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Old 04-10-2013, 10:29 PM  
Taco John Taco John is offline
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Obama calls for cigarette tax hike of 94 cents a pack

At least he's paying it too, I suppose.


Obama calls for cigarette tax hike of 94 cents a pack

NEW YORK (CNNMoney) — President Obama’s call for a 94-cent-a-pack hike on federal cigarette taxes to fund early childhood education programs is controversial.

Anti-smoking groups applaud the proposal, but some tax experts and tobacco companies are against it.

The case for the tax. The tax is being presented as way to fund education and reduce smoking rates. It would raise roughly $78 billion over 10 years.
“The proposed tobacco tax increase would have substantial public health benefits, particularly for young Americans,” the president’s budget read. “Researchers have found that raising taxes on cigarettes significantly reduces consumption, with especially large effects on youth smoking.”

After a 62-cent-a-pack tax hike was passed in 2009, cigarette sales dropped by 10%, according to the Campaign for Tobacco-Free Kids.

There’s also little doubt that fewer people smoking is a good thing for society. Costs related to smoking amount to $193 billion a year in both direct medical payments and lost productivity, according to a Centers for Disease Control study done during the early part of the last decade. Smoking kills about 443,000 people each year.

Passing the tax “would be a giant step toward winning the fight against tobacco, the nation’s number one cause of preventable death,” Matthew Myers, president of the Campaign for Tobacco-Free Kids, said in a statement.
Why it may be a bad idea. The biggest argument against the tax is that it will fund early childhood education on the backs of the poor. Not only is the tax not progressive – it does not go up the more money one makes — but a higher percent of smokers are middle or low income.

The median household income for a smoker in 2011 was $27,700 compared to $45,761 for nonsmokers, according to Reynolds American, a cigarette maker which is, unsurprisingly, against the tax.

Nearly half of all smokers had a household income of less than $25,000 a year. Meanwhile, under 15% of smokers had a household income over $75,000.
“The idea of increasing taxes on low- to middle-income Americans at this time is ludicrous,” Bryan Hatchell, a spokesman for Reynolds American, said in a statement. “The effect of the payroll tax increase this year, along with higher gas and food prices, have hit hard millions of Americans who are simply trying to keep their heads above water financially.”

Anti-smoking groups counter that the poor are especially vulnerable to smoking’s ill effects, as they often lack healthcare and are less prepared financially to deal with an illness.

Cigarette taxes across the nation. Many smokers already pay a high tax rate for cigarettes. The current federal tax rate is $1.01 a pack, but the taxes don’t stop there. So Obama is proposing an increase to $1.95 a pack.
Some states and municipalities have also used cigarette taxes as a cash cow for years. In New York City, the country’s highest-tax area, combined state and local taxes add up to $5.85 a pack, according to the Campaign for Tobacco-Free Kids. In Manhattan, a pack of cigarettes can cost $14, while at an airport duty free shop they can be as low as $3 or $4 a pack.

But the taxes are low in other states. In Missouri, state taxes are just 17 cents a pack. The average price of a pack of cigarettes nationwide is $6, with taxes making up $2.49 of that.

Some economists question how wise it is to fund what will presumably be a long term program — early childhood education — with revenue that will likely fall over time. About 20% of Americans smoke, a number that has dropped considerably over the past several decades. The tax itself is specifically designed to get people to stop buying cigarettes.

Others say that while the tax won’t be to much of a burden on the overall economy, it will hit smokers and those that work in the industry hard. They say the president could raise far more money by focusing on spending cuts.
“It’s excellent politics, but it doesn’t make good economics,” said William McBride, chief economist at the Tax Foundation, a think tank that advocates for lower taxes.

http://wqad.com/2013/04/10/obama-cal...-cents-a-pack/
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Old 04-11-2013, 08:14 AM   #16
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I can't really judge that being a Christian and all. I am indifferent.
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Old 04-11-2013, 08:15 AM   #17
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You are an extremist.
I have no opinion on that, I'm not allowed to judge or be judged as that would seem judgemental.
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Old 04-11-2013, 08:21 AM   #18
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So they are going to fund a program by raising $78 Billion over 10 years. The funding estimate is based on current consumption levels because the CBO is not allowed to consider behavior changes. But, we are going to improve national health because people are going to change behavior.

