As of April 1, 2009, Just 20 Cigarettes Will Cost an Average of $9.00
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On April 1, the per-pack federal excise tax on cigarettes will rise from 39 cents to $1.01. This new federal legislation translates to about a 20% raise on retail cigarette prices. It may sound like a small tax increase, but that would raise the cost of a carton of cigarettes by over $6.00.
I would like you to think about these questions before reading this article:
- Should everyone that says a cuss word pay a “special” fine to counteract church’s having a tax exempt status?
- Should everyone that buys fast food pay a “special” tax because Medicaid and Medicare have so many weight related health care cost claims?
- Should everyone that buys pornography pay a “special” tax to counteract the governments cost related to teen pregnancy?
- Should everyone that buys an alcoholic beverage pay a “special” tax to fund SSI because so many children born with fetal alcohol syndrome have handicaps?
- Should everyone that goes to a gambling establishment pay a “special” tax to fund government housing since so many people loose their home to gambling addictions?
Say What? $9.00 For Twenty Cigarettes!
On April 1, the per-pack federal excise tax on cigarettes will rise from 39 cents to $1.01. This new federal legislation translates to about a 20% raise on retail cigarette prices. It may sound like a small tax increase, but that would raise the cost of a carton of cigarettes by over $6.00. Keep in mind, the each state also has a “sin tax” cigarette tax. The average state cigarette tax is $1.19. State tobacco-tax collections for 2007 totaled $15.26 billion.
However, 17 states have already announced that their state cigarette tax is set to increase this year by as much as four times. With the new federal taxes in place, and if all the states raise their cigarette tax four times the current rates, the average cost of just one pack of cigarettes will be over $9.00 per pack.
Why Is The Government Making Laws That Cut Jobs?
On another note, tobacco companies account for 1.2 million jobs in the United States. People may find the tobacco industry deplorable, but they now plan to cut 117,000 jobs in response to the federal tax hike. Is it really the best time to put 117,000 people in the unemployment lines?
Smokers Flip The Bill For CHIPS
Washington’s rationale behind this astounding targeted tax increase is simple- The federal State Children’s Health Insurance Program (CHIPS) must have means to fund a $32.8 billion expansion. Since smoking is bad for users, higher prices will discourage new users, the economy is bad, and the federal budget is about as balanced as a polar bear vs. and ant… Washington has decided to target smokers to pay for CHIPS.
New Era Of Discriminatory Taxation
Most people agree that CHIPS is a needed program. I personally feel that CHIPS is a wonderful program, my handicapped child was actually on CHIPS for over 2 years while we battled to get her SSI benefits. Almost every smoker will concede that smoking is bad for their health. Still, I do not see how anyone can agree with this blatant discriminatory taxation against JUST smokers. There are plenty of “sins” to tax. We all have some sort of vice. So, why just target one vice? What makes cigarettes so bad, compared to other vices, that they must solely flip the bill for CHIPS? Remember those questions at the beginning of this article?
Cigarettes Bad… Alcohol, Porn, Smokeless Tobacco, Gambling, and Overeating Okay
One of the rationales that lawmakers used to enact this cigarette tax was a concern about ballooning health-care costs related to smoking. However, I am a nurse, and I can tell you that the statistics that organizations (like the national Campaign for Tobacco-Free Kids) use are skewed. For example, if a patient develops emphysema, their medical chart will read “secondary to tobacco use,” if the patient smoked.
However, if a patient develops diabetes, their medical chart will not read secondary to eating massive amounts of fast food. If a patient has renal failure, their chart will usually not read secondary to alcoholism. Of course, cigarettes cause a multitude of secondary diseases which create a huge health care cost; but, so does alcohol, smokeless tobacco, gambling, overeating and unhealthy eating habits, promiscuity, etc..
What About The Innocent Lives Affected By Your Vice?
