clicky April 1, federal cigarette taxes will go from $0.39 to $1.01 to fund healthcare for children. my take: this tax will fall almost entirely on lower middle class. good one obama.

Quote: With the new federal tax hike, smoking is expected to diminish, as some smokers decide to either quit or cut down rather than pay more.

This will also hit middle class. And from personal experience, I noticed that the lack of smoking resulted in more money in my pocket. Then again, I'm in Canada and smokes cost an arm and a leg here. What I'm intrigued about is this quote:

Quote: "It sounds great, " Eastman said. "But it's one of the worst ways to raise money. It does not, will not and cannot work. History has shown that smoking rates decline and it generates less revenue."

Smoking rates decline which put less people at risk. This means less trips to the doctor/hospital for smoking related illnesses which in turn, saves money (especially when the US doesn't have universal health care like we do in Canada). Even though this tax does not gain revenue itself due to lower smoking rates, it saves the public money by stopping the usage of a toxic chemical. This has been implemented here in Canada and it works like a charm. I have seen so many low income to middle class citizens stop smoking because they can't afford it. It has profound effects.

Quote: Original post by Chris Reynolds
April 1, federal cigarette taxes will go from $0.39 to $1.01 to fund healthcare for children.

And ? Where's the problem with that ?

Quote: Original post by Yann L

Quote: Original post by Chris Reynolds
April 1, federal cigarette taxes will go from $0.39 to $1.01 to fund healthcare for children.

And ? Where's the problem with that ?

Sin tax? I don't smoke, but if I were addicted to a drug, I doubt 60 cents a pack would stop me. If health concerns are a problem, why not legalize other drugs (like marijuana) that don't cause nearly as many health problems.

It's implemented here in Sweden as well, and works great. It's a really clever tax that can't lose. The idea is to make people smoke less, but even if they don't, it brings in a lot of cash to healthcare.

Tobacco is also a good item to tax because it's strictly a luxury item. You don't need to smoke, so if you can't afford it, stop. You will suffer from withdrawal, but that's a hole you dug for yourself and it won't kill you.

Quote: Sin tax? I don't smoke, but if I were addicted to a drug, I doubt 60 cents a pack would stop me.

60 cents sounds like nothing, but compounded over several dozen packs, it's enough to buy a decent lunch. Compound that over a year, and it's in the hundreds of dollars. You're right, it won't stop people from smoking but it may deter them from buying as much. For the really low-income people, it actually may deter them from smoking altogether. In the case of my uncle (whom is really down on his luck) he had to quit smoking when Canada introduced the higher taxes. Not because of pure willpower, rather from his own wife begging him to stop spending money on useless endeavors.

Quote: If health concerns are a problem, why not legalize other drugs (like marijuana) that don't cause nearly as many health problems.

I think this is what it's meant to do. I believe it's a direct attack on the smoking industry in disguise and a segway into Obama's health care policy. Marijuana does cause health problems, even though hippies don't want to admit.

Quote: Tobacco is also a good item to tax because it's strictly a luxury item. You don't need to smoke, so if you can't afford it, stop. You will suffer from withdrawal, but that's a hole you dug for yourself and it won't kill you.

Alcohol is another such drug that is taxed (quite heavily in Canada). And if some politicians have their way, Marijuana will also be legalized and taxed. Food, since it is required for life, is not taxed because it is not a luxury.

Quote: Original post by curtmax_0
Sin tax? I don't smoke, but if I were addicted to a drug, I doubt 60 cents a pack would stop me. If health concerns are a problem, why not legalize other drugs (like marijuana) that don't cause nearly as many health problems.

Or we could do both. However, since legalizing marijuana is probably out of the question for the time being we can focus on one thing. Besides, how does legalizing marijuana make someone less addicted to tobacco?

I'm less concerned about making things harder for addicts (hi mom!) than I am about stopping people from taking up smoking in the first place which I believe this will almost certainly accomplish. I tried finding statistics on this, but a few minutes of google-fu didn't turn up much except a 1981 study by the tobacco industry showing that a 10% increase in cigarette taxes corresponded to a 4% decrease in adult sales and a 12% decrease in adolescent sales (assuming I understood the page correctly).

So no it probably won't stop an addict from smoking but it will hopefully stop people from becoming addicts, cause some addicts to smoke less, cause other addicts to quit, raise some taxes in the mean time, and hopefully lower health-care costs associated with long-term smoking over the next several decades.

Besides, the middle class is supposedly getting their taxes lowered while the wealthy are getting theirs raised so hopefully this balances things out.

Quote: Original post by nobodynews

Quote: Original post by curtmax_0
Sin tax? I don't smoke, but if I were addicted to a drug, I doubt 60 cents a pack would stop me. If health concerns are a problem, why not legalize other drugs (like marijuana) that don't cause nearly as many health problems.

Or we could do both. However, since legalizing marijuana is probably out of the question for the time being we can focus on one thing. Besides, how does legalizing marijuana make someone less addicted to tobacco?

There is legislation batting around in California to legalize marijuana specifically so it can be taxed at something like $50 an ounce. link. So yeah, Khal-ee-for-nee-ahh (to quote the Governator) wants to get in on the dealing game.

Quote: Original post by Yann L

Quote: Original post by Chris Reynolds
April 1, federal cigarette taxes will go from $0.39 to $1.01 to fund healthcare for children.

And ? Where's the problem with that ?

Use your brain.

You tell me where the moral obligation is between the guy who takes cigarette breaks between shifts at a restaurant, and the healthcare for someone else's child.

Raise taxes on the lower middle class in an already struggling economy?

If said people do quit smoking, it's gonna hit the southern tobacco states hard (millions of jobs). Not to mention how this will affect small independent retailers and wholesalers.

Obama promised not to raise taxes on those earning less than 250k/year

that's the problem.

Quote: Original post by Chris Reynolds
Use your brain.

I do. That's why I don't smoke.

Quote:
Obama promised not to raise taxes on those earning less than 250k/year

that's the problem.

Stop smoking. Problem solved.