Now is the time at SDA when we juxtapose!
February 4th – “The bill signed by Obama aims to increase the number of children covered by SCHIP to 11 million from the 7.4 million currently enrolled. The expansion is being paid for by raising the federal tax on cigarettes to $1 per pack from the current 39 cent-per-pack tax. Taxes on cigars and other tobacco products will also rise.”
June 23rd – “Tampa will lose part of its cigar heritage in August when Hav-A-Tampa shuts its factory near Seffner and lays off about 495 employees, closing a factory that has been operating since 1902.”
The law of unintended consequences stikes again. Probably wasn’t a unionized shop anyway.
Don’t consider the outcome. It’s the good intention that counts.
If the 495 employees each paid $10,000 in federal taxes that would total $4.95 million. Divide the 4.95 million in tax revenue lost by the increase of $.61/ pack and that is 8.12 millions packs of cigarettes. They will sell that many packs country wide before coffee break on the first day the tax is in place. Who cares about the collateral damage of a few employees losing their jobs, it is the State that picks up the employment insurance and welfare costs. Obama doesn’t care, and doesn’t think things through. Wonder how many of these newl unemployed voted for the One.
mid island mike
Taxing smokers more is a no-brainer. It’s a win-win proposal, as smokers have already been marginalized as individuals.
No, wait, *now* smokers have to move _100_ feet from any public place!
[Subtext: you’re a convenient target, everybody hates you and we’re going to tax you more]
Yuppers…raising taxes on tobacco creates no social problems at all.
Just ask the local health authority of any county that borders a reserve….no problems at all.
BTW…every single last one of my employees who smoke buy their ciggy’s from criminals….and when asked about it, they feel no remorse at all as the high taxes on legit smokes has “forced” them to do it.
It is my traditional Canadian right to trade with the FN’s for tobacco!
As long as that tobacco does not contain mice droppings, wood chips, metal shavings, feces…..and somehow they guarantee that the substandard product does not find it’s way to our children……trade away!
right on the money brian. last time tobacco was too expensive you could buy loose leaf cured tobacco in quebec and shred id it your self. as i remember it was very cheap and legal at the time.
Here in NS, we got ourselves a new NDP government and the first action they took was to raise tobacco taxes by $1.25 per pack, plus tax on tax etc. There are two reserves in the immediate area, and you could almost feel the joy in the air. I don’t smoke, but I rejoice at any act of civil disobedience by the sheeple of this nanny state freakshow of a country.
Not noted in the article, the Florida governor just signed a NEW, new tobacco tax increase at the state level, again, aimed at health care for kids. Naturally, as the governor is from the Tampa area, he lied when campaigning and said he was, “…disinclined to raise the taxes on tobacco…”, especially as it was an important local employer and after there had just been a significant federal tax increase. However, the governor never met a dime of the public’s money he didn’t want to waste on some boondoggle.
when political expediency meets economic reality, the economic reality always wins in the end.
I’ve always held to the belief that high taxes lead to criminality. Somebody will produce a highly taxed product and sell it to the public at a much lower cost than the legitimate product. If the difference between the illicit product’s price and the legitimate product’s price is a few cents(ie. less than 10 cents)the public will stay with the legitimate product. However, if the price of the illicit product is 50% less, the public will switch if they can which in turn gives the producer of the non-legitimate product more power and allows it to get into other illegal activities–because that’s where the money is.
~~favill~~
The natives now sell more than 50% of all cigarettes in Ontario. The lost tax revenue is in the billions yet rather than reduce the tax so people will buy the legal cigarettes they continue to raise taxes driving more consumers to buy from native smoke shacks. With native smuggling and manufacturing soaring organized crime is now fully involved.
Force stores to put cigarettes behind $2,500 closed shelves, raise taxes, force stores to monitor who they sell to while natives obey none of these costs and regulations and are ignored because of political cowardness. Tax revenues drop, natives grow rich. Sounds like a typical government plan!
Also, it should be mentioned that the natives have set up smoke shops off reserve and the OPP does nothing to shut them down.
DEPRESSION, HERE WE COME!
“Soaring organized crime” like the guys who photo copied the FBI’s operations manual when they stole their truck.
The rumour around the six nations Indian reserve is that there are warehouses with entire floors with nothing but shrink wrapped skids of money.
Native sales in Ontario are in the billions.
I have no sympathy for any who loses their job, after voting for Obama. I wonder how many jobs he has lost by his decisions.
I think a lot of his voters might have thought as long as he was going after the rich it was ok. They never realized that when the rich were hit, their jobs were at risk. 2010 will hopefully see a majority of republicans in congress and the senate.
I still cannot understand the logic behind raising taxes on something, the consumption of is being actively lobbied against, to pay for a healthcare initiative that will GROW over time.
A shrinking revenue base funding a growing entitlement seems to be a no brainer as to the illogical nature of the plan. This is why deficits in recessions are normal, tax base shrinks so deficits grow. So do not fall for Government rhetoric that Stimulus is defended by this notion of its OK to be in deficit in a recession.
This model is used on nearly everything in Government these days, including the revenue from cap and trade funding PTCs. The Carbon Tax in BC is another example, they gave tax rebates and reductions plus agreed to low income assistance and paid it all out before they knew what the revenue would be, consequently we ended up with a structural deficit.
Have we lost our minds completely.
Mexico is on the verge of collapse because of the war on drugs…More and more congressmen are talking about legalizing pot and even other harder drugs.
Soon pot might be actually cheaper than tobacco.
Barry is only making sure that his native voter base rewards him come 2012 as a new native tobacco industry will surely take place…Maybe Barry will ask Harper if he can hire some of our native experts to go and train theirs. Phil Fontaine for new US tobacco Czar anyone?
Barry is trying (He said he was “95% cured”: Hey Barry, we “cure” tobacco, we “shake off” addictions) to quit smoking his Kools 100’s, so if da master has to stop so does the rest of the peasants.
Like I said, prohibition only rewards criminals…Chicago knows a thing or two about prohibition.
Barry, Al Capone would be proud.
Ok sure, they lost the jobs at the cigar factory. But just think of all the new jobs that will be created all around the country at tax-free smoke shacks on the reservations! They’ll be popping up like mushrooms.
Obama. Killing America with a thousand cuts or taking over your life. Once they have government health care they will know what slavery is. Particularly when it comes to rationing, then have their medical records open to anyone.
Long lines with Dr’s as government workers.
This guy is a disaster.
JMO