The Readers On The Cigar Tax
My Sunday column objected to the idea in Congress of imposing a 53-percent excise tax on cigars, with a maximum possible tax of $10 per stick. Among the several interesting e-mails in response:
The federal excise tax on a 12oz bottle of beer is 5 cents, an 8oz glass of wine is 7 cents, and a 1oz shot of liquor is 9 cents, which is why the current rate of 5 cents a cigar (or even twice the current rate at 10 cents a cigar) is reasonable and proportional to other, similar products. But, as you well noted, a 20,000% cigar tax increase is grossly disproportionate (especially when cigarette taxes will increase only 156%) and will destroy the cigar industry. Because federal excise taxes are imposed at the wholesale price level, we expect that a 20,000% cigar tax increase will cause retail cigar prices to increase 2.5 times. -- Drew Newman, Great-Grandson of the Founder, J.C. Newman Cigar Co., Tampa
If you don't believe the kids on the corners are smoking cigars; who do you think is buying the pineapple, raspberry, blueberry, etc. cigars, that are so commonly available in the convience stores? -- James Durkin
53% tax? I recall many decades ago seeing a study on 'ALL' taxes on a loaf of bread, from planting of the grain to the wrapping. I don't recall the actual percantage, but the loaf of BREAD itself was practically free! Happy smoke rings -- Ol' Miller
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Those flavored things sold in gas stations shouldn't be called cigars. They have more in common with a cigarette than they do a real handmade cigar.
Posted by: Cigar Jack | July 30, 2007 at 01:03 PM
Despite the obvious harm to the Florida cigar industry, Sen. Nelson will not provide his position on this tax increase. I have waited two weeks for a reply from his office. Reminds me of probition of the '20s. I guess if you can't make a vice illegal the plan is to tax it to death.
Posted by: Ken Baltes | July 30, 2007 at 03:06 PM
not to mention, Jack, it's not the cigar industry's job to police who the attendant sells tobacco products to.
Posted by: RB | July 30, 2007 at 04:24 PM
"ONLY 156%". That sounds a tad high for an increase to me.
Posted by: Kay | July 31, 2007 at 10:11 AM
$100 a cigarette tax.
Posted by: | August 04, 2007 at 05:25 PM