quickly identify less obvious nuances. Think of it as building a sort of multi-dimensional network of neural connections, each of our experiences forming a set of individual nodes. The more attention we pay to those experiences, the more complex and densely interconnected the network becomes. We gradually become better able to associate different aspects of the subtle sensory inputs with one another, and the richer the experience becomes. Some of this happens naturally, of course, but the more consciously we focus, the faster we “learn” to appreciate novel subtleties, and the quicker these connections are traversed, allowing us to more easily distinguish one taste from another. That’s pretty much what’s happened inside my own gulliver over the last 25 years of blending, and the process continues to this day. I’m often asked how one can learn to identify and even put a name to all the flavors that different leaf and different blends can present. My advice has always been the same: Focus and take notes. Read reviews to see what others detect, and try to pick those flavors or aromas out. Your experience might be completely different, but their impressions can still be useful. The more information we have, and the more attention we put on our own experience, the more we’ll begin suss out those elusive tastes. To some, this seems like too much effort, too much like work, and that’s a fair cop. As I said, some of this just happens naturally, and there’s nothing at all wrong with just enjoying the natural evolution of our palates over time. But others may want to accelerate this process, or take it to a deeper level, and that’s where the note taking comes into play. By thinking about what we’re smoking, engaging our analytical machinery and putting our sensorial experiences into words, our attention gradually shifts to the more subtle notes we perceive, associating them in their sensory proximity to past experiences, even those unrelated to tobacco, In doing so, we build our own network in a more conscious fashion, and soon begin detecting things we’d never noticed before as our sensory landscape takes on more dimension, adding another aspect to the pleasures of the pipe. The pipe can be a pleasant distraction from a world which is too often complex and over-stimulating. But, as an almost meditative practice, puffing in a more mindful way, focusing attention on the array of pleasures that our seemingly simple pastime offers, keeping a few simple notes, we can take our enjoyment to another level. I certainly recommend it, at least occasionally, but only if you find it fun.
Higher prices are rough, but if they are making plans to do thinks like make an extra year of schooling with the money, that’s at least a sign that they won’t be illegalizing tobacco anytime soon. They need our $$!!
If we play it right, we could even offer some new taxes, to get some new great things in our country….including some more public smoking areas, perhaps even a few indoor spots!
I never thought it would be banned – just taxed like crazy. That is what has happened in every country other than the US. I don’t see any positive in this at all, just darkness and pain for the pipe community.
207 lbs and counting . . .
You are delusional.
IMO the only legitimate reason to over-tax tobacco products is to support a completely public health care system, and even then, only to a certain extent. Using people that have an dependance and a certain substance, like smokers(or alcoholics, etc.)to foot more than their fair share of the tax bill, by taxing said substance and counting on the fact that a large number of them won’t be able to quite when the taxes increase, is morally dubious. Sadly it is the way politicians world-wide think, using people’s weaknesses to exploit them. Now I’m depressed!
From a post in the PM Forums:
“The pipe smoking lobby in Washington is small, compared to the cigarette and cigar lobbyists. Actually, non-existent, from what I can find. I’m wondering why blenders like C&D, McClelland, and GL Pease aren’t going to bat, trying to put a voice in Washington for the pipe smokers in the country. And not just the blenders, but the retailers, both B&M and internet. It is, after all, their livelihood…”
I could never understand this, either. All I see is a wringing of hands, bend over and take it. If there is a “pipe smoking lobby,” it’s not just small, it’s infinitesimal to non-existent. Look, I’d love to be wrong about this and be shown otherwise. Where is OUR CRA?
The only way we have a chance is if the tobacco industry and all users of all types stand together. They will never outlaw tobacco but taxes us to death they will do. Everyone needs to let their voices be heard. The dem. and rep. may fight and change many parts but the tobacco taxes they want fight about unless they hear from us.
I believe that any taxation should benefit those taxed. Anything else is oppression, plain and simple. The politicians may pretend that this tax is for one reason or another. The real reason is a mean spirited disregard for smoker’s rights. There is a nasty punitive tone to this type of legislation. It is time for a tax rebellion.
This sort of idiocy is something that could literally “come around” and bite the FDA in the tail. if indigenous Americans find out about what COULD be to come…
…does anyone here think that Native Americans from tribal ethnicities that do have tobacco-related and based traditions going back into prehistory — most of whom seem to live east of the Rockies — are going to tolerate having another piece of their tribal traditions taken from them, after a half a MILLENIUM of maltreatment at the hands of European-ethnicity immigrants, and their descendents?
This COULD get, as they say, “interesting” if the human rights issue regarding the “other tobacco products’ taxation explosion” repeatedly comes up in talks over Obama’s budget “priorities” in the coming months…!