Ravenwood - 01/14/04 07:00 AM
The Washington Post reports that with $235 Billion in tobacco money up for grabs, states are lining up to protect tobacco companies from competition.
Numerous states are considering or have adopted legislation aimed at increasing the price of discount cigarettes and protecting the market share of the "Big Four" tobacco companies -- Philip Morris, Lorillard, Brown & Williamson and R.J. Reynolds. [...]The legislation they want to pass would be an artificial price increase on generic and off brand cigarettes, aimed at reducing the market share of the major brands. The National Association of Attorneys General figures that the proliferation of generic cigarettes has "cost" states $600 Million."We need to guarantee a continuing flow of revenue that we use to help balance Virginia's budget and pay for health care and economic development in the tobacco-dependent regions," said Sen. Charles R. Hawkins (R[INO]-Pittsylvania), who plans to introduce legislation targeting the independents.
In reality, they have only themselves to blame. The tobacco settlement and the prohibitive increases in state and local cigarette taxes are driving smokers away from the major brands. As Owen Courreges so elequently writes, "How morally bankrupt can you get?"
Category: Pleasure Police
Comments (2) top link me
Odd. Sounds like a sales tax: a number of states have some sort of commodity tax stamp which is the same regardless of selling price. Of course, they then have a sales tax as well (can you say "double taxation"), is that what this is? Wouldn't it be simpler to raise the tax stamp price?
Of course, they might look at New York City, which is losing a lot of revenue because when the taxes people who could went elsewhere and those who couldn't now buy from street dealers. The NYPost this week interviewed one of these, who says he makes more selling packs out of a trash bag than he did dealing drugs. His market may expand now that the nannies with the nanogram brains are trying to ban any but "self-extinguishing" cigarettes. Huh?
Oops: "when the taxes were raised people"
Posted by: John Anderson, again at January 15, 2004 2:35 PM(c) Ravenwood and Associates, 1990 - 2014