House offers deal on tobacco tax that exempts cigars

In the latest closed-door offer to the Florida Senate offered by the House chief budget negotiator, Rep. Dean Cannon, the House abandons its no-taxes position and instead agrees to the Senate's $1-per-pack increase in a cigarette tax. But, in a slight to the Miami delegation and a nod to Tampa's lawmakers, it also imposes a new tax on tobacco companies that don't pay the state a settlement fee and eliminates the new $1-per-ounce tax on cigars.

The measure is aggressively opposed by Dosal Tobacco, the home-grown Miami company that makes low-cost cigarettes. It was sued but dismissed from the state's 1994 lawsuit against Big Tobacco. Persuading the state to impose a fee on Dosal and other non-settling manufacturers has been a top priority of the nation's cigarette giants this session, next to killing the cigarette tax.

To protest the move, Dosal announced today that it will close its plant on Friday and bus all its employees and their family members to Tallahassee to send the message they don't want their jobs threatened by the legislature's budget fix.

"These people need their jobs,'' said Yolanda Nader, CEO of Dosal. She said that if the state believes the company ought to be paying into the settlement, it should not have dismissed Dosal from the original lawsuit 15 years ago.

Their concerns may be short-lived, however. Senate budget chief, J.D. Alexander, R-Lake Wales and Senate President Jeff Atwater have said they don't support the tax on nonsettling manufacturers like Dosal. As to the Cannon offer that trades cigars for cigarettes, Alexander said Thursday: "We're not too keen on that.''

The company has produced this television ad and will begin airing it in Tallahassee this weekend.

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Comments

[Angry Taxpayer!]

The Republicans don't care about "people's jobs" - heck no, they're only interested in those who can donate to their PAC!!!!

The only "trickle down" theory they truly believe in is the one where the ordinary people are down the hill from the outhouse!!!!!

[Fed Up]

Now that Republicans have shown themselves to be no different on tax policy than Democraps, we should vote every single one out.

Raise taxes on cigarettes at your own peril.

[Disgusted Tax Payer]

I just returned from a restaurant in Pinellas Park and recently went to Wal Mart near there. I have never in my life seen so many fat slobs.

Saying that we need to raise taxes on cigarettes due to health care costs is a ruse.

You think smokers cost Medicare/Medicaid? These slobs are on every drug known to man and visit to Doctor weekly for heart, leg, knee, high blood pressure, cholesterol and every other illness know to man. Many are on permanent disability to boot.

But you can't pick on a fat slob like you can a smoker.

Check Atwater's donations from Dosal.

[Idiot Taxpayer!]

Angry Taxpayer! - yeah, the political donations of the tobacco companies is nothing in comparison to the donations from joe taxpayer...

[']

let JD and Cannon snipe at each other all they want. In the end all either one of them care about is the choo-choo.

[St. Lucie GOP]

All of these Republican House members should be voted out for this. I cannot believe my eyes.

[dc]

Gotta love the overspend, tax and overspend some more Republicans. "Hey, if we call it a user fee, no one will know its a tax."

Oh, and anyone caught with tax free Seminole Tribe smokes off their property, we'll fine $1000. Maybe we can set up cameras in people's houses next.

[Equalizer]

This is over the top. These republicans have about as much principle as the socialists on the other side of the isle. This tax selection scheme is pathetic.

It is time to get rid of republicans and elect some Independents who are not beholden to all these competing business interests.

[Vote them out]

The last line of defense against new taxes was House Leadership and they just folded like a cheap suit.

[Player]

Memo to Future Statewide Candidates

Putting a small company from Miami out of business will not sell well in the voter rich Cuban communitty.

Raising taxes will not sit well with Republicans.

Carrying Big Tobacco's water against a small company will look great in a mail piece.

[An Insider]

The Hispanic delegation just got rolled.

Cant wait to hear the explanation in Cuban radio.

[Settle]

This is not done folks. Relax ...

[Interesting]

So Dosal gave $10,000 to Atwater's CCE ?

[Where is the Sunshine?]

JD doesn't support taxing Dosal. That's nice payback for Dosal's hottie lobbyist running JD's campaign. Good work, Rhett.

[Dale Earnhart Jr.]

Rhett better be tuning up his race car because he won't be with Dosal much longer.

[Eyes Wide Open]

I will note who in my district voted for this tax and actively campaign against them on the next election cycle.

I am so sick and tired of these money grubbing politicians. Every day there is a new tax, higher costs and fees.

The first Boston Tea Party was in response to a 1.5% tax on tea. I am paying over 50% of my income in taxes and they say it is not enough.

Well I have had enough!!!!

[Brunito]

I won't name any names but if the Senate caves and Dosal gets screwed you will need to look beyond the obvious for the real culprit.

