More Tobacco Bad, Taxes Good Legislation

[JimVH]

Full Article: New Bill Seeks to Dramatically Increase Federal Taxes on Tobacco Products

This would bring a 1650% increase in pipe tobacco taxes.

Here’s how the tax parity, as defined by Section 5701(g) of the Internal Revenue Code of 1986, could change for each product category:

Small Cigarettes: From $50.33 to $100.66
Large Cigarettes: From $105.69 to $211.38
Roll-Your-Own Tobacco: From $24.78, amended to $49.56
Pipe Tobacco Tobacco: From $2.8311 cents to $49.56
Smokeless Tobacco: In paragraph (1) of Section 5701(e), from $1.51 to $26.84; paragraph (2), from $50.33 cents to $10.74
Small Cigars: From $50.33 to $100.66
Large Cigars: From 52.75 percent to $49.56 per pound and a proportionate tax at the like rate on all fractional parts of a pound but not less than 10.066 cents per cigar

[adauria]

Disgusting. Here's hoping it fails (along with the rest of the tax hikes).

I wish it was clear what quantity that pipe tobacco tax applies to in the article. Is that per pound?

-Andrew

[424cat]

Ammunition and Tobacco. Taxes is the easiest way regulate both

[JMG]

Already wrote my reps about it.

[tuttle]

Holy crap!

This had better be an April Fool's joke...

[daveinlax]

I can’t believe tax parity and a mail order ban didn’t happen years ago. I’ve been saying this for years, 99% of “pipe tobacco” sold is RYO cigarette tobacco relabeled to avoid taxes. Did anyone think Big Tobacco was going to let this happen?

[SlowToke]

It's sad. Thankfully, I'm set for the rest of my life barring a house fire or mold infestation. If this passes, it would likely be the proverbial nail in the coffin.

[Sir Moose]

As if that wasn't enough...

Washington State Lawmakers Consider 1,000% Tax Increase on Tobacco Businesses

Lawmakers in Washington are exploring an unusual way to affect nicotine consumption and increase taxes on tobacco products sold in the state. Instead of increasing the excise tax rate, which is currently $3.025 per pack of 20 cigarettes, sponsors of HB 1550 are suggesting increasing the Business & Occupations (B&O) tax on tobacco manufacturers and wholesalers by 1,000 percent.

[joegoat]

There will be many more home growers. Excessively taxing or outright banning something only creates a black market.

Quando Omni Flunkus Moritati - When all else fails, play dead.

[Del]

There will be many more home growers. Excessively taxing or outright banning something only creates a black market.

Quando Omni Flunkus Moritati - When all else fails, play dead.

Marijuana will be legal over-the-counter everywhere. And tobacco will be black market contraband.

This is bizarro, just like everything else in soviet amerika.

Might as well talk about the virtues of race- and gender-identity lessons for grade-schoolers.... and the evils of taking your children to church.

[durangopipe]

Unbelievable.

[tuttle]

There is a link from the article that makes it easy to contact your Senators about it.

here it is:

https://oneclickpolitics.global.ssl.fas ... o_id=12153

[FredS]

There will be many more home growers. Excessively taxing or outright banning something only creates a black market.

Quando Omni Flunkus Moritati - When all else fails, play dead.

Marijuana will be legal over-the-counter everywhere. And tobacco will be black market contraband.

This is bizarro, just like everything else in soviet amerika.

The point you miss is that both products will be legal, and both products are/will be heavily taxed. "Sin taxes" have always been a popular way to encourage abstinence on the one hand, and increase public welfare on the backs of those who don't abstain on the other hand. Tobacco, alcohol, gambling, and weed are all yuge money-makers for government.

As we see here in the high country, there's still a black market for un-taxed weed and there will one for tobacco when taxes put the legal stuff out of reach of some. I can also see big tobacco aligning themselves with natives in order to create a gray market and sell on their reservations just like big gaming does with casinos. In CO, it's legal to grow a limited amount of pot for 'personal use' and we might see the market offering grow systems and even home topping and infusion kits for diy pipe tobacco grown in your basement or bedroom closet. How about 'community gardens' in urban areas? Maybe you could hit up the farm stand for some tomatoes and a few unprocessed leaves every Saturday morning? I envision all sorts of scenarios for the future of tobacco, and in none of them do I see it going away.

[Del]

There will be many more home growers. Excessively taxing or outright banning something only creates a black market.

Quando Omni Flunkus Moritati - When all else fails, play dead.

Marijuana will be legal over-the-counter everywhere. And tobacco will be black market contraband.

This is bizarro, just like everything else in soviet amerika.