Another rationale that lawmakers spew is that second hand smoke effects non-smokers and fetuses. True, a tax hike will discourage users, and preserve the health of innocent bystanders. But, where is the tax hike to preserve the innocent lives lost at the hands of drunk drivers, fetuses affected by fetal alcohol syndrome, lives lost to suicide due to gambling debts, etc…?
In My Opinion…
I am not a smoker, and I do not condone smoking. I just feel that it is unjust to make ANY targeted group pay a “special” tax for a legal vice. If smoking and resulting damages are so important to legislative bodies, then they need to make tobacco illegal. It is hypocritical to say: “Smoking is bad for you, but we will allow it….as long as we can exorbitantly tax it.”
Furthermore, if we as a society allow the government to pick and choose what legal behaviors they unfairly tax, we are opening the door to tyranny and dismissal of inalienable rights. Who knows, maybe the next targeted vice will be one you have. The world is just full of greedy, lustful, slothful, envious, gluttonous, wrathful, and/or prideful people, but does that mean the government should be allowed to tax them?
I’d personally agree on the increase price of tobacco since it’s not good for our health. I think this is a good measure to discourage people smoking. However, besides the tax incurred on tobacco, the related lawmaker should also impose tax on other alcoholic drinks, gambling and etc. I’d strongly against the tax to be incurred on “special” targeted person, and the government should understand the situation of the people who really strive hard to survive during this icy situation. Since the tax is unavoidable, just make it affordable by a large group of low and medium income families, so that it won’t worsen their present living conditions.
That is insane !! Very interesting topic.
You bring up good points about taxing other unhealthy habits.
I always look forward to hearing your opinion, Jo. You are such an intelligent woman and present a strong and logical argument here. BRAVO!
Bravo on your take on this issue, and on other issues you’ve brought up! It’s not fair for smokers to pay this increase alone, as you have mentioned such as gambling, drug uses, and alcohol..
An excellent argument that is also very wise!
I think it would be better if the prices for cigarettes would be much higher so that users would take a second thought wether to spend much to this killer vice or save the money for other significant purposes.
great views. nice post.
Hello, Oliver,
Very strong point and view you brought up here. Excellent work-I know a smoker in my immediate family; the prices for cigarettes now is becoming astonishingly high.
Great post; I haven’t read many articles on this topic.
-Fresh Writing
This is crazy. $9.00 a pack? I would never even imagine paying that.
I hope it will stop my two sons and my daughter in law from smoking. There are so many good things you can do with your money. Why use to ruin your health?
This tax is insanity! Lets tax alcohol too. Look at the statistics on alcohol related deaths, illness, and injuries. Not to mention many other alcohol related things like rape, spouse abuse,etc. that cost taxpaayers money. As the writer stated, we can tax all the things that contribute to obesity. Obesity is linked to high blood pressure, stroke and heart attack, joint damage, diabetes, and Alzheimer’s disease. For that matter, I think we could put an extra tax on single mothers having children that go on medicaid, free food programs, etc. I am really tired of paying for these things too. Although it is nice that the above reader wants her son and daughter-in-law to stop smoking, it is unfair to mandate it in such a manner. How would the reader like her vices taxed to the max and then told it is for her on good?
Yes, I agree with Nan too. Alcohol related deaths must be nearly as bad as tobacco related illnesses and deaths. I haven’t seen excessive luxury taxes on alcohol! Maybe it has something to do with the bars owners. There was enough guff from them when Illinois instituted a No-Smoking Ban in January 2008 which prohibits smoking in ANY public place (even bars) and smokers must be within 15 ft. from a public entrance. I was upset about the ban because I am a smoker, 1.5 packs for about 10 years. I can go 2hours and overnight without a smoke. It’s pretty bad.
Anyway, I am now happy about the ban after hearing reports of definate decreases in heart disease and heart attack hospital admissions. I don’t want to hurt the non-smokers!
In Chicago, a pack costs about $7. In the suburbs, where I live, they are about $5.
