Re: Fed. Gov. Slaps a 53% Tax increase on Cigars & Pipe Tobaccos
- From: Robert <magineeer@xxxxxxxxxxx>
- Date: Wed, 01 Aug 2007 03:23:46 -0700
On Jul 31, 8:27 am, "chris33...@xxxxxxx" <chris33...@xxxxxxx> wrote:
Smoke shops around the country are stupefied. Cigar and Pipe Tobacco
Manufacturers are stunned. This entire affair sounds like a
description from the pages of one of the JK Rawling books, where
characters are hit by a "stunning" or "confunding" charm.
Yes, our children are very important and they are our future. The 1st
question is: Why should ONLY ONE SEGMENT of the economy shoulder the
responsibility of their medical needs. And we must not forget that
SCHIP also insure 600,000 adults, unborn children and pregnant women.
So who are we insuring?
The 2nd question is: Do these politicians, who we must assume live in
cocoons, believe that there is going to be any revenue from these
taxes? No really. Each state has its own taxes for tobacco. And
because of so many smoking bans the revenue from these taxes has
diminished drastically. Do these politicians really think that the
average pipe smoker is going to pay $60 for 7oz of Pipe Tobacco? That
is a 53% increase before state taxes. I don't think so.
How did we arrive at this calculation? FIRST, the manufacturer is
charged the 53% tax, who in turn passes it to the importer. SECOND,
the importer passes it to the distributer, plus his profit margin.
THIRD, the distributer passes the increase to the tobacco shop with
HIS profit margin. By the the time it reaches the consumer it will
have increased three times. So, if 7oz of tobacco costs $20, calculate
$20 X 3= $60!
The 3rd question is: Who else will this affect? What kind of ripple
effects will this have? It will affect all the cigar tobacco
countries; Nicaragua, Dominican Republic, Mexico, Honduras, etc. And
the Pipe Tobacco growing States; Kentucky, Tennessee, Virginia.
Is this the first time an action like this has been taken? No. Years
ago the large boat or luxury boat industry went through the same
thing. From one day to another the boat construction industry was
passing to the consumer alarmingly high taxes. What happened? The
buyers went elsewhere. Europe, Mediterranean, anywhere they could buy
their boats cheaper. What happened? We can say that this segment of
our industry went bankrupt and barely exists.
Why is this happening? Well... elections of course. In two years we
will be electing a new president, senators, congressmen/women,etc.
Consequence? The further erosion of a wobbly economy. Nice...
Conclusion: Wouldn't a tax cut for the low and middle-income tax
payers, who currently can't afford health insurance be better? With
this tax break they would be able to purchase private insurance plans,
therefore helping in developing our economy instead of strangling it
If you wish to pay this tax, do nothing.
If you don't want to pay this tax; take action. Click on the link
below and tell your Senator:YOU DON'T WANT THIS!http://rtda.org/legislation.html
As I and others have said all along we should do something to help
ourselves before all this anti-smoking legislation gets out of hand.
Only to be meant with apathy and red herring repies. More and more
states have followed with anti-smoking legislation and this is another
case in point. Hopefully it will not pass but if it does what will it
do to the price of pipes?
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