SCHIP

Boston's Schizo Tobacco Policies

Filed under: Cigars

The City of Boston just can't seem to make up its mind. Back in December, officials were mulling an absolute smoking ban that likely would have led to the closure of several cigar-related businesses (such as Cigar Masters on Boylston St.). Now, the city sees tobacco as a way to bring some new cash into ol' Beantown's coffers – up to $13 million annually, actually. The tax increase would cover loose tobacco, small cigars and smokeless tobacco.

Having tapped the cigarette well dry with a recent tax increase from $1 a pack to $2.51 last July, the lawmakers have had to hunt elsewhere. Officials, with bizarre logic, believe that the cigarette tax has led price-sensitive teenagers to consume other forms of tobacco. Yet, there has been no report of an outbreak hoodlums smoking White Owls at Copley.

While this measure does not affect the luxury cigar market directly, the underlying thinking may signal future legislative ambition. Cigarettes, long the preferred tobacco product to tax, will eventually lose their value as a source of tax revenue, particularly if they are taxed out of existence. While the stated ambition of the proposed Massachusetts measure is to price tobacco out of the reach of minors, it also suggests that alternative sources of tobacco tax may be necessary.

We've seen this thinking in action with the SCHIP. The states may follow.

Worried about the future of your right to enjoy cigars? Join the Cigar Rights of America.

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Tags: boston, cigar, cigars, massachusetts, schip, smoking ban, smoking bans, SmokingBan, SmokingBans, tax, tax increase, tax increases, taxes, TaxIncrease, TaxIncreases

Hey, Bargain-Hunters: Cigar Prices already Hiked

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

The SCHIP takes effect next week, and cigar smokers everywhere are dreading Wednesday. We've seen it coming, and I'm sure a few committed, deep-pocketed smokers have been stocking up to lock in discounts now. For the rest of us, though, there's no choice but to bite the bullet. And, in some places, that bullet is flying faster than in others.

Employees at the 16 Tocacco Depot stores, for example, have been rushing around to put new prices on various tobacco products, even though we still have nearly a week left. Fred Hoyland, who runs the show at that chain, says that some of the manufactures have raised their prices early – weeks in advance, even – in a play to beat the bargain hunters to the tax punch. Hoyland calls this "keep[ing] the market and inventory stable."

So, all your planning was probably for nothing. The house always wins ...

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Tags: cigar, cigarette, cigarette smoking, cigarettes, CigaretteSmoking, cigars, schip, smokers, tax, taxes, tobacco, tobacco industry, tobacco use, TobaccoIndustry, TobaccoUse

Miami Cigar Manufacturers Brace for SCHIP

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

President Obama wants to create jobs, yet he isn't too worried about some that already exist. Miami's cigar manufacturers are watching April 1, 2009 with grave concern. The new State Children's Health Insurance Plan (SCHIP) takes effect on that date, resulting in a 900 percent tax increase on every cigar made in the United States – or imported here.

What's at stake?

For Miami, it's the many people responsible for rolling 75 percent of the 272 million cigars rolled in this country. Manufacturers and retailers alike are bracing themselves. A tax that takes the surcharge on hecho a mano sticks from 4 cents to 40.26 cents is cause for alarm.

So, as my sergeant used to say, "Smoke if you got 'em." At this rate, you may not have 'em much longer ... or at least not as many.

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Tags: barack, barack obama, barack-obama, BarackObama, cigar, cigars, cigarshop, florida, miami, obama, president obama, PresidentObama, schip, smoke, smoker, smokers, smoking, tax, taxes, tobacco, tobacco industry, TobaccoIndustry