Jo, What a great, infomrational, comprehensive article! I look forward to reading your other work! Thank you for your support and comments on my articles =) I am glad you like them.
Interesting article.
Value-added tax and worst, rent-seeking are two issues citizens are passionate against in my own country. It’s a highly complicated matter giving rise to a chain of other social ills that wreak havoc on the lives of those who earn an honest living. Keep on ringing louder Jo..
Great thoughts, good thing i dont smoke. thanks for the share.
Please do not let any politicians read your words it is bad enough them telling me that I have to pay high taxes on ciggys to encourage me to pack up. With your talk of alcohol and obesity problems not to mention gambling adiction. You are giving them ideas for new revenue streams. So from an overweight gambler with a penchant for scotch and ciggys shushhh!
My feeling is that this is pure discrimination. I know that second hand smoke is dangerous, but being the owner of two small animals, I do take my smoking habit and go outside on my open patio.
I guess we, the smokers, have to pay for the down fall on this great country.
my dad heard something bout raising thangs to 25$ a pack, carton and bag by april. so would that be false than?
I believe it is unfair to impose high taxes on something that’s considered a vice.
It is a proven fact that most people will not quit smoking because of the prices being increased, either by tobacco companies, retailers or government taxes. However, they will manage to do without other less important things, like food, shelter and clothing.
It is also a proven fact that cigarette smoke is not the only cause of lung cancer. People and even animals that have never smoked or been around people smoking die from lung cancer.
Keep in mind, the government paid tobacco farmers supplements to raise tobacco, until a few years ago. Also, some states forced prisoners to make cigarettes for resale in years gone by.
This tax has nothing to do with smokers health. It’s just another way for governments to collect more taxes, without causing a complete revolt from all US taxpayers. It’s all about the dollar. If you’ve got it, they want it.
Your story is misleading – It states that: “IF if all the states . . . ” Guess what, they are not, only 17 are. You are making a sensational claim based on a faulty assumption.
Dave Ramsey,
Actually, my article is not misleading or based on a faulty assumption at all. 17 states have a cigarette tax bill filed or have already passed new law. If all of the states (17) pass their proposed legislation, then the average price will raise to 9.00. I do not state anywhere that I am figuring other states “maybe” raising taxes. My article is based on 17 states proposed legislation which is expected to pass. “All of the states” refers to all of the states (17) that is referred to in the same paragraph. I assume that is what confused you? I AM NOT TALKING ABOUT EVERY U.S. STATE RAISING TAXES.
However, to come up with the 9.00 figure, I assume that the Federation of Tax Administrators used the current prices of each and every U.S state, and then added the increases by the 17 states. That gives them an average cost.
17 states or all of them, it doesn’t make her statements regarding the issue any less true, don’t deflect from the issue at hand.
This is not fair. Is there a chance that this tax could be reversed? There may be a lot of people who say right on who hate smokers. I don’t think it’s fair. I may smoke but I don’t drink and hate those that over do it and cause wrecks and kill people. I don’t gamble and feel that should tax gambling a $1.00 for every dollar you bet? Let’s see how that goes over… My weight fits my height, but when I see these fat overgrown people and kids. I think every McDonalds, Taco Bell and other fast food places should be taxed 25%… They even talked about taxing Chocolate of which I don’t eat much off but do like one about once a month. I would hate to have to pay $5.00 for a $1.00 Chocolate Bar. But if that’s what it takes to keep people from killing them selves from overeating. I am all for it. There is so many other ways to raise tax dollars and I don’t feel it’s right to do it to just one vice.
