New Cigar and Cigarette Tax

As person who enjoys smoking cigars and is outraged, I thought I would bring to people’s attention this new tax on Cigars and Cigarettes. This from USA Today:

“Smokers are gasping at higher cigarette and cigar prices as the largest federal tobacco tax increase in history takes effect.

“Oh my gosh,” Bernardo Torres said Tuesday when a clerk at a CVS Pharmacy in Falls Church, Va., told him the new price, which went up in anticipation of the tax increase. Torres wanted to buy his aunt two cartons of cigarette-size cigars, but he walked away empty-handed after hearing the new price: $134. The tax on little cigars went from 4 cents to $1.01 a pack.”

First, they could only do this for a “just” cause which is to pay for children’s health care, which makes you believe that it is a ploy to get more revenue for a deficit ridden federal government. At the same time they talk out of the other side of their mouths hoping that this is going to reduce consumption. They cannot have it both ways. If the tax does the second thing then how will they fund the children’s healthcare?

Second, we have to remember that most Cigarette smokers are relatively poor than others. That means that this is just a tax upon the poor. Someone could argue that these are the exact people the policy is trying to help. This is also, in its purist form, tyranny of the majority.

Thirdly, this policy assumes that children’s health care can not be taken care of in the private sector. Assuming that all of this goes to actualy kids and so on because there have been arguments that the definition of who the money goes to is loose. The system we have in place today is a heavily interventionist policy, thus creating the problems. If people could explain to me why the supposed “free market” system does not take of this problem, I am will to hear.

The rest is here.


Published in: on April 2, 2009 at 12:07 pm  Leave a Comment  
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