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Our opinion: Cigarette tax cuts two ways

Monday, March 30, 2009

A few things are well understood about the price of cigarettes:

* The federal tax on a pack rises Wednesday from 39 cents to $1.01. That dramatic 62-cent increase will cause some adults to quit smoking, perhaps a million nationwide. Many affected live in Missouri, where one in four adults is a smoker.

* The increase will deter an even greater number of young people from ever taking up the habit. One estimate is 2 million nationwide. Research shows that every 10 percent increase in the price of cigarettes reduces youth smoking by about 7 percent.

* The new tobacco tax money — $32.8 billion over four and a half years — will help states pay for adding an estimated 4.1 million children to the health insurance rolls. In Missouri, this includes uninsured children in families with incomes up to 300 percent of the federal poverty level.

Government’s reach into smokers’ lives has other consequences, intended or not. Economists point out that the cigarette tax will strike more harshly at low-income people, who are more likely to smoke, while expanding health insurance for middle class children. Proponents hint of social engineering:

“These are precisely the people targeted by tobacco companies in their marketing campaigns and who we would want to quit,” says Peter Fisher of the Campaign for Tobacco-Free Kids, based in Washington, D.C.

There could be wide-ranging benefits to society from hiking the tax — one projection says about 900,000 fewer people will die in coming years of smoking-related illnesses, and the nation’s tab for health care costs will fall by $44.5 billion.

If a tax increase will save lives in Northwest Missouri, where illnesses from smoking exceed the norm, then we see the wisdom in that. But we join with those concerned that a levy weighing heavily on low-income people is designed to fund insurance for others who are better off financially. Government must be held accountable for finding solutions to society’s problems without shifting hardships from one group of citizens to another.

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David March 30, 2009 at 12:59 a.m. (Suggest removal)

During his presidential campaign didn't Obama promise not to raise anyone's taxes that made less than $250,000 annually? If I'm right about that the new tax couldn't take effect on a better day, April Fool. You wanted change, now that's about all you'll have.

God Bless America, God Save The Republic.

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WhoisJohnGalt March 30, 2009 at 6:25 a.m. (Suggest removal)

Sheesh, you totally forgot bootlegging/smuggling. Oh well, it will give the ATF folks something to do. Much of that tax will probably go to hiring more folks to collect the tax. On the other hand, a government job is a good gig. So we can just assume it is part of the stimulus I guess.

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jj48 March 30, 2009 at 7:27 a.m. (Suggest removal)

Has anyone looked at the other side of the coin?? While the tax is intended to fund health care, no one has mentioned what will happen if all of us smokers do quit and no tax is coming in to support health care.

If smokers would ban together and quit, the government would again find something else to collect on......

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StJoeMoe March 30, 2009 at 8:09 a.m. (Suggest removal)

Does anyone really think that much if any of the money will make it where they say it will?

How many of us are that naive?

Seriously, adding 4.1 Million kids to the health care rolls - what kids? Illegal ones?

4,100,000 of them need this and are suffering without?

And how much will be sucked up in administrative costs and how much actually trickles how to pay a FAIR price for healthcare?

OK, I'm a little on edge this AM, sinus headache and all, but I am sick and tired of what seems to be continual lies and deceit our politians dump on us in an every increasing amount.

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StJoeMoe March 30, 2009 at 8:14 a.m. (Suggest removal)

Oh, I'm a ex-smoker, they kill you, that is no joke. They are bad for you and others, tax them, fine by me.

.....but maybe toss that tax towards securing Social Security and I'd calm down a little.....

Obama seems to be making things a lot lot worse than he is making them better -

But you know, a lot of people told us so.....

The projected new tax on our utility bills is going to be a killer if/when he pushes it through.

No new taxes on those with incomes under $250,000.00?

Maybe he should of said "Well, no more of that one little tax for all those people making under $250K, but there will be a lot of other ones to take it's place, I'm so sorry, you must of not heard or mis-understood me... Just don't drink or smoke or drive or use any utilities and you'll be fine....."

errrrrrr

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nerdovision March 30, 2009 at 9:03 a.m. (Suggest removal)

As smokers we are left with only 3 choices that I can think of.

-Pay the tax and move on

-Quit smoking

-or get these www.invisismoke.com

I am sure that the Government wants us to choose the first option as they are more worried about our money than our health!

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Steve_O March 30, 2009 at 9:11 a.m. (Suggest removal)

The main problem is, less than 10% of these monies will EVER get used for the intended purpose. No new taxes for those who make less than $250k ? April Fools ! I would bet that upwards of 90% of the smokers make less than $100k per year. Way to go Barry, Good Luck on that second term! This decission has opened up the foreign market for people to buy their cigarettes OUT of Country, and probably a much worse quality, or possibly people may Grow their own Tobbacco. OH Well !

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stjoereplant March 30, 2009 at 9:57 a.m. (Suggest removal)

Health coverage for all children at 300% above the threshold level? What happened to 100%? It won't be long before it will be all children. Obama is leading us foward towards socialism. Be carefull who you vote for-words and actions are two different things!!

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rhmski March 30, 2009 at 10:32 a.m. (Suggest removal)

What's next? How about a donut tax? This would bring in many billions of dollars since this is the most obese (really really fat) country in the world. Actually this would kill two birds with one stone since most of the fat donut eaters also smoke they would pay for a lot of government graft.

Then we could tax coffee and really make some $$$$. How about ice cream? pickles? twinkies? etc

Where will it end? With a socialist government, decreased constitutional rights for the majority while all the minority groups run the country.

Stand up people or we will lose all of our rights

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Cje March 30, 2009 at 6 p.m. (Suggest removal)

This from The Pitch/Kansas City

http://blogs.pitch.com/fatcity/2009/03/buy_your_cigarettes_now_cigare.php

"If you smoke, this post won't be news because you've noticed the price of cigarettes jump in the past two weeks. Tobacco companies are getting ready for the increased federal tobacco tax by raising their own prices. (Can someone explain how tobacco companies raising the price of a pack 80 cents will help consumers "adjust," as the companies have put it? It just seems a way to eek more profit.)"

Yeah, so the tobacco companies are jumpin' on the wagon with the Feds, they are going to raise the per pack price by 80 cents.

Can you say black market cigarettes? I'll be looking for a source asap.

Folks, we are losing our liberties. All this blah, blah, blah, about the SCHIP program is all smoke and mirrors.

Forget rolling your own too:

"The tax on RYO tobacco goes from $1.10 per pound to $24.78 per pound. That's more than 2,100 percent! Tuesday, a sack of RYO tobacco will cost $15; Wednesday it will be $40."

"This land is your land...this land is my land...from California to the New York islands."

Yeah, right.

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