Hey, this is for you:
1) CHAN LEE PENG, when they impose an egg-roll tax, OR
2) Ann McNew, when they impose a cosmetic foundation tax, OR
3) Ruby Hawk, when they exorbitantly tax your bird feed, OR
4) Likha, when they decide you and your girlfriends are a bit too trampy and want to tax your feathers, or scarves, or boas OR
5) Dave Ramsey, when the rest of us decide that the inhabitants of your state need to be punished and we impose an Eastern-liberal tax OR
6) when should be banned, but short of that, let the rest of us profit while we can!
it will be too late to help you, because the rest of us will have already have been imprisoned by the “virtuous” leaders you have overtly or submissively allowed to wreak havoc on what otherwise could have been a great society.
I would bet that you are indeed a smoker. American tax laws do need to be represenitive. But I have never heard anyone complaining about how high the taxes are for truckers. I guess you only complain when your own vice is hit.
I think it is important to remember that taxation, while neccesary is a form of control. I think that the argument that smokers should not bear the full cost alone is a valid one, but I think we are missing the bigger point. If we allow the government to make people stop doing something by taxation, what is next? We need SERIOUS health care reform in this country and it is going to have to come through the government unfourtunatly. The drug and insurance company’s obviously cannot continue to dictate who gets coverage and what prices we pay.
At the same time we as American had better watch what big brother has their hand in. Maybe alcohol will be next, then gambling, and then going outside for more than 3 hours a day in the summer…..
There is an alcohol tax already.
Church exemption does not cost you or put a burden on you. Actually churches keep people off the welfare rolls and help their members to be less burden on society as well to remain healthy. We want people to be healthy.
Increasing the tax on this dangerous drug called tobacco is an effort to stamp out its use and all the negative things that come from its use. Either that or make it illegal. Which do you prefer?
I don’t smoke now but did about four years ago for five years. Quiting is very hard to do and hard for people that don’t smoke to understand. I think raising taxes on cig. will further hurt the economy because most people will continue to buy cig. and pay the high price, Therefore leaving them with less money to spend elsewhere. Just as raising taxes on anything would do. I can make decisions on my own without big gov. making them for me, and I think most other people can too.
Please try and Quit…tax or no tax…fair or unfair…
Here is some astonishing facts about quitting smoking
* In 20 minutes your blood pressure will drop back down to normal.
* In 8 hours the carbon monoxide (a toxic gas) levels in your blood stream will drop by half, and oxygen levels will return to normal.
* In 48 hours your chance of having a heart attack will have decreased. All nicotine will have left your body. Your sense of taste and smell will return to a normal level.
* In 72 hours your bronchial tubes will relax, and your energy levels will increase.
* In 2 weeks your circulation will increase, and it will continue to improve for the next 10 weeks.
* In three to nine months coughs, wheezing and breathing problems will dissipate as your lung capacity improves by 10%.
* In 1 year your risk of having a heart attack will have dropped by half.
* In 5 years your risk of having a stroke returns to that of a non-smoker.
* In 10 years your risk of lung cancer will have returned to that of a non-smoker.
* In 15 years your risk of heart attack will have returned to that of a non-smoker.
Some very good insights about both sides of this issue. This is a complicated subject and you have given it insightful and excellent coverage.
“Located at the cross street of Maybe and Might, lies the house of Never. Sheeplets procrastinate what’s wrong and right while tyranny pulls the lever.” – Louis Turner
There is an alcohol tax already.
I do not drink, So I think it should be raised. Look at how much Alcohol costs us every day. In Lives lost due to drunk driving. In lives lost due to alcohol related diseases and deaths. In property damages and Insurance claims. How much money would the police depts save if they didn’t have to deal with drunks. What about all the lives indirectly effected by alcohol.
I say add up all those costs and make drinkers pay for it and then some.
Church exemption does not cost you or put a burden on you.
HAHAHA Ill try to make this one brief otherwise it would take DAYS to respond to this one sentence.
First off what ever the church does not pay we all have to make up for as individuals. I for one dont think that Churches should be taxfree. Sure back when churches where actually about saving souls maybe (and thats a maybe) But look around you now. Look at all the steel and Glass skyscrapers..things sure have changed from the days of sworn poverty and giving up worldly goods.
