Tobacco taxes... what do they pay for?

[CaptainPike]

I haven't kept up on exactly what the excuses are for raising taxes on tobacco, so maybe some of the fine members of this board can help me out.

Specifically, I want to know if tobacco taxes are being used to pay for entitlement programs.

[Pauper66]

Federal cigarette tax went from $.62/pack 10 $1.01. The 39 cent increase is supposed to fund SCHIP. Don't know what they do with the other 62 cents.

That's just federal. States have their own tobacco taxes and make their own appropriations.

I used to be a tobacco wholesaler. I just got a letter a few months ago about the new excise tax, and a "floor stock" tax. This is our government at work:

If you have inventory that you bought and paid taxes on before the increase on June 1, you have to inventory your floor stock, and pay the difference in old and new tax rates!!! Retroactive taxation. U-S-A!! U-S-A!!!

Little cigars (cigarette sized) went from a 4 cents/pack tax to$1.01/pack, and bulk tobacco had the biggest increase. I'd have to look it up.

As to entitlements-Congress approved the increase a couple years ago. Bush vetoed. Obama signed off on the new version. So entitlements...whatever are you talking about?:whistle::think:

[Darkblade]

Government will need to start hooking kids right away if they want their revenue stream to continue :))

[altair1013]

They are not designed to pay for anything. It is simply another way for the feds to micro manage people through the tax code. It is every bit as abusive as cap & trade. We opened the door for cap & trade when we let them get away with this.

[mysticbeauty_nbeast]

Well...here in California...it's supposed to pay for medical care for the uninsured children of our state and education programs to keep kids from becoming smokers. Voters have passed this bill and one's like it three times....and guess what...those tax funds are dry. Not one dime went to either cause...it got swallowed up in the 'general fund'. :rolleyes: Gee..big shocker there huh?

Supposedly..so many quit smoking in California..that a current bill has been reassessed and will show up one more time to coincide with the nationalization of health care. One huge problem...you have to have smokers in order for the funds to be viable long term. Doesn't quiet wash does it? One would think the government would be pushing people to smoke...just for the revenue right? ;)

Whole thing is a farce..a huge money grab and a dousing of a viable farming industry by our government. Whole thing is sad...just sad. Bad attempt to legislate our choices based on the nations health. Perhaps Obama and his groupies better apply the same taxes on candy bars, ice cream, fried foods/comfort foods...hell food period...maybe the cash cow type 'fund would be more sustainable? Better tag any drinks with sugar in them while your at it...tag beer and alcohol too...why not? It's for the betterment of our health which saves our government money...right? ;)

~Mysty

[Surfergirl]

While campaigning Obama said no new taxes for people making less than 250,000 and this tax actually effected more people in lower income levels.

Just another one of Obama's many lies. It's also a way for him to take away freedom.
I heard there will be a tax soon on sugary drinks and candy and sugar.

[Pauper66]

While campaigning Obama said no new taxes for people making less than 250,000 and this tax actually effected more people in lower income levels.



So quit smoking and enjoy your new tax cut. Just think of all the extra money you'll have.

[Pauper66]

You may even live long enough to enjoy it.

[CaptainPike]

Government will need to start hooking kids right away if they want their revenue stream to continue :))

This is kind of the reason I asked what tobacco taxes pay for.

I always hear people ask the question "Where will the money come from once they tax it so much that everyone quits smoking??"

The answer, as I see it:
It will still come from taxes. They can simply keep raising taxes and using it as an excuse to bloat up entitlement programs, and once they finally do tax it out of existence, it won't matter. The entitlements will never go away. The whipping boys such as tobacco, sugar, fast food, carbon dioxide... even traveling in your car... this is what the government will use as an excuse for tax increases. The entitlements will never, ever go away, even after they have managed to tax these things out of existence.

You'll either happily make up the difference in lost tax revenue with your paycheck, or else you'll be telling the poor poor children, and the frail elderly lady down that street that eats cat food because her social security check just isn't enough, that they can go to hell. And nobody could be that mean, could they?

The only "sin" involved in these sin taxes is the sin commited by our government when they lie right to our faces. Who will oppose taxing tobacco even more?? Tobacco deserves it!