Big Tobacco moves closer to tax hike

Big Tobacco appears more ready than ever to accept a higher cigarette tax in Florida — but only in return for an extra fee on a rising competitor: Dosal Tobacco Corp.

The Opa Locka discount manufacturer has exploded into a statewide market force on the strength of its dirt-cheap "305's'' cigarettes. Dosal has undercut competitors largely because it doesn't have to pay settlement fees from the state's tobacco lawsuit over deceptive marketing and the cost of treating sick smokers. (story here)

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Comments

I used to smoke and right after the lawsuit, there were so many cigarettes sold in Florida that did not bear the Florida excise tax stamp... these are products that Phillip Morris typically sends overseas to countries that have no regulation... they tasted different than the "regular" taxed ones... god only knows why and what additional impacts on health the deceptive companies introduced by this manuever to recoup settlement fees... my guess is they made back their share of the 11.3 billion that year alone and now are only causing a stink because they got away with it and now want to enjoy the same level of profits from their illegal activity.

My question however is... why is Dorsal exempt from the fee?

They were not part of the settlement after being dismissed from the suit. Why should they pay something from the suit that they weren't part of? Stop crying and go smoke.

Instead of taxing smokes, I say why not tax obese people? Their health problems are worse than smokers.

Down with fat people.

I say let them smoke and be fat...it makes it much easier to identify those who are complete morons. Then you can easily avoid them.

[terminator]

Opa Locka? 305?

Those must be some real gangsta smokes.

Figures some dirtb** like Rudy
Garcia would be carrying their water.

What's Rudy's cut on the deal?

If people stopped smoking, there would be a savings in health care costs, but only in the short term. Eventually, smoking cessation would lead to increased health care costs.

Why pick on Tobacco - at least we have freedom to choose whether to accept their filth into our bodies? We need to raise taxes on them AND every other big business that dumps pollutants and scum into our environment. And that includes Big Sugar.

Problem Solved!

So noble of Phil;p Morris. Hey, we will agree to let you tax our product - a tax we pass straight through to consumers - if you agree to give us even more market share by putting competition out of business.

Give them a plaque.

Did Dorsal lie to Congress and engage in fraud and racketeering? Curious.

[Gator(R)]

I believe there was a Canadian study done that essentially confirmed 12:22's point. Apparently, the long-term health care costs for a non-smoker exceed those of a smoker - they live longer, ultimately have health issues which are spread over a longer period of time. I don't know if their study included the impact on their equivalent of social security. My understanding is that one contributing factor in Social Security's funding issues is that people are living longer, thus collecting benefits longer, because fewer people smoke.

Obviously a health issue, but people make choices regarding their health and well-being all the time. Bungee-jumping, motorcycle riding, skiing overeating, eating unhealthy foods, etc. that may have a negative impact on health or even life.

But as always, we are in favor of raising taxes on something we don't do, or on people that make more than us - the American way.

[surfdog]

President Bush said the Republican Party could benefit from having another Bush, his younger brother, former Florida Gov. Jeb Bush, in Washington.

"He would be an awesome U.S. Senator," the president said.

In an interview with RealClearPolitics, President Bush said that both the GOP and the state of Florida would gain from having Jeb Bush in the Senate.

"He is a proven leader who, when given responsibilities, succeeded," Jeb's older brother said.

The ex-governor is considering a 2010 bid for the seat held by Sen. Mel Martinez (R), who has decided against running for a second term. Jeb Bush served two terms as governor, from 1999 to 2007.

I SAY WAIT TILL JEB IS SENATOR OF FLA ALL OUR PROBLEMS WILL BE SOLVED

I MEAN YOU KNOW HE WILL DO GOOD GEORGE SAYS SO AND LOOK HOW GREAT HE WAS!

surfdog- It's not even Jan 20 '09 and who got the monkey on his back now? If I say the "chimp," who be dat? If I say the "monkey," who be dat? If I say the "chimp" got the "monkey" on his back, what it is?

Don't let big tobacco buy the death of its competition.

People shouldn't smoke. It is addictive, and it will kill them. It cost our taxpayers over $500 per household to pay for the tobacco related health cost... we should raise taxes to help cover this tax burden, and to discourage smoking. (http://www.tobaccofreekids.org/reports/settlements/toll.php?StateID=FL)

Big Tobacco pays the settlement because they lied and manipulated the people of Florida for a century. The new companies can charge less because they were not part of the original exploitation

Don’t let Big Tobacco, and its 900 million dollar investment in Florida politicians, get anything other than a new tax.

A $1 tax increase would raise our state over $500 million dollars a year, $500 million towards our deficit that we desperately need!

[the scapegoat]

10:56 -

That is not a completely true statement.

People knew tobacco was a problem before there was "Big Tobacco" as you call it.

Cigarettes were called "coffin nails" over a century ago.

St. Petersburg's great benefactor, Mr. Tomlinson, built a school in 1901 and had the children promise that they would not use tobacco. When they graduated he gave them $20 each. Of course back then a mans word was his bond and a promise was a promise.

Moreover, "Big Tobacco" doesn't pay any settlement money. They raise the price of the product to pay off the dirtbag lawyers who shook them down. The user pays.

If a company is an on going concern, they decide what there target profit margin is going to be. The user pays 100% of the profit and all other costs.

10:56 this is really basic stuff.

10:56 this is really basic stuff, and so is the reality that I can take my commerce to whichever company is selling the same goods for the cheapest price. They will absorb some of the extra cost of the tax to undercut their competition to get my business. So taxes DO affect the manufacturer, except where's there's a monopoly. As always, scapetoad's blather is mostly conservative propaganda, though it does incidentally point out one of the true reasons why conservatives hate government oversight. Without it, Big Business is free to pass on ALL of the external costs of doing business, which should be subtracted from their profits, right back onto you, the taxpayer. You can thank this abolute worship of deregulation for the Great Bush Depression of 2008.

[the scapegoat]

2:02 All costs including profits are borne by the products purchaser. The profit is what is left after all expenses are paid.. The so called settlement money is part of the cost of doing business.

All markets are always free. As these dirtbag politico/lawyer shakedown businesses for payoffs, a black market will emerge which by passes the laws and taxes.

If Florida's taxes are excessive a simple drive to Georgia will remedy that. Just buy enough smokes to resell and cover your costs and make a little profit. It is a form of arbitrage.