Actually churches keep people off the welfare rolls and help their members to be less burden on society as well to remain healthy.
Churches keep people off of welfare rolls? Lets see some actual facts to back that statement up. I want #s, and not from the churches from an impartial observer.
We want people to be healthy.
Sure you do. So lets slap on a tax for fast food and other unhealthy foods. Like that Mac and Cheese. Or all those cokes you chug down. And dont forget about the beer and booze. After all you want us to be healthy and taxing unhealthy things is the best way to go.
Speaking of HEALTHY. what about mental health. If I made the claims alot of churches make Id be locked up for being a schizophrenic. Talking to the invisable man in the sky (who by the way HATES GAYS and has alot to say about alot of things..speaking of which didnt he say ALL THINGS IN MODERATION im assuming that includes tobacco) Of course if I had to think of a list of people who actually follow the Bible to the letter The Church would be the last on that list..if they even made it to the list.
Increasing the tax on this dangerous drug called tobacco is an effort to stamp out its use and all the negative things that come from its use.
No increasing tax on tobacco is an effort to MAKE MORE TAX MONEY. Banning tobacco would be an effort to stamp out its use. BUT its also an effort to allow the government to decide what you can and cant do to your own body. Now if you want to have a government that can control things like that , there are plenty you can move to ..say China, North Korea, ect ect.
If the people who really want a repressive controlling govenment would like to move to one, Ill be happy to pitch in for a plane ticket.
You live in a country that is based on the freedom of the individual. Learn to live by the rules.
Either that or make it illegal. Which do you prefer?
While making it illegal at least makes more sense if your real goal is health related. I personally would prefer NIETHER.
The argument goes that because smoking causes all of these health problems we need to raise taxes. OK fine so far and I agree so far. But then what does that money go to. Roads and schools. Sorry but thats BULL. It would be fine if it was usded to cover smoking related health care cost but its going to pay for little Timmy to learn that the earth was created a few thousand years ago and we used to ride Dinosaurs to work like the Flinstones. (did you see that …I snuck in another way the Church is a burden on everyone)
WOW this is getting LONG…. I havent even touched on. Porn, Driving, Skiing, Rap and R&B music, Country Music, Ice Cream, Walking down stairs, guns, Knives, those little plastic Umbrellas that come in drinks, Commercial drugs, Breakfast cereal, Pretty much anything you eat and or drink. The production of plastics. The Happy Fun Ball. Cellphone radiation. Television radiation. Radiation from you Microwave.
Anything that a politician has ever said or done. Sunlight….
You get the point.
Name something and I bet I can come up with a reason or reasons why its bad and needs to be taxed. Of course our glorious leaders will be more than happy to tax anything as well
There is an alcohol tax already.
I do not drink, So I think it should be raised. Look at how much Alcohol costs us every day. In Lives lost due to drunk driving. In lives lost due to alcohol related diseases and deaths. In property damages and Insurance claims. How much money would the police depts save if they didn\’t have to deal with drunks. What about all the lives indirectly effected by alcohol.
I say add up all those costs and make drinkers pay for it and then some.
Church exemption does not cost you or put a burden on you.
HAHAHA Ill try to make this one brief otherwise it would take DAYS to respond to this one sentence.
First off what ever the church does not pay we all have to make up for as individuals. I for one dont think that Churches should be taxfree. Sure back when churches where actually about saving souls maybe (and thats a maybe) But look around you now. Look at all the steel and Glass skyscrapers..things sure have changed from the days of sworn poverty and giving up worldly goods.
Actually churches keep people off the welfare rolls and help their members to be less burden on society as well to remain healthy.
Churches keep people off of welfare rolls? Lets see some actual facts to back that statement up. I want #s, and not from the churches from an impartial observer.
We want people to be healthy.
