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.
Because a package of Drum rolling tobacco (50grams) and Bugler cigarette tobacco is taxed now at $26 a pound and Captain Black at $2.88 a pound, and Gambler “pipe tobacco” is also.
What this tax will do, is equalize the cost of RYO tobacco and ALL pipe tobacco, with cigarettes on an equal basis. The cigarette tax goes up to $2 a pack. The Bugler cigarette tobacco tax and the Bugler “pipe tobacco” tax doubles to $50 a pound.
There’s about 1 gram of tobacco in a cigarette.
We use 3 to 5 grams to fill a pipe.
I’m sitting here ruminating about all this, and before me sits a $15 can of GL Pease Haddo’s Delight. Let’s say there are ten smokes in that can and that’s $1.50 a huge artisan pipe full.
Today the pipe tobacco tax is $2.88 a pound. That’s 18 cents an ounce, 36 cents a can.
The proposed tax is $50 a pound, $3.125 an ounce. Ouch!!!
Instead of 36 cents a can the tax will be $6.25 a can.
Time will tell how much putting a $3.125 an ounce tax on all pipe tobacco hurts the luxury brands, that already sell for about six or seven dollars an ounce.
But if that can of GL Pease was $25 I’d still buy it, and spend another dollar a smoke.
What it’s sure to hurt are the sales of Prince Albert at $3 for 1 1/2 ounces in those same liquor stores that carry pipe tobacco you request.
The working man with his Grabow might get ten smokes now at thirty cents a smoke.
Will he buy a ten dollar package of Prince Albert?
At that same store cheap cigarettes with a dollar federal tax a pack are $25.
He might buy a forty dollar carton of cigarettes instead, and spend four dollars a day to smoke a pack.
The worst part of the proposed tax is that it’s going to hurt pipe smokers who buy cheap OTC brands the most.