All I will say is that his brother is running for the Florida Senate.

More to come.

[Mary]

Notice they did not raise the tax on cigars...that's because all of these "fat-cat, good ole boys" smoke 'em. When are we going to get smart and kick them all out!

[Paul]

When in doubt tax the poor, they don't have anything to loose.

This is the republican manifesto.

Take care of the rich. The poor have no voice and can not help them to get elected.

[Work hard and get rich...]

Paul - assume you are saying that a tax on smoking is really taxing the poor, since the poor smoke...

Funny thing is... everyone has a choice... if the poor can't afford it... then they should quit... and the smoke tax will be on the rich...

Now... if the poor choose to say work harder so they can make more money to afford to smoke... then great... they will start understanding that working hard and getting more money actually results in a benefit...

[Crilly]

Why aren't cigars taxed also? I'd love to hear their explanation.

[it is by design...]

Crilly - because, especially if Dosal is not taxed, it will allow big tobacco to file suit on fair trade/inter state commerce grounds and it will be negated by the courts...

Probably by design...

[Michelle O Has Backhair]

Every time the illegal Latinos mass at the Capitol, there are always signs with the same handwriting on them because none of these people being forced to Tally on a bus can read or write in English. Just wait and look at the pictures of them posted on this web-site. If it weren't so sad that somebody would take advantage of their illiteracy(see education and health care shortfall), it would be funny!

[Mary]

Bottom line: This is NOT an equitable tax. They are picking out a segment of the population to tax. By that arguement, let's tax all kosher foods - the Jewish community would love that, huh? Or, as I've said in all the blogs regarding this tax, tax golfers greens fees. After all, last I heard, not too many avid golfers are all that poor. No, they picked cigs. because they KNOW people that smoke are physically addicted and many, such as myself, would LOVE to quit and have tried every quit-smoking product on the market, to no avail. So, if the state is going to impose a tax, it should be a tax that affects EVERYONE. Cherry-picking who should be tax is just not fair.

[Tax the rich and we can reduce the size of government!]

Paul - let's agree to put a tax on the rich. I think we can agree that taxing the rich is fair, since the rich have been gettin over tax-wise for 30 years or so.

Funny thing is... everyone has a choice... if the rich can't afford the taxes... then they should quit being so selfish and greedy, stealing everyone else's resources and polluting the planet.

Now... if the rich choose to live withing their means and practice a sustainable lifestyle... then great... they will not need to bribe politicans for the corporate welfare and tax breaks they've been getting. Heck, there'd be more resources to go around, less people sick and starving; we could probably afford to reduce the size of government. If the rich weren't so greedy...

[overtaxed]

In keeping with usual practices, the house has no debate, and in secret tries to pass something with no bill, no debate. I'm shocked.

[PJ]

Paul,

There is nothing that will decrease the size of the government. The like interfering in our lives way too much. The more revenue they have the more government positions they will create for any cause they think we need to be involved in. We don't need to add additional taxes to those who own businesses that employ Americans and spend their disposable income in the United States keeping the economy flowing.

We do need to reduce government waste and fix programs that are leaking money and hurting the our economy.

[PJ]

Crilly,

One word: Jobs. SCHIP will cost Americans 115k + Jobs. Keeping the cigar tax in this bill would cost 10k + Floridians jobs.

[Watchit]

20% of the payments the State is due each year to cover medical expenses for smokers is not being paid. This is several million dollars each year. The reason they go unpaid is that the companies pay based on their market share. Dosal has gone form 1 % to 20% of the market and therfore several hunderd millions of dollars will not be paid because Dosal doesnt participate in the agreement.They pay Atwater and Alexander a few thousand each year instead. The only winners here is Alexander , Atwater and Dosal.

[Kurt]

Just stop letting free-loaders inherit money. No need for taxes then...any of them.

[shannon]

look our gov hard at work again....instead of tring to figure out the problems with the education system and the economy make it harder on the people that work their a** off. we (the working poor) have an adiction to the nicotine in cigs and have tried all the quit smoking methods that are out there....we do not depend on the gov for assistance we do not get food stamps instead we have two full time jobs and are barely making it. now let's add more taxes.....

[Rino Hater]

RINOS!!!!!!!!!!!!

[Frank]

On On the policy front, Dosal is correct. THey were dismissed from a lawsuit. Its absurd to impose a special tax on them before they are convicted in a court of law. Totally absurd.

[Big Tobacco Lies]

Seriously, how many times does Big Tobacco have to come in and lie before folks realize this is all a ploy. Obviously they want to put one company out of business so they can gobble up their market.

Duh.

[Pat Bassett]

I don't even smoke, but this sure resembles what happened to PRESTON TUCKER!!!!!!!!

[chantix]

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