Massive Tax Hike On Tobacco Goes Into Effect Tomorrow

Ostensibly to pay for the expansion in the Child Health Insurance Program, but we all know that’s not actually going to work.

The federal cigarette tax goes from 39 cents to $1.0066 per 20-cigarette pack tomorrow. The increase, as we noted in February, was coupled with an expansion of the federal children’s health care program.
…a politically popular and expensive program should never be funded by a small, low-income, politically unpopular minority like cigarette smokers. Just because the government needs revenue to fund some general spending program that has broad benefits doesn’t mean that an arbitrarily selected group of people should pay the tax. Popular, expensive, broadly available public programs should be paid for with broad-based taxes on income or consumption.

The problem with paying for expensive, but “politically popular,” social programs with broad-based taxes is that once the majority of taxpayers realize how much the program in question is going to cost it usually loses a lot of its political popularity. That’s why, in order for the government to get its foot in the door with these sorts of program, they start out with a narrowly-defined tax on an unpopular group of taxpayers (smokers, “the rich,” etc.).
Of course, that narrow tax base is unlikely to produce enough revenues to support a massive entitlement expansion, but that’s not the point. Once the program is in place it isn’t going anywhere, and its easy enough for politicians to raise other taxes to cover shortfalls.
It’s just another way in which the government grows itself in a pervasive, and fundamentally dishonest, manner.

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  • http://Array docdave

    I don’t think Indian reservation tobacco is taxed. If true you may see many smokers going there to get their smokes.

  • Tony B

    Is this one of those taxes that Obama wasn’t going to raise on anyone who makes less than $250k?

  • robert108

    The concept of “excise taxation” has been debunked a long time ago. If you want to protect the freedom of the vast majority who choose to not smoke, this isn’t the way to go about it. Paying these taxes gives smokers a sense of entitlement. They kill themselves, anyway. As long as we don’t have govt healthcare, and they have to pay the cost for their habit, they get the consequences of their stupidity. Just let nature take its course, I say.

  • Mark

    Kinda like forcing us to buy puddle jumpers that get better gas mileage, and then wondering why revenue from the gas tax is down!

    They just don’t get it! But they will find a way. Wait until we have sky high taxes on alcohol and watch people head for the border to buy cheaper whiskey.

  • robert108

    I hate taxes, unless they are taxing smokers, blah, blah, blah…

    You lie; I said nothing of the kind. In fact, I don’t think the strategy of trying to tax smoking out of existence is a good idea, which you would know if you actually read what I wrote. I guess that nicotine addiction has dulled your ability to think clearly.
    I don’t think smoking addicts have any right to interfere with the freedom of the vast majority who choose to not smoke, but if they aren’t smart enough to know how bad smoking is for them, let them smoke themselves to death. They should be prevented from taking any non-smokers with them, of course.

    Is it lonely up there, on your high horse?

    Still bitterly clinging to your addiction? In fact, 80% of Americans choose to not smoke, so doing the intelligent thing isn’t lonely at all. Doing what makes sense is not a “high horse”, unless you are already in the gutter.

  • bill-tb

    It’s formulaic, the NAZIs, Communists, Fascists, Socialists, all flavors of today’s modern liberalism, have all used the same for ages. It’s just that ignorant people never seem to figure it out. Eventually, when the gulags fill to overflowing, and the overflow has to be disposed of, then they slowly begin to get it.

    There have been between 125 and 200 million in overflow reductions in the 20th century worldwide.

  • Zakk

    Paying these taxes gives smokers a sense of entitlement.

    – Whatever. I guess that is in the same vein as nonsmokers feeling like they are better than smokers…err, umm…YOU! I’m am such a better person because I don’t smoke.

    they get the consequences of their stupidity

    I hate taxes, unless they are taxing smokers, blah, blah, blah…

    Is it lonely up there, on your high horse?

    The issue here is, why would the government tax smokers and say it’s for health care, then dump more money into getting people to quit smoking? Like I said before, when everyone has quit smoking, where will that money come from?

    Who will be the next minority that is taxed out of existence? Will it be the cow farmers? People are dying from heart disease, there is science out there that says heart disease is directly related to too much red meat.

    Then lets go after the sugar companies because people are getting fat. and so on and so on….

