WASHINGTON -- However they satisfy their nicotine cravings, tobacco users are facing a big hit as the single largest federal tobacco tax increase ever takes effect Wednesday.
Tobacco companies and public health advocates, longtime foes in the nicotine battles, are trying to turn the situation to their advantage. The major cigarette makers raised prices a couple of weeks ago, partly to offset any drop in profits once the per-pack tax climbs from 39 cents to $1.01.
Medical groups see a tax increase right in the middle of a recession as a great incentive to help persuade smokers to quit.
Tobacco taxes are soaring to finance a major expansion of health insurance for children. President Obama signed that health initiative soon after taking office.
Other tobacco products, from cigars to pipes and smokeless, will see similarly large tax increases, too. For example, the tax on chewing tobacco will go up from 19.5 cents per pound to 50 cents. The total expected to be raised over the 4 1/2 year-long health insurance expansion is nearly $33 billion.
Smokers are mulling their options.
Standing outside an office building in downtown Washington last week, 29-year-old Sam Sarkhosh puffed on a Marlboro Light. His 8-year-old daughter has been pleading with him to quit, he explained, and he has set a goal to give up smoking by his 30th birthday.
"I'm trying to quit smoking, and it could help," said Sarkhosh, an information systems specialist. "I don't think it will stop me from buying cigarettes every now and then, but definitely not as often." A friend who smokes Camels went out and bought four cartons in advance, he said.
The tax increase is only the first move in a recharged anti-smoking campaign. Congress also is considering legislation to empower the Food and Drug Administration to regulate tobacco. That could lead to reformulated cigarettes. Obama, who has agonized over his own cigarette habit, said he would sign such a bill.
Prospects for reducing the harm from smoking are better than they have been in years, said Dr. Timothy Gardner, president of the American Heart Association. The tax increase "is a terrific public health move by the federal government," he said. "Every time that the tax on tobacco goes up, the use of cigarettes goes down."
About one in five adults in the United States smokes cigarettes. That's a gradually dwindling share, though it isn't shrinking fast enough for public health advocates.
The Centers for Disease Control and Prevention says cigarette smoking results in an estimated 443,000 premature deaths each year, and costs the economy $193 billion in health care expenses and lost time from work. Smoking is a major contributor to heart disease, cancer and lung disease.
Public health officials are urging individual doctors and staff at telephone "quit lines" in every state to make the most of the tax increase by reaching out to smokers. But it's unclear how deeply the tax will cut into tobacco consumption.
Eric Lindblom, research director for the Campaign for Tobacco-Free Kids, says he expects a drop of at least 6 percent to 7 percent among young smokers.
Philip Gorham, who tracks the tobacco business for Morningstar, the investment research firm, said he expects an overall drop of 4 percent to 5 percent this year. What happens after that is less certain, especially as the economy recovers.
"I would expect a road bump this year," said Gorham. "But these companies will still be extremely profitable. I still think they will make their return on capital by wide margins in the long run."
Philip Morris USA, the largest tobacco company and maker of Marlboro, is forecasting a drop, but spokesman Bill Phelps said he cannot predict how big. Philip Morris raised Marlboro prices by 71 cents a pack early this month, and prices on smaller brands by 81 cents a pack. Other major companies followed suit.
The pricing moves raised eyebrows. "That's nothing more than greed," said Kevin Altman, an industry consultant who advises small tobacco companies. "They weren't required to charge that until April 1. They are just putting that into their pockets."
Responded Phelps: "We raised our prices in direct response to the federal excise tax increase, and people who are upset about that should find out how their member of Congress voted, and contact him or her."
Some policy analysts have questioned the wisdom of boosting tobacco taxes to finance health care for children. They argue that the fate of such a broad program should not depend on revenues derived from a minority of the adult population, many of whom have low incomes and are hooked on a habit. The tobacco industry is also warning that the steep increase will lead to tax evasion through old-fashioned smuggling or by Internet purchase from abroad.
But smoking control advocates such as Lindblom say tobacco taxes should be even higher. "There's a lot of room to go after cigars and smokeless," he said. "We are certainly hopeful that health care reform will include some more increases."
Standing outside a Washington department store, attorney Margaret Webster, 42, puffed on a Marlboro Ultra Light and lamented the fact that the government is reaching deeper into her pocketbook.
"I don't think we (smokers) like it," she said. "But I've heard so many people say they were going to quit when the price went up ... and they're still smoking."
% Of Smokers Who Will Quit - New Tax Wednesday
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% Of Smokers Who Will Quit - New Tax Wednesday
How many will quit when this hits? Anyone here...or does anyone here know anyone else who this will give the incentive to quit or they have already quit lately?
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
"The tobacco industry is also warning that the steep increase will lead to tax evasion through old-fashioned smuggling or by Internet purchase from abroad"
I will be purchasing my smokes from one of the above avenues.............
I will be purchasing my smokes from one of the above avenues.............
Re: % Of Smokers Who Will Quit - New Tax Wednesday
I was forced to quit smoking nearly 2 months ago on Groundhog Day because I simply couldn't afford to buy cigarettes. At that time, I didn't know about the tax increase coming up. With that added, I REALLY couldn't afford to smoke now.