Am I the only one that sees more spending and more debt in this equation? Why does the federal government feel so driven to provide funding for early childhood education? No money comes from the feds without rules, regulation and bureaucratic oversight.
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Old 04-11-2013, 08:22 AM   #19
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Originally Posted by Chief Faithful View Post
So they are going to fund a program by raising $78 Billion over 10 years. The funding estimate is based on current consumption levels because the CBO is not allowed to consider behavior changes. But, we are going to improve national health because people are going to change behavior.

Am I the only one that sees more spending and more debt in this equation? Why does the federal government feel so driven to provide funding for early childhood education? No money comes from the feds without rules, regulation and bureaucratic oversight.
Christian Brother do not judge, just submit to group think..It's really for the best and they have "free" cookies.
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"If the people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny." - Thomas Jefferson
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Old 04-11-2013, 08:23 AM   #20
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Wait - isn't this "discrimination" against smokers? I was told during the gay marriage debates that we cannot "discriminate" against one group of Americans. Violates equal protection! It's anti-American! You don't pick on any group you deem inferior!



Well Libs? Explain yourselves now.
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Old 04-11-2013, 08:27 AM   #21
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This idea worked like a charm in NYC. The city lost tax revenue and everybody buys their smokes on the black market now. Moonbats can't come up with any new ideas because they are mental cases.
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Old 04-11-2013, 08:30 AM   #22
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Obama must hate the poor.


He's never met a tax he didn't like though.
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Old 04-11-2013, 09:40 AM   #23
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Wait - isn't this "discrimination" against smokers? I was told during the gay marriage debates that we cannot "discriminate" against one group of Americans. Violates equal protection! It's anti-American! You don't pick on any group you deem inferior!



Well Libs? Explain yourselves now.
You are almost as dumb as shtspryr.

You choose to smoke. You don't choose to be gay, black, Hispanic, male/female. Is that really that hard to understand?
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Old 04-11-2013, 09:41 AM   #24
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You are almost as dumb as shtspryr.

You choose to smoke. You don't choose to be gay, black, Hispanic, male/female. Is that really that hard to understand?
...
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Old 04-11-2013, 09:41 AM   #25
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You are almost as dumb as shtspryr.

You choose to smoke. You don't choose to be gay, black, Hispanic, male/female. Is that really that hard to understand?
I think everyone chooses to do something that the majority of people don't do. It's what makes us unique. When one doesn't care about the minority being abused, one should not be upset when they become the abused minority.
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Old 04-11-2013, 09:45 AM   #26
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How much is a pack of cigarettes these days? Like $5?
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Old 04-11-2013, 09:46 AM   #27
KILLER_CLOWN KILLER_CLOWN is offline
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How much is a pack of cigarettes these days? Like $5?
Depends on where you live it's a tad bit over 5 bucks here in Kansas and in Chicago it's like what $10 per?
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Old 04-11-2013, 09:46 AM   #28
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How much is a pack of cigarettes these days? Like $5?
In MO. Closer to $10 on any coast. $15 in socialist NY.
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Old 04-11-2013, 09:49 AM   #29
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I think everyone chooses to do something that the majority of people don't do. It's what makes us unique. When one doesn't care about the minority being abused, one should not be upset when they become the abused minority.
I don't think they are being abused. Smoking costs us a ton of money in health care costs. If you don't want to pay the associated costs then you can chose not to smoke.
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Old 04-11-2013, 09:49 AM   #30
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Originally Posted by Comrade Crapski View Post
This idea worked like a charm in NYC. The city lost tax revenue and everybody buys their smokes on the black market now. Moonbats can't come up with any new ideas because they are mental cases.
Organized crime approves a tax hike.
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