The math is more complicated than just adding the dollar amount of the tax increase to existing retail prices. The tax becomes part of cost, which is marked up at each stage in the chain to the consumer.
Proposed Tobacco Taxes
- Thread starter kanaia
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A couple of points:
-the tax increases being proposed are just the opening salvo in what will be a bitter struggle inside the Democratic Party. Every aspect is in play. The final legislation could be less onerous…or more. My personal guess is it will come down to the wire (ie the holidays) before it’s settled
-notice that the W&M Committee’s increases are an order of magnitude higher on pipe tobacco than cigarettes and smaller cigars. That’s no accident. Big Tobacco’s interest in the level of pipe tobacco taxation, and willingness to fight on behalf of the industry’s interests, is virtually nil. And why should it be otherwise? They have bigger fish to fry. I doubt the lobbyists for the big guys will waste a nanosecond on what happens to pipe tobacco
-in today’s world the importance of tobacco taxes in general (and pipe tobacco in particular) to the Federal budget isn’t large enough to bother Congress unduly if demand proves elastic and net receipts decline. On the contrary legislators will preen themselves over how effective they’ve been in reducing a social evil, and excrete meretricious economic analyses demonstrating how much money they’ve saved society by reducing smoking
-so with neither side giving a damn about our rounding-error corner of the world I wouldn’t expect much. If anything good does happen it’ll be pure serendipity. Not that there’s anything wrong with that. I’d rather be lucky than good any day
-the tax increases being proposed are just the opening salvo in what will be a bitter struggle inside the Democratic Party. Every aspect is in play. The final legislation could be less onerous…or more. My personal guess is it will come down to the wire (ie the holidays) before it’s settled
-notice that the W&M Committee’s increases are an order of magnitude higher on pipe tobacco than cigarettes and smaller cigars. That’s no accident. Big Tobacco’s interest in the level of pipe tobacco taxation, and willingness to fight on behalf of the industry’s interests, is virtually nil. And why should it be otherwise? They have bigger fish to fry. I doubt the lobbyists for the big guys will waste a nanosecond on what happens to pipe tobacco
-in today’s world the importance of tobacco taxes in general (and pipe tobacco in particular) to the Federal budget isn’t large enough to bother Congress unduly if demand proves elastic and net receipts decline. On the contrary legislators will preen themselves over how effective they’ve been in reducing a social evil, and excrete meretricious economic analyses demonstrating how much money they’ve saved society by reducing smoking
-so with neither side giving a damn about our rounding-error corner of the world I wouldn’t expect much. If anything good does happen it’ll be pure serendipity. Not that there’s anything wrong with that. I’d rather be lucky than good any day
I think the majority of everyone here has 3 lifetimes worth of tobacco stashed away, I don't know why this is a big deal having a tin go up a few dollars.
It makes a lot of sense to me. Same as not automatically putting a glass of water on a restaurant table when the patron doesn't want it.
Saves on water, energy, especially in the washing drying cycle.
Because it’s not 4 lifetimes worth!
Lmao, you are all sick. ?
Florida has a 90% tax per tin. So this additional federal tax would be tagged on top of that (and other state as applicable) taxes, correct?
To me it’s not about the money. It’s about greedy politicians slowly chipping away at our rights under the guise of “health and safety” or “think about the children”. It’s never “only a few dollars”, it’s never ending, and we’ll never see any positive results of the tax increases. They could quadruple the taxes on tobacco and our roads, schools, and healthcare will be substandard.
I’d rather SP raise their prices $4 a tin to give their workers a raise, than pay ten cents more in state or federal taxes.
Yes, it would be applied in addition to any state sales and/or excise taxes, although it's a bit more complicated that that as the federal tax typically gets applied at time of manufacture which also increases the markups applied during distribution and retail pricing.
Same issues with most taxes. NJ raised its fuel taxes like 23 cents per gallon in one jump a few years back which transitioned us from one of the cheaper states to top 4 most expensive. If I actually saw that money go to improved roads and bridges, I wouldn’t mind it. Most of it never does though.
I don’t mind taxes if there’s a measurable benefit from them instead of just being slushed into “programs”.
Anyone know what the effective date of the pipe tobacco tax increase would be, if approved???
I told myself I'd quit smoking camels when they went over 5 dollars. Didnt work, That was 4 dollars ago.....
Florida has an 85% tax on the wholesale price of pipe tobacco. Doesn't matter tin or bulk. They did this over a decade ago. I know that crap is coming to a city and state near you.
Oops that was the number I was thinking of. Not 90. Thanks for the clarification.
I’ve been done cellaring pipe tobacco for a long time now, however, this will still hurt me, I’m still very much a dipper. I already spend over $200 per month on it, I’ve got to give this shit up, not worth it anymore.
My father always told me that the tax on tobacco is bullshit. He gave an example of a single mother. Instead of giving up smoking, she’ll most likely continue to smoke, she’ll just have less money for her children. This rings very true today with my addiction.
My father always told me that the tax on tobacco is bullshit. He gave an example of a single mother. Instead of giving up smoking, she’ll most likely continue to smoke, she’ll just have less money for her children. This rings very true today with my addiction.
No worries, 85 or 90 we are still getting bent over.
Whoa! For some, $200 a month would be considered heavy cellaring ?
But yes, the govt never saw a tax they didn’t like.
Fuck 'em. If they drive up the taxes high enough, people will just import it under the radar from China and other countries that have reasonable pricing, like people do with Cuban cigars. Just by comparison, I've read that 10% or more of all Cuban cigars are ultimately sold to people in the U.S., despite the embargo.
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