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Biggest U.S. tax hike on tobacco takes effect

Posted on 01 July 2009

taxes1222829185Smokers 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.

“I don’t know what to do. This is going to hit her hard,” Torres said of his disabled aunt, 64, a heavy smoker who won’t quit.

“I’m going to quit,” said Will Hues, 27, smoking a cigarette outside the store. He said prices have gone up so much that “you’re out of your mind to pay it.”

The increases, which raise the federal cigarette tax from 39 cents a pack to $1.01, applies to all tobacco products. It comes as more than two dozen states, desperate for revenue in a sunken economy, consider boosting their own tobacco taxes this year.

“This is very historic,” said Matthew McKenna, director of the Office of Smoking and Health at the Centers for Disease Control and Prevention.

Before the tax hike, cigarette prices averaged about $5 a pack. Now, tobacco companies are raising prices by different amounts. Some are absorbing part of the increase; others are raising prices more.

In the past, a 10% price increase reduced cigarette consumption about 4%, McKenna said. He expects the federal tax hike to prompt at least 1 million of the 45 million adult smokers to kick the habit.

“We expect this to accelerate the decline” in cigarette consumption, said Bill Phelps, spokesman for Philip Morris USA, the nation’s largest tobacco company. He said consumption has been dropping 3% annually for a decade. “Some people may quit smoking,” he said. “Others may cut back.”

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Nik Modi, a tobacco industry analyst at UBS, expects cigarette consumption to drop by about 9% annually. Tobacco companies won’t be badly hurt, he said, because they’ve prepared for the increase.

Last month, companies began raising prices to cover the tax increase. Marlboro maker Philip Morris raised prices by at least 71 cents a pack. R.J. Reynolds, maker of Camel, did so by at least 42 cents.

Congress passed legislation last year raising the tax to fund the State Children’s Health Insurance Program, but former president George W. Bush vetoed it. In February, President Obama, who has struggled to quit smoking, signed a new version.

Even tobacco-growing states such as North Carolina are considering increases. Two states, Arkansas and Kentucky, doubled their taxes this year.

The federal increase “will fall on those who can least afford it,” said Frank Lester, spokesman for Reynolds American. He said one in four smokers live at or below the poverty line.

“More lower-income people than higher-income people will quit” because they cannot afford the tax hike, said Eric Lindblom of the Campaign for Tobacco-Free Kids.

Cigarette taxes per pack

State State tax Federal Tax Combined
Alabama $0.425 $1.0066 $1.43
Alaska $2.000 $1.0066 $3.01
Arizona $2.000 $1.0066 $3.01
Arkansas $1.150 $1.0066 $2.16
California $0.870 $1.0066 $1.88
Colorado $0.840 $1.0066 $1.85
Connecticut $2.000 $1.0066 $3.01
Delaware $1.150 $1.0066 $2.16
District of Columbia $2.000 $1.0066 $3.01
Florida $0.339 $1.0066 $1.35
Georgia $0.370 $1.0066 $1.38
Hawaii $2.000 $1.0066 $3.01
Idaho $0.570 $1.0066 $1.58
Illinois $0.980 $1.0066 $1.99
Indiana $0.995 $1.0066 $2.00
Iowa $1.360 $1.0066 $2.37
Kansas $0.790 $1.0066 $1.80
Kentucky $0.600 $1.0066 $1.61
Louisiana $0.360 $1.0066 $1.37
Maine $2.000 $1.0066 $3.01
Maryland $2.000 $1.0066 $3.01
Massachusetts $2.510 $1.0066 $3.52
Michigan $2.000 $1.0066 $3.01
Minnesota $1.504 $1.0066 $2.51
Mississippi $0.180 $1.0066 $1.19
Missouri $0.170 $1.0066 $1.18
Montana $1.700 $1.0066 $2.71
Nebraska $0.640 $1.0066 $1.65
Nevada $0.800 $1.0066 $1.81
New Hampshire $1.330 $1.0066 $2.34
New Jersey $2.575 $1.0066 $3.58
New Mexico $0.910 $1.0066 $1.92
New York $2.750 $1.0066 $3.76
North Carolina $0.350 $1.0066 $1.36
North Dakota $0.440 $1.0066 $1.45
Ohio $1.250 $1.0066 $2.26
Oklahoma $1.030 $1.0066 $2.04
Oregon $1.180 $1.0066 $2.19
Pennsylvania $1.350 $1.0066 $2.36
Rhode Island $2.460 $1.0066 $3.47
South Carolina $0.070 $1.0066 $1.08
South Dakota $1.530 $1.0066 $2.54
Tennessee $0.620 $1.0066 $1.63
Texas $1.410 $1.0066 $2.42
Utah $0.695 $1.0066 $1.70
Vermont $1.990 $1.0066 $3.00
Virginia $0.300 $1.0066 $1.31
Washington $2.025 $1.0066 $3.03
West Virginia $0.550 $1.0066 $1.56
Wisconsin $1.770 $1.0066 $2.78
Wyoming $0.600 $1.0066 $1.61
Puerto Rico $1.230 $1.0066 $2.24

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    Are Electronic Cigarettes Safe?

