Obama proposes $.94/pack cigarette tax hike

[Bill Godshall]

Breaking News

Obama proposes $.94/pack cigarette tax hike
News | providencejournal.com | The Providence Journal

Recent news articles indicated Obama would propose raising tobacco taxes on multiple tobacco products, but this AP article doesn't mention OTP.

Need to see Obama's budget proposal ASAP to see if it would tax e-cigarettes, and how much it would increase taxes on smokeless tobacco.

 

[Renolizzie]

Why can't we get out of the several wars we are in instead of using "sin" taxes to balance our budget.

Let's not cut the military but let's do cut Social Security and Medicare. What the hey?

I'm so frustrated with our government.

Most of the people I talk with are sick and tired of the war like attitudes of our country. It is costing us in lives and dollars.

This idea of taxing tobacco products more and more and more just doesn't work out. And this isn't going for our health care, it's going for 4 year olds to get preschool. When more people quit smoking then the money is gone anyway. That has happened. Less tobacco taxes coming in equals less senior buses. Again, this tax is supposed to be because smokers cost more in health care but none of it seems to for health care in our county. It goes to senior buses and senior centers.

End rant.

I sure hope they don't get into regulating and taxing the ecigs to death. I so enjoy them and I have quit smoking. Dang.

 

[Bill Godshall]

Found the full text of Obama's budget proposal at
http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/budget.pdf

Am looking for the tobacco tax proposal.

 

[Lessifer]

When did it become okay to just slap an extra arbitrary tax on a product? I bet it wouldn't just get glossed over if they added a dollar tax to every Starbucks purchase...

 

[Bill Godshall]

Read through Obama's entire 227 page budget proposal at
http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/budget.pdf

On page 22, it only mentions a proposed $.94/pack "cigarette tax" hike to fund early childhood education.

The investments in early childhood education
and development on the mandatory side of the
Budget are fully financed by raising the Federal
tax on cigarettes from $1.01 to $1.95 per pack. In
addition to financing important investments in
early learning, the proposed tobacco tax increase
would have substantial public health benefits,
particularly for young Americans. Researchers
have found that raising taxes on cigarettes
significantly reduces consumption, with especially
large effects on youth smoking.

The 227 page budget proposal does NOT mention any other "tobacco" or "excise" tax increase.

Thus, it appears that Obama's budget proposal is a huge endorsement of tobacco harm reduction, as e-cigarettes wouldn't be taxed while the tax on smokeless would remain at $.11 per can.

If Obama's tax hike only applies to cigarettes, and if its approved by Congress, e-cigarette sales would likely quadruple within a year (and smokeless tobacco sales volumes would likely increase by an additional 10%-20%).


Table S-5 (pg 189) proposes “excise tax” receipts to increase from $85B in 2013 to $105B in 2014, compared to $93B in 2014 in Table S-4 Baseline Budget (pg 187), a $12 B increase.

According to my calculations, a $.94/pack cig tax hike would generate $11B-$12B in new excise tax revenue).

 

[Renolizzie]

Read through Obama's entire 227 page budget proposal at
http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/budget.pdf

On page 22, it only mentions a proposed $.94/pack "cigarette tax" hike to fund early childhood education.



The 227 page budget proposal does NOT mention any other "tobacco" or "excise" tax increase.

Thus, it appears that Obama's budget proposal is a huge endorsement of tobacco harm reduction, as e-cigarettes wouldn't be taxed while the tax on smokeless would remain at $.11 per can.

If Obama's tax hike only applies to cigarettes, and if its approved by Congress, e-cigarette sales would likely quadruple within a year (and smokeless tobacco sales volumes would likely increase by an additional 10%-20%).


Table S-5 (pg 189) proposes “excise tax” receipts to increase from $85B in 2013 to $105B in 2014, compared to $93B in 2014 in Table S-4 Baseline Budget (pg 187), a $12 B increase.

According to my calculations, a $.94/pack cig tax hike would generate $11B-$12B in new excise tax revenue).

Thanks for reading through all of that, Bill Goodshall. Nice to know they aren't attacking safer THR products.

More and more people are using ecigs and not smoking. This is a good trend.

