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Senate Finance Committee Proposes Cigar Tax Hike
By Jesse | July 17, 2007 |
The proposed tax on hike on tobacco is part of the State Children’s Health Insurance Program (SCHIP), Senate Concurrent Resolution 21. (JCX-43-07). Substantially increase the cost of your cigars.
In an email from The Party Source, a large cigar retailer in Northern Kentucky. The demonstrate how much this will cost you.
Large cigars are taxed at the rate equal to 53.13 percent of the manufacturer’s or importer’s sales price but not more than $10.00 per cigar;
A $5 Cigar would be $7.50
A $10 Cigar would be $15.00
That would add up on a box of cigars and would hurt small shop owners and small manufacturers the worst. Please contact your Senator and Congressman today.
Update: From the St. Petersburg Times
Eric Newman punches the numbers on his calculator and gapes at the results one more time.
It’s no mathematical error: The federal government has proposed raising taxes on premium cigars, the kind Newman’s family has been rolling for decades in Ybor City, by as much as 20,000 percent.
Found via Digg.com.
Wizbang comments on SCHIP. So does Rotting Nation.
J. F. McKenna has a great article on the subject.
Isaiah Thompson has an update on what the giants in the cigar industry are doing to fight this.
Last night, the heads of over a dozen local premium cigar makers were gathered together in a single smoky room for the first time ever. Nick Perdomo, owner of Tabacalera Perdomo, a handmade cigar shop in Doral, hosted the cigar barons, among them
the owners of Camacho cigars, Toraño cigars, Drew Estate Cigars, and Alec Bradley
Cigars. (the Barzinis, Tattaglias, and Corleones couldn’t make it).“It’s the first time in the history of the industry that we had everyone in the industry in one room,” says Selim Hanono, a sales manager for Camacho Cigars. “These are our competitors, all of us compete for the same shelf space on a day to day basis – but we came together for one cause. This has never happened.”
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Topics: Cigar News |
July 17th, 2007 at 11:10 pm
I encourage everyone to call their Senators and cast their vote for “NO”. Unfortunately, the liberal congress wants your money anyway they can get it. Cigars is the answer. How dare you spend $5 on a cigar when you can feed the homeless in San Francisco.
July 18th, 2007 at 12:04 am
This is “for the children” According to the proposal though my kids would qualify for this I’m pretty much considered middle class by most standards.
July 18th, 2007 at 11:28 am
I just received a response for the Presidential Candidate, Barack Obama. His response was scary. The tax will happen. You must act now and call your Senators to counter Senator Obama’s vision of the future.
Checkout my site for his response. It will blow you away.
I encourage everyone to visit: http://www.cigarbeat.net/blog/. There you will find a template to use to eail your Senators. Also, you will find a link to their email addresses.
July 18th, 2007 at 11:29 am
Also, love the new site!
July 18th, 2007 at 11:42 am
You need to really post his response so everyone can see it.
July 18th, 2007 at 11:53 am
As requested, here is the Presidential Candidate, Barach Obama’s comments regarding the proposed tax.
Dear Dan:
Thank you for contacting me to express your opposition to the federal excise tax on tobacco products. I appreciate hearing from you.
We need tax reform in America, and I believe we can accomplish it. Our goal should be a tax system that is simple, easy to comply with, devoid of abusive shelters and loopholes, progressive, and fiscally responsible. Rates should be as low as we can afford for them to be, and we must promote national savings and investments in America’s long-term economic competitiveness. Part of this debate should address specific excise taxes, such as those placed on tobacco products. While I do not sit on the Senate Committee on Finance, which has jurisdiction over this issue, I will be sure to share your views with my colleagues.
Thank you again for writing. I hope you will continue to stay in touch.
Sincerely,
Barack Obama
United States Senator
July 18th, 2007 at 1:55 pm
I just a response from Senator Dick Durbin. he remarks are ven more scary than Obama’s. The cigar tax will happen unless you act.
For Sen Durnin’s comments please go to:http://cigarmonkey.com/
July 18th, 2007 at 5:52 pm
I also got a response from our Ohio Senator Brown. He says:
Dear Mr. Fleming:
Thank you for expressing your concerns regarding the possible increase in the federal excise tax on cigarettes.
Congress is considering raising the excise tax to provide funding for the State Children’s Health Insurance Program (SCHIP). SCHIP extends needed health coverage to low-income children. In 2005, SCHIP provided healthcare coverage to more than 6.1 million uninsured children. The additional revenue generated by the cigarette excise tax would, in part, maintain SCHIP coverage for those children already enrolled in the program, and extend coverage to the more than 6 million eligible children nationwide not currently enrolled. In Ohio alone, the expansion will affect approximately 219,000 uninsured children.
Through programs like SCHIP, we have made significant progress in the expansion of children’s health care coverage. Ten years ago, one in five of this nation’s children had no health insurance. Today that number has been reduced to one in ten.
SCHIP is a highly valued program, but I understand your concerns about funding this program with an excise tax on cigarettes. This tax has a tendency to be regressive, as do all taxes on consumption. And taxes may lead to inadequate program funding as revenues from cigarette taxes tend to decrease over time.
As the Senate considers legislation to raise cigarette taxes, I will be sure to keep your concerns in mind. Thank you again for contacting me.
Sincerely,
Sherrod Brown
My email back to him:
Mr. Brown,
My concern is with the 53.13 tax that will be added to cigar
purchases. This would be 156.4% over the current rate. And, while the
current tax on cigars is capped so no cigar pays more than $.05 in
federal taxes, the proposed legislation would increase the cap by
20,413% up to $10 per cigar. The combination of these two factors will
result in a dramatic increase in cigar prices in the U.S. and cause
hardship and injury to consumers and cigar makers alike. Many small
cigar retailers will go out of business and many others will leave the
country and move to internet sales.
Sincerely,
Vincent Fleming
Citizen
I will be posting it all on my site.
I read on another blog that Bush would veto it if it passed but that is the only place I have seen it.
July 18th, 2007 at 7:36 pm
They completely skirted how they would vote on the issue. Typical…
July 31st, 2007 at 9:00 am
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August 1st, 2007 at 2:32 pm
I’d appreciate some input from you guys if you know of any internet cigar dealers. It would be nice if we could just thumb our noses at all those politicians who think they know whats best for everybody, when they really know nothing.
August 1st, 2007 at 2:37 pm
This is a Federal Tax so internet dealers would also have to pay this tax, not only your local B&M’s.
August 1st, 2007 at 5:05 pm
Unless if they move to Mexico!
August 2nd, 2007 at 10:45 am
[...] stinkie: Unless if they move to Mexico! [...]
August 19th, 2007 at 8:16 pm
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