    Look Robert, we all know you hate smokers, (I still have never figured out what your deal is, why you have such an incredible prejudice against smokers-but whatever) but at what point do you stand up and say enough is enough? This really is not about smoking anymore, this is about the government taxing the hell out of their citizens. If it is really that bad, make a law – ban smoking all together. Stop being a bunch of pussies and fucking do it! Hell, maybe that will give me a reason to finally quit.

    Entitlement, [insert eye roll here] whatever.

  • sayanything-2819

    No one to step up and defend the evil smokers in this world. Every generation sees a falling number of smokers. Eventually, the numbers just cannot add up. They will then have to go after another “vice”. This is typical, typical liberal idiocy by both the elected officials and the drones who keep sending them to office.

  • http://sayanythingblog.com/ likwidshoe

    “No one under $250,000 will see a tax-increase.”

    WHAT A GOD DAMNED LIAR.

    Obama, Biden, and every one of his gullible supporters are nothing but liars.

  • Zakk

    Typical

    So when everyone quits smoking, because the cost is too high. How will they make up the money?

    You guessed it, they will raise taxes on something else, something that affects everyone – not just the smokers.

  • Zakk

    Still bitterly clinging to your addiction? In fact, 80% of Americans choose to not smoke, so doing the intelligent thing isn’t lonely at all. Doing what makes sense is not a “high horse”, unless you are already in the gutter.

    Like I said, on your high horse.

  • RustyS

    I don’t smoke, so I don’t care if they tax smoking.
    I don’t, well you know, so I don’t care if they tax porn.
    I don’t eat at McDonalds, so I don’t care if they tax trans fats.
    Please don’t take my California wine.

  • robert108

    Like I said, on your high horse.

    From the point of view of a tobacco addict twitching in the gutter.

  • robert108

    What’s the point of perfect health for 120 years if that life is as exciting as a bowl of Farina?

    Do you regard smoking as “exciting”?

  • http://suitepotato.blogspot.com/ sayanything-4808

    Oh you just wait. They’ll tax porn to in their claim offset law enforcement costs for sex-related crimes and everyone will cheer. They’ll tax alcohol and say it is to fight drunk driving and underage drinking. They’ll go after those things that everyone loves and does but doesn’t want to stand up for, and say it is for the good of all and make it sound unarguably positive.

    Meanwhile, we end up with a society as boring and dull as the Borg collective. What’s the point of perfect health for 120 years if that life is as exciting as a bowl of Farina? We should have BBQs of tobacco smoked steaks instead of hickory on Earth Day, and offer freebies to vegetarians. We should get out chainsaws and do wood cutting demonstrations on Arbor Day. I’d gladly produce CFCs if I had the materials and equipment just to hear their heart attacks, and burn old tires on a stack of virgin lumber doused in used motor oil to get the global warming nuts aroused.

    Leftists are all the same. Insecure paranoid distrustful people, who all worry about what the universe is doing when they’re not looking at it intently. They focus on having control to the point they no longer understand that control is to have primacy in action, that is to be the one to do something. They just want everything to be under their control, unmoving without their direction, everything reliant upon their will and none other.

    Too bad that makes it all individual and mutually exclusive showing that all collectivism under them must ultimately devolve to round robing schism until collapse.

  • http://suitepotato.blogspot.com/ sayanything-4808

    The increase on pipe tobacco only amounts to a few cents per ounce and I buy $10-$30 tins as it is so it won’t be really bad for me at all. And you can buy bulk tobacco for much much less than finished cigs and roll your own as well. I highly recommend stocking up well in advance so you have many years worth.

    Yeah they’re morons but you’re not going to get this knocked back during this administration and not during the next under a Republican unless they have wide popularity giving them enough of a bully pulpit that no one is going to care. Stock up on tobacco for the future now.

  • http://sayanythingblog.com robport

    So when everyone quits smoking, because the cost is too high. How will they make up the money?

    We’re faced with the rather stupid spectacle of government simultaneously pouring billions into government stop smoking efforts, while also counting on billions in tax revenue from taxing the hell out of smokers.

    It’s logic only a bureaucrat could love.

    They will then have to go after another “vice”

    “Fat” will soon be the new smoking.

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