 

[Bill Godshall]

Wells Fargo's Bonnie Herzog on Obama's proposed $.94/pack cigarette tax increase

Higher Cigarette Prices Could Incrementally Boost E-Cigs - A federal tax hike on traditional cigs would very likely be followed by list prices increases from the manufacturers in excess of the federal increase as well a likely uptick in state tax increases. These could in aggregate raise cigarette prices upwards of $2.00/pack. Since e-cigarettes are not currently federally taxed, this would widen the price gap of e-cigs vs. traditional cigs. Since smokers in general tend to be lower income and we believe were disproportionally affected by the payroll tax increase, this could spur greater interest and trial in e-cigarettes. We continue to believe consumption of e-cigs will surpass that of traditional cigs in the next decade.

and

Obama's 2014 Budget Proposal Calls For $0.94/Pack Tax Increase on Cigarettes -This morning, President Obama released his 2014 budget which proposes a cigarette federal excise tax (FET) increase of $0.94/pack from the current $1.01/pack. This would fund pre-school education for children over the next decade and nearly double the cigarette FET to $1.95, raising nearly $78 billion. We believe the proposal has a low chance of passing in its current form given (1) House Republicans, who tend to oppose tax increases, are more prominent in Congress now vs. in 2009 when the last FET increase was passed and (2) this tax would unfavorably impact some of the more vulnerable income populations (i.e. moderate-to-low income households).

 

[thewrightstuff]

Here in NY where they are well over 10 bucks a pack because of exorbitant taxes, it makes a lot of difference. I wonder if this will be "removed" from the budget due to pressure from the lobby.

 

[mostlyclassics]

Obama has yet to propose a budget that can garner any more than a couple of votes. This one, in its entirety if not in its parts, is DOA.

 

[Petrodus]

Obama has yet to propose a budget that can garner any more than a couple of votes. This one, in its entirety if not in its parts, is DOA.

In order for Washington to REALLY balance the nations check book...
we need both sides of the isle considering it to be a priority.

In 2008 Obama said the National Debt at $9 Trillion was UN-patriotic
(Reference: Click Here)
What is the debt now ?? ... Almost $18 Trillion (Link)

 

[sbdivemaster]

Oblamer knows these budgets won't pass; he puts them out there knowing they will be rejected by almost every member of Congress - then he get's to say, "See, those Republicans are getting in my way! If only I was a dictator instead of a president... {sigh}"

 

[Petrodus]

I'm beginning to think there are some on the left
who were "dancing the street" when he was elected
and Obamacare was voted into law (without reading it) ...
are now starting to re-think their position.

 

[sbdivemaster]

I'm beginning to think there are some on the left
who were "dancing the street" when he was elected
and Obamacare was voted into law (without reading it) ...
are now starting to re-think their position.

I know there are...

 

[BuGlen]

Oblamer knows these budgets won't pass; he puts them out there knowing they will be rejected by almost every member of Congress - then he get's to say, "See, those Republicans are getting in my way! If only I was a dictator instead of a president... {sigh}"

I'm beginning to think there are some on the left
who were "dancing the street" when he was elected
and Obamacare was voted into law (without reading it) ...
are now starting to re-think their position.

Really? Is it possible that we can have these discussions without the obvious partisan comments? Please?

 

[Petrodus]

Understood ...
However, regarding issues we are dealing with ...
The buck doesn't stop with the FDA ... The buck stops
higher up the ladder.

 

[datacreek]

Really? Is it possible that we can have these discussions without the obvious partisan comments? Please?

No, hence the debate.

 

[Renolizzie]

No, hence the debate.

I think the partisan politics is getting old. I don't think you have to be 100% Dem or Republican. Many people vote for who they think will work out the best but the problem is we are looking at who won't be the worst lately. So sad. What can you do?

 

[Petrodus]

I think the partisan politics is getting old. I don't think you have to be 100% Dem or Republican. Many people vote for who they think will work out the best but the problem is we are looking at who won't be the worst lately. So sad. What can you do?

Hedge your portfolio with Gold and Silver

 

[BuGlen]

No, hence the debate.

Debate? I thought we were discussing a very specific part of the presidential budget proposal, but I could be mistaken.

Honestly, if you really want to debate partisan values and ideology, I invite you to frequent the http://www.e-cigarette-forum.com/forum/outside/ sub-forum. There are literally dozens of threads there addressing social issues, forms of government, economy, and a variety of other timely topics. Come on by, we'd love to have you.

 

[stillnotsmoking]

100 years ago most taxes we pay today didn't exist, and guess what? The US was one of the most prosperous countries in the world with a BOOMING middle class. Go figure.

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