$33B here, $820B there, and pretty soon it's a lot of money

[Calabrio]

U.S. Senate passes Schip expansion via cigarette tax increase;
Sens. John McCain, Jon Kyl dissent
Phoenix Business Journal - by Mike Sunnucks

The U.S. Senate approved a measure late Thursday to raise tobacco taxes and expand the State Children’s Health Insurance Program (Schip) to cover more uninsured children.

U.S. Sens. John McCain and Jon Kyl of Arizona joined 32 other Republicans in voting against the bill. They want the program to focus on uninsured children of the working poor, while the Democratic plan includes more lower- and middle-class children without health coverage.

The $33 billion bill will raise federal cigarette taxes from 39 cents to $1 per pack. It also raises federal levies on cigars, rolling papers and other tobacco-related products.

The plan already had been approved by the U.S. House and is backed by the Barack Obama administration.

And when cigarette and tobacco sales fall due to the aggressive taxation, and there is insufficient funding for the bill, who are they going to tax next?

Are they going to end the program because of a lack of funding, or just raise a different tax?

 

[luxuryrules]

And when cigarette and tobacco sales fall due to the aggressive taxation, and there is insufficient funding for the bill, who are they going to tax next?

Who says they are going to fall? I bet the number of smokers who quit as a result of a 61 cent tax increase is negligible.

Are they going to end the program because of a lack of funding, or just raise a different tax?

Probably raise a different tax. Hello, alcohol!

 

[topher5150]

same problem in michigan. they use the lotto earnings to fund the schools, now that the economy is hurting not as many people are buying lotto tickets

 

[RRocket]

In Canada...where our tabacco taxes are insane by comparison......any tax increase did little to stop smokers from buying.....I would imagine it will be similar in the US.

Heck...some people who have cancer and are missing a lung refuse to quit, so what is an extra few cents going to do?

 

[Calabrio]

Who says they are going to fall? I bet the number of smokers who quit as a result of a 61 cent tax increase is negligible.

Raising the tax 61 cents a pack would cause some to quit.
Especially when it's another $.61 ontop of all the other taxes currently on cigarettes.

A pack of cigarettes in New York City costs over $10.00

Probably raise a different tax. Hello, alcohol!

And this doesn't bother you?

 

[Calabrio]

In Canada...where our tabacco taxes are insane by comparison......any tax increase did little to stop smokers from buying.....I would imagine it will be similar in the US.

Heck...some people who have cancer and are missing a lung refuse to quit, so what is an extra few cents going to do?

I fail to understand why some people fail to recognize that economics is dynamic. That people make decisions based upon their self interest. That things like tax policy shape the decisions all of us make.

Increasing taxes on cigarettes does have a mild deterring effect on tobacco sales. Just like the Lafer Curve, there is a price point where you will see tobacco sales dramatically drop off.

And, this should be of note to liberals, these cigarette taxes are usually paid by LOW INCOME families most.

Regardless, smoking trends have fallen sharply. In 1954, 45% of adults said they smoked. In the 70s, this number was about 40%. Now- it's only 21%.

http://www.gallup.com/poll/109048/US-Smoking-Rate-Still-Coming-Down.aspx

This is another huge spending, socialist bill and it's a lie to tell the public that cigarette sales are going to support it.

 

[fossten]

Who says they are going to fall? I bet the number of smokers who quit as a result of a 61 cent tax increase is negligible.



Probably raise a different tax. Hello, alcohol!

Well you make sure you do your patriotic duty and smoke a pack a day so the li'l chilluns get their healthcare.

 

[Calabrio]

Well you make sure you do your patriotic duty and smoke a pack a day so the li'l chilluns get their healthcare.

Fortunately, they're taxing cigars in New York now too....
I've only been back here six months and I"m already planning my escape back to red-state territory.