Yet another "pleasure" to become illegal, immoral, bad for you, and now unaffordable to boot! Is there any joy/pleasure left in life? Very little!!!
Yet another "pleasure" to become illegal, immoral, bad for you, and now unaffordable to boot! Is there any joy/pleasure left in life? Very little!!!
Re: % Of Smokers Who Will Quit - New Tax Wednesday
caglewis
congrats on not smoking.......
FIDO, quit a few months back too, he said he feels much better,
now, if we can figure out how to help his looks
congrats on not smoking.......
FIDO, quit a few months back too, he said he feels much better,
now, if we can figure out how to help his looks
Re: % Of Smokers Who Will Quit - New Tax Wednesday
abuck76 wrote:and his disposition.....
:12224
I don't know about FIDO, but "not smoking" has certainly done NOTHING to improve either my disposition or my looks [or, for that matter, even the way I feel] - it's just made my life more miserable!! I'm still NOT smoking, though, for the same reason I don't eat steak - I just can't afford it, but I sure do miss it!!
Last edited by caglewis on Sun Mar 29, 2009 7:12 pm, edited 1 time in total.
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
FIDO wrote:gahs4ever wrote:I ant afford to have to smuggle Little Debbie cakes into the country, and I have visions of my new roommate "Bubba" asking me what I'm in for and not understanding my sweet tooth; especially since I dont have any teeth!
I think I would have a tougher time of giving up my sweets than the smokes. :oops: :oops: :oops:
Since I have had a problem with being overweight most of my life, I now have to give up enjoying the pleasure of BOTH food and smoking! And "there is no joy in Mudville" [it's from a poem] is even more true for me now than ever before.
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
caglewis wrote:I was forced to quit smoking nearly 2 months ago on Groundhog Day because I simply couldn't afford to buy cigarettes. At that time, I didn't know about the tax increase coming up. With that added, I REALLY couldn't afford to smoke now.
Yet another "pleasure" to become illegal, immoral, bad for you, and now unaffordable to boot! Is there any joy/pleasure left in life? Very little!!!
Caglewis, if I remember correctly, you were an R.N.
You know the benefits of not smoking.
You might not feel better but your lungs are rejoicing!
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
biggdowgg wrote:caglewis
congrats on not smoking.......
FIDO, quit a few months back too, he said he feels much better,
now, if we can figure out how to help his looks
Hey!
My Sweetie Pie, FIDO, is a hunka....hunka....burnin' love!
He is cute too!
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
You just run from one Cutie Pie to another, don't you? poor Ole' Turk! yu know he's been seriously deflated!
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
kantuckyII wrote:You just run from one Cutie Pie to another, don't you? poor Ole' Turk! yu know he's been seriously deflated!
Like I said before, if you aint over on that other forum running down our President you are over here riding my back........why dont you make everyone happy and stay over here and ride me so them other intelligent and religious folks can have a decent discussion.........I will be glad to talk politics and religion with you, of course I am not as intelligent as you are when it comes to Obama, the Pope, Billy Graham and evolution but as you know I can fake just about anything..........
I am going to the barn to put the saddle on, so stay here and climb on and ride a while.........
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
I'd love to see you over there..especially if you can prove anything they say. Should be interesting.
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
kantuckyII wrote:
Medical groups see a tax increase right in the middle of a recession as a great incentive to help persuade smokers to quit.
I sent the president a similar recommendation the other day. Since obesity has overtaken all other sins (including smoking) as a source of many illnesses, I suggested he put a two dollar per pound tax on sugar. Think of all the money that would raise for them to waste.... I mean spend.
Not only that but look at how much healthier all the fat/obese non-smoking whiners on here would be.
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
kantuckyII wrote:You just run from one Cutie Pie to another, don't you? poor Ole' Turk! yu know he's been seriously deflated!
He is my Cutie Pie.
FIDO is my Sweetie Pie.
Get them straight.
Re: % Of Smokers Who Will Quit - New Tax Wednesday
TheMalteseFalcon wrote:kantuckyII wrote:
Not only that but look at how much healthier all the fat/obese non-smoking whiners on here would be.
Yeah, with everyone being like you and paying the taxes together, since no more smoking, drinking, and/or obese would mean no one left to pay the taxes but perfect people like you...... Your governemnt says thank you now we'll give the money to a needy Banker or Auto Maker.... but we won't help you.....
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
drdano wrote:TheMalteseFalcon wrote:kantuckyII wrote:
Not only that but look at how much healthier all the fat/obese non-smoking whiners on here would be.
Yeah, with everyone being like you and paying the taxes together, since no more smoking, drinking, and/or obese would mean no one left to pay the taxes but perfect people like you...... Your governemnt says thank you now we'll give the money to a needy Banker or Auto Maker.... but we won't help you.....
What??? I haven't the foggiest idea what that "paragraph" says.
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
kantuckyII wrote:I'd love to see you over there..especially if you can prove anything they say. Should be interesting.
and your question is......I dont try to prove anything to you............ and I wont...........and I dont have to..........
Last edited by BubbleGumTiger on Mon Mar 30, 2009 6:18 pm, edited 1 time in total.
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Re: % Of Smokers Who Will Quit - New Tax Wednesday
This is one tax that I wouldn't care how high they raised it. Hopefully, more people will quit now.