With new president comes new cigar tax

[baba]

Originally Posted by BigBuddha76

a good thing would be to start the pressure now on the reps...write letters, call, make them remember that you are a voter as well

I have tried that with our reps. I got an email back saying that it is a hard decision, but too bad.

[mikejh-cl]

the problem is, with all logic of the bill aside, people who are concerned about how the tax will affect them will probably always be in the minority to people who want to see tax money spent on health care for uninsured kids

[baba]

Originally Posted by mikejh

the problem is, with all logic of the bill aside, people who are concerned about how the tax will affect them will probably always be in the minority to people who want to see tax money spent on health care for uninsured kids

You are probably right. Unfortunately a high tax would make people loose jobs. Sales would drop dramatically, stores and manufacturers would close.
A reasonable tax for a reasonable bill would be nice. A bill that would cover all those at or below the poverty level. A tax that would not cause people to loose their jobs.

[mhlatke]

Originally Posted by baba

I have tried that with our reps. I got an email back saying that it is a hard decision, but too bad.

At least he understood you. My representative sent me back a form letter THANKING me for SUPPORTING the bill?!?!

[Starsky]

Higher taxes, no more cigar sales, no more cigar sales, no tax money for "the children". Are they really this slow in the head?

[GotaCohiba-cl]

Originally Posted by Starsky

Higher taxes, no more cigar sales, no more cigar sales, no tax money for "the children". Are they really this slow in the head?

Yes they are!!!!

[nativetexan_1]

Forget poverty level, below poverty level, or above poverty level. I just want to know where in the Constitution Congress believes they get the authortity to spend tax money on health care for anybody!!

[leafandale]

Originally Posted by Camacho Junior

I was looking it up today and there are some that are worded as a 3 dollar cap and some that are worded as a 10 dollar cap. CRA said a 6,000% tax increase. Either way it's before state tax. Jeez!

The 10.00 cap was on the first go 'round. I believe that is long gone. The last go round was a 3.00 cap or 53% tax on the wholesale price. The current federal excise tax on a cigar is about a nickel. So a 6000% increase brings the nickel to about $3.

Originally Posted by deuce

The problem is, this tax raises the price of a $6 cigar to a $9 cigar before state taxes. Michigan has a 32% tax on cigars, plus 6% sales tax. Your looking at $12+ for a $6 stick! That alone will drive a lot of people to stop smoking the "occasional" cigar and put a lot of smaller B&M's out of business.

At the risk of sounding like my high school math teacher... In theory, a $6.00 cigar in Mich. costs the retailer $2.28. The Mich tobacco tax is added to that price giving you a "real" cost to the retailer of $3.00. The retailers margin is then added to that and that gives you the $6.00 cigar. Under the last SCHIP scenario of 53% tax, the base cost of the cigar, after Mich OTP tax of 32% would be $4.60. The retailer margin would be added and the result would be a $9.20 cigar that used to be a $6.00 cigar. Of course, 6% sales tax brings the final price to $9.75. Not a $12 stick, but still a hefty 54% hike over the previous price.

Whatever the final numbers are, we WILL be paying more for cigars by this spring. The only saving grace is that the economy will trump health care. If the economy continues to worsen, Obama may forgo any and all planned tax increases for at least the short term. He is already hinting that he may back off the corporate tax increases and the increases on the top 5% of wage earners. Many of the pundits were discussing this point after his news conference today.

[DBCcigar]

They already said that the $10.00 PER CIGAR tax is not going to pass. They tried that last year....You MIGHT see $1.00 (or $2.00). I think that is going to be the least of our worries of what this new dumb a$$ is going to do!

[GotaCohiba-cl]

Originally Posted by DBCcigar

They already said that the $10.00 PER CIGAR tax is not going to pass. They tried that last year....You MIGHT see $1.00 (or $2.00). I think that is going to be the least of our worries of what this new dumb a$$ is going to do!

I totally agree with that last sentance.

[GotaCohiba-cl]

Originally Posted by leafandale

The 10.00 cap was on the first go 'round. I believe that is long gone. The last go round was a 3.00 cap or 53% tax on the wholesale price. The current federal excise tax on a cigar is about a nickel. So a 6000% increase brings the nickel to about $3.



At the risk of sounding like my high school math teacher... In theory, a $6.00 cigar in Mich. costs the retailer $2.28. The Mich tobacco tax is added to that price giving you a "real" cost to the retailer of $3.00. The retailers margin is then added to that and that gives you the $6.00 cigar. Under the last SCHIP scenario of 53% tax, the base cost of the cigar, after Mich OTP tax of 32% would be $4.60. The retailer margin would be added and the result would be a $9.20 cigar that used to be a $6.00 cigar. Of course, 6% sales tax brings the final price to $9.75. Not a $12 stick, but still a hefty 54% hike over the previous price.

Whatever the final numbers are, we WILL be paying more for cigars by this spring. The only saving grace is that the economy will trump health care. If the economy continues to worsen, Obama may forgo any and all planned tax increases for at least the short term. He is already hinting that he may back off the corporate tax increases and the increases on the top 5% of wage earners. Many of the pundits were discussing this point after his news conference today.

Stock up if you can for the long haul!!!

[Deuce Da Masta]

Originally Posted by leafandale

The 10.00 cap was on the first go 'round. I believe that is long gone. The last go round was a 3.00 cap or 53% tax on the wholesale price. The current federal excise tax on a cigar is about a nickel. So a 6000% increase brings the nickel to about $3.



At the risk of sounding like my high school math teacher... In theory, a $6.00 cigar in Mich. costs the retailer $2.28. The Mich tobacco tax is added to that price giving you a "real" cost to the retailer of $3.00. The retailers margin is then added to that and that gives you the $6.00 cigar. Under the last SCHIP scenario of 53% tax, the base cost of the cigar, after Mich OTP tax of 32% would be $4.60. The retailer margin would be added and the result would be a $9.20 cigar that used to be a $6.00 cigar. Of course, 6% sales tax brings the final price to $9.75. Not a $12 stick, but still a hefty 54% hike over the previous price.

Whatever the final numbers are, we WILL be paying more for cigars by this spring. The only saving grace is that the economy will trump health care. If the economy continues to worsen, Obama may forgo any and all planned tax increases for at least the short term. He is already hinting that he may back off the corporate tax increases and the increases on the top 5% of wage earners. Many of the pundits were discussing this point after his news conference today.

You obviously dont frequent my locals

[The EVP]

The new SCHIP bill is due to be voted on, if I remember correctly, September of 2009. As it stands now, the federal tax would be $3 per cigar. However, there is nothing stopping them from re-writting the bill and increasing it back to $10. A democratically controlled congress and house will pass that bill (they did it the last time around with ease....it was the veto override that they didn't have enough votes for). Obama most certainly will sign the bill into law.

The sad thing is that the liberal left who sponsor the bill have no clue on economics. As Starsky posted earlier, this will cause most people to stop buying cigars, thus cutting the funding to the program. They will then find something else to tax. Liberal economics at it's best:

(Tax now + Spend now) - Think Later = FAILURE

[Tampabaycigarradio-cl]

ALL HAIL EMPEROR OBAMA, he knows what's best for the country and what's best for the children. Alas, say goodbye to this great Republic and Capitalism. "Say 'ello to my leetle friend" .....socialism.....

[tx_tuff]

If it passes I will be putting my kids on the insurance and then that will give me a $550 dollar a month cigar fund that I will save on paying for insurance!