Sure you do. So lets slap on a tax for fast food and other unhealthy foods. Like that Mac and Cheese. Or all those cokes you chug down. And dont forget about the beer and booze. After all you want us to be healthy and taxing unhealthy things is the best way to go.
Speaking of HEALTHY. what about mental health. If I made the claims alot of churches make Id be locked up for being a schizophrenic. Talking to the invisable man in the sky (who by the way HATES GAYS and has alot to say about alot of things..speaking of which didnt he say ALL THINGS IN MODERATION im assuming that includes tobacco) Of course if I had to think of a list of people who actually follow the Bible to the letter The Church would be the last on that list..if they even made it to the list.
Increasing the tax on this dangerous drug called tobacco is an effort to stamp out its use and all the negative things that come from its use.
No increasing tax on tobacco is an effort to MAKE MORE TAX MONEY. Banning tobacco would be an effort to stamp out its use. BUT its also an effort to allow the government to decide what you can and cant do to your own body. Now if you want to have a government that can control things like that , there are plenty you can move to ..say China, North Korea, ect ect.
If the people who really want a repressive controlling govenment would like to move to one, Ill be happy to pitch in for a plane ticket.
You live in a country that is based on the freedom of the individual. Learn to live by the rules.
Either that or make it illegal. Which do you prefer?
While making it illegal at least makes more sense if your real goal is health related. I personally would prefer NIETHER.
The argument goes that because smoking causes all of these health problems we need to raise taxes. OK fine so far and I agree so far. But then what does that money go to. Roads and schools. Sorry but thats BULL. It would be fine if it was usded to cover smoking related health care cost but its going to pay for little Timmy to learn that the earth was created a few thousand years ago and we used to ride Dinosaurs to work like the Flinstones. (did you see that …I snuck in another way the Church is a burden on everyone)
WOW this is getting LONG…. I havent even touched on. Porn, Driving, Skiing, Rap and R&B music, Country Music, Ice Cream, Walking down stairs, guns, Knives, those little plastic Umbrellas that come in drinks, Commercial drugs, Breakfast cereal, Pretty much anything you eat and or drink. The production of plastics. The Happy Fun Ball. Cellphone radiation. Television radiation. Radiation from you Microwave.
Anything that a politician has ever said or done. Sunlight….
You get the point.
Name something and I bet I can come up with a reason or reasons why its bad and needs to be taxed. Of course our glorious leaders will be more than happy to tax anything as well
Great points. As a smoker I am being targeted. The government doesn\’t really want us to quit, they just need an excuse to squeeze as much money out of us as they can. I wish that all the smokers in the country would quit for just a week. The State and Federal budgets would plummet and the country would be thrust into upheaval. That would teach them. Personally, I am switching to an electronic cigarette. It has no carcinogens and is basically as healthy as a cup of coffee. But you will see, the government will find some sort of excuse to tax those too.
cigs ARE bad but e-cigs (safer with no chems EXCEPT nicotine) may soon be outlawed in the USA to protect tobacco and drug company profits
http://dealextreme.com/products.dx/category.815~r.30061725
I’m glad its that high and wish it would go higher.
McDonalds and Burger King, should be taxed also along with all the candy and gambling. Imagine all the money that people would save if they didn’t smoke, eat junk food and gamble.
TAX IT ALL… thanks for your line of logic, you are right it’s not fair for smokers to face this alone…
Smoking costs billions of dollars in health care bills. A recent statistic stated that in Pennsylvania alone each household pays an extra $660 per year because of smoking related health costs. Taxing cigarettes helps to offset those costs a little. The biggest issue that I have with smoking is someone who knowingly exposes their children to it by smoking in their home or car. That is child abuse if I ever saw it. If I took the chemicals in cigarettes and put them in a glass and had a child drink them I would be locked up for a long time. Why do smokers get away with that.
In addition to cigarettes, I think anything that is shown to have ill health effects should be more heavily taxed. Potato chips, soda, beer, and so on.