The point you miss is that both products will be legal, and both products are/will be heavily taxed. "Sin taxes" have always been a popular way to encourage abstinence on the one hand, and increase public welfare on the backs of those who don't abstain on the other hand. Tobacco, alcohol, gambling, and weed are all yuge money-makers for government.

As we see here in the high country, there's still a black market for un-taxed weed and there will one for tobacco when taxes put the legal stuff out of reach of some. I can also see big tobacco aligning themselves with natives in order to create a gray market and sell on their reservations just like big gaming does with casinos. In CO, it's legal to grow a limited amount of pot for 'personal use' and we might see the market offering grow systems and even home topping and infusion kits for diy pipe tobacco grown in your basement or bedroom closet. How about 'community gardens' in urban areas? Maybe you could hit up the farm stand for some tomatoes and a few unprocessed leaves every Saturday morning? I envision all sorts of scenarios for the future of tobacco, and in none of them do I see it going away.

Simple truth is that it doesn't matter whether the product is illegal or simply taxed at an onerous rate. Both result in vigorous black market trafficking.

What we will lose are the legal jobs and producers of premium products. Like we lost McClelland.

Rusty liked to remind us that the European manufacturers of premium pipe tobacco were also dependent on the American market for adequate volume, because Europe pipe tobacco is already taxed at onerous rates.
===================================

I need to get JMG to teach me how he cured tobacco and rolled home-made cigars in PNG.... Just so I have something to pass down to my grandchildren.

Customs of tobacco enjoyment have evolved quite a bit over the centuries since Columbus met a native chief smoking a monster stogie.

If we have to go back to pioneer days and homegrown tobacco, perhaps making snuff will return as a cottage industry.

[Hovannes]

I wonder if the cartels will start black marketing in Maltese Falcon and Squadron Leader?

[JMG]

Disgusting. Here's hoping it fails (along with the rest of the tax hikes).

I wish it was clear what quantity that pipe tobacco tax applies to in the article. Is that per pound?

-Andrew

Not sure it would matter since we have to buy it from a distributor and they certainly will not be buying in small enough quantities to fly under the tax increase. Thus, it will be reflected in our cost.

[JMG]

There will be many more home growers. Excessively taxing or outright banning something only creates a black market.

Quando Omni Flunkus Moritati - When all else fails, play dead.

Marijuana will be legal over-the-counter everywhere. And tobacco will be black market contraband.

This is bizarro, just like everything else in soviet amerika.

The point you miss is that both products will be legal, and both products are/will be heavily taxed. "Sin taxes" have always been a popular way to encourage abstinence on the one hand, and increase public welfare on the backs of those who don't abstain on the other hand. Tobacco, alcohol, gambling, and weed are all yuge money-makers for government.

As we see here in the high country, there's still a black market for un-taxed weed and there will one for tobacco when taxes put the legal stuff out of reach of some. I can also see big tobacco aligning themselves with natives in order to create a gray market and sell on their reservations just like big gaming does with casinos. In CO, it's legal to grow a limited amount of pot for 'personal use' and we might see the market offering grow systems and even home topping and infusion kits for diy pipe tobacco grown in your basement or bedroom closet. How about 'community gardens' in urban areas? Maybe you could hit up the farm stand for some tomatoes and a few unprocessed leaves every Saturday morning? I envision all sorts of scenarios for the future of tobacco, and in none of them do I see it going away.

Simple truth is that it doesn't matter whether the product is illegal or simply taxed at an onerous rate. Both result in vigorous black market trafficking.

What we will lose are the legal jobs and producers of premium products. Like we lost McClelland.

Rusty liked to remind us that the European manufacturers of premium pipe tobacco were also dependent on the American market for adequate volume, because Europe pipe tobacco is already taxed at onerous rates.
===================================

I need to get JMG to teach me how he cured tobacco and rolled home-made cigars in PNG.... Just so I have something to pass down to my grandchildren.

Customs of tobacco enjoyment have evolved quite a bit over the centuries since Columbus met a native chief smoking a monster stogie.

If we have to go back to pioneer days and homegrown tobacco, perhaps making snuff will return as a cottage industry.

It was easy to grow in Hewa because the ground was so stinking fertile and we had constant temps and plenty of rain year round. Here will be a different story. As far as techniques, check out fairtradetobacco.com. They have a wealth of information.

[coco]

I'm guessing this will put a bowl of tobacco at about $3-4. However, you won't actually be able to buy the tobacc at any price (legally), since this will shut down the blenders.

[Jocose]

I didnt read the OP in fear of getting upset.
.

[coco]