    Posted on 30 June 2009

    electronic cigarette
    Since 2006, the electronic cigarette has attracted millions of people around the world who have switched from traditional cigarettes to the e-cigarette, also referred to as the “safe cigarette, the e-cigarette, and the smokeless cigarette”.

    Electronic cigarettes share some aspects of there traditional counterparts, such as appearance, feel and taste of a normal cigarette. But the differences are substantial in that the “safe cigarette” gets it’s name because it produces none of the negative aspects of traditional smoking like tar, ignition (heat), up to 4000 types of chemical additives that often lead to respiratory and cardiac system diseases, nor the carcinogenic effects of traditional cigarettes.

    Ever since the Surgeon General determined that cigarette smoking is hazardous to your health, cigarette companies have searched for ways to reduce tar and nicotine levels, in efforts to create a more safe smoking experience. Nothing, however, has ever come close to the electronic cigarette.

    This revolutionary new smoking alternative, not only simulates cigarette smoke but also the temperature associated with dragging off a common cigarette (50-60 degrees Celsius), thus adding to the psychological habit without adding the hazardous substances which have proven to cause cancerous, including carbon monoxide, nitrogen dioxide, hydrocyanic acid, acrolein, arsenic, lead and hydragyrum.

    Smokeless cigarettes were first viewed with trepidation but more and more have become embraced by the public as well as the Medical Association. E-Cigarettes are now manufactured by a number of different companies throughout the US and China and are readily available across the United States and Europe, even the some of the most ardent skeptics have become believers once they try the electronic cigarette.

    Adding to the safety benefits, the electronic cigarette has also been proven as a way for smokers to quit the habit, as the level of nicotine can be carefully monitored, thus giving the smoker the option of gradually lowering the level until he/she can quit without fear of withdrawals. Most electronic cigarette refill cartridges are available in full, medium, light and none, and while electronic cigarettes are not yet approved as smoking cessation devices, the potential for the devices to be used as such is somewhat obvious.

    It’s recommended that people who have demonstrated a sensitivity or allergy to nicotine, pregnant or breastfeeding, or who have unstable heart conditions should discuss the use of an electronic cigarette device with a doctor before using one. Additionally, electronic cigarettes may not be used by anyone under the legal smoking age in your state.

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    You Need Know These Stop Smoking Benefits

    Posted on 06 May 2009

    smokeless cigarette
    It’s been well laid out that stop smoking benefits commence just about instantly after you eventually arrive at the conclusion to go “smokeless”. Typically within less than half a day your body begins the procedure of naturally mending itself.

    As your body commences purging itself of the carbon monoxide gas & Nicotine in your system you might go through what personifies drug withdrawal symptoms. You shouldn’t worry too much as this is perfectly normal following any dependency. Instead of becoming worried be allowing yourself to focus on these temporary effects, it is better to consider the long full term health benefits.

    Just about instantly your blood pressure will start to go back to its natural state, likewise so will your pulse rate drop to normal. Normally inside just a few days you’ll observe a few impressive deviations in the way you physically feel. A large number of ex-smokers have reported improvements to their sense of taste and likewise to their sense of smell. You’ll likewise begin to feel that you can breathe easier too, and ultimately your smokers cough should begin to diminish.

    Within less than a week, your risk of sustaining a heart attack lessens dramatically. The nerve ends that bear damage due to your smoking habit will begin repairing themselves.

    After less than a month of not smoking your circulatory system will be improving which has the benefit of giving you more energy and you will find you won’t get tired as easily as before. The most important factor of all is that your lungs will begin a healing process. Over quit a short period you will find your lung capacity anywhere will increase by up to one third. The fine hairs called cilia in your lungs will commence regrowth, helping to keep your lungs clearer and step-up your power to battle infections.

    As you are able to see, the stop smoking benefits by far beat any of the hazards that you were opening yourself up to if you did carry on smoking. After 12 months of not smoking at all, research has demonstrated that you foreshorten your danger of coronary thrombosis disease by at least 50%. After five years your probabilities of enduring a stroke are just about equivalent to that of a person how has never, ever smoked at all.

    Never forget, this determination that you’ve arrived at is a lifetime dedication to remaining in good health. As you continue to avoid smoking you will begin to add days to your lifespan. You will also begin to importantly shrink your chances of being diagnosed with a serious illness such as cancer, pulmonary emphysema, cerebrovascular accident, and lung disease.

    I’m sure you already are well aware that the smoking habit kills more than 300,000 people every year. Chilling statistics once you stop to think of them. An additional plus factor is absolving yourself from the encumbrance of the sheer expense of smoking. You will no more incur be faced with the expense of cigarettes or the cost of the extra healthcare called for if you were to continue to carry on smoking.

    Try to consider giving up smoking like a journey. A journey that will guide to a more well-preserved and healthier life. The stop smoking benefits, once you sit down back and think about them objectively, far outweigh the effects of preserving a habit that will at length guide you to an early grave.

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