I've talked about the ones that got carried over from laast year - which were all pretty much dead in the water. But this one is a different story.

It incorporates all the other proposals, for a total of 25 cents and then adds a budget balancing addition, of another 25 cents for a total of 50 cents.

The News Journal of course had a gleeful story about it in the paper this morning. Cigarette Tax proposed
I will refrain from what I really would like to say about those that have introduced this.

Perhaps you could say this to them: American smokers are already paying $80 MILLION A DAY to the federal and state governments. Just how much more do you want to wring out of these decent, law-abiding people who constitute one-quarter of your constituency?

A good question, indeed, Wanda. Especially in light of an article, "What's Your States Latest Tobacco Payment," showing that our states reaped MILLIONS this month from the tobacco settlement according to the National Association of State Attorneys General.

To see what YOUR state hauled in this month from the tobacco settlement, check it out here:
http://www1.stateline.org/story.do;jsessionid=m3toyfuug1?storyId=233436

In other words, we're already paying through the nose via the tobacco settlement, but for some unexplained reason that's not enough to balance state budgets? We're being socked AGAIN through increased state taxes?

Is anyone else seeing red over this? I sure am.

The increased cigarette tax, will come from the pockets, of consumers purchasing in the state, but, not all tobacco settlement money is coming from american smokers .... but, globally from american tobacco's entire customer base. The USA, has fifty million smokers ... but, there is more, than a billion smokers worldwide ... american tobacco's have a fair slice of the global market. American smokers alone, could not sustain those huge payments.

If smokers in Delaware, want to see an end to this robbery ... they have two choices ... they can vote the rascals out ... or boycott the taxes, by purchasing elsewhere ... both methods, have historically worked.

You have to give politicians a reason of self-interest, "not" to increase cigarette taxes, before they will cease, ... "to" increase the tax, they need no other reason, than smokers have money, and will pay it.

It's my experience that a person can only be used as a "rug" for just so long....

After awhile, they will get tired of having people wipe their feet on you.

John L, I'm afraid that it's ONLY American smokers who are paying for the settlement. In fact, one of the stipulations in the agreement was that the settlement costs be passed on to the customers. And that's why we're paying $80 million a day (the figure includes settlement payments and taxes).

Wanda, do you have, a link to the exact agreement? I would like to look at it … my guess, there is quite a bit of wiggle room, for the tobacco companies … in it's actual implementation. The states, have a vested interest in receiving a great deal of money, over the next couple of decades … there going to give the tobacco companies, plenty of room … the government can stipulate anything … but, business world realities, can be quite different.

I own and run a computer company in Kansas City … trust me.

In my quest to find out exactly what we are paying in taxes on cigarettes, it's been a near impossible task.

For one thing, no one can tell me or won't tell me the base price of a pack of cigarettes. I need the base price in order to tally up the additonal money to find out the taxes. No one knows.

Not the ATF, not the RJR Tobacco Company, or the Maine State Revenue. Something isn't quite right. How can they not know?

I realize taxes vary in all the states, but there has to be a base price. They can't be $2.50 a pack before taxes in NY, and $2.95 a pack in CA, or $1.99 a pack in Maine. They should start out at one level base price.

This has been a nightmare. Too many chipmunks in the wood pile.....

Once I found out that even Mom & Pops can tack on their "own little tax," I threw my hands in the air.

~sigh.....

quote:

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Originally posted by John L:
If smokers in Delaware, want to see an end to this robbery ... they have two choices ... they can vote the rascals out ...

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BWAHAHAHAHAHAAAAAAAAAAAAA
John - I'm sorry, I'm not laughing AT you but your faith in the voters of Delaware----these are the same people that keep sending Joe Biden to the Senate every 6 years!!! I won't bother expressing my opinion about the other two that keep getting sent to Washington

quote:

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or boycott the taxes, by purchasing elsewhere ... both methods, have historically worked.

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Please see my comment above!!!!!

Darlene,

I came across something that might be a bit helpful - I can't help you with Maine - but here's a break down for Delaware:

$1.18 per pack in Delaware and federal taxes and the MSA payments.

Delaware tax is 24cents, Federal is 39 (?) that would leave 55 for MSA payments.

The tobacco companies aren't trying to dodge the pass-though provision of the MSA because they WANTED it. For one thing, it's tied only to the American divisions of the companies, so that even if the American divisions went belly-up, the international divisions would not be responsible for the payments. For another thing, if consumption goes down, payments go down (they are dependent on market share and total comsumption).

You can download a copy of the whole thing (as well as amendments) at http://www.naag.org/tobaccopublic/ShowListing.cfm?Lib=33&Cat=NULL&Sub=NULL

Wanda ... yes, I just read, thanks, you are correct regarding limited liabilities, but I can find no stipulation requiring the PM subsidiary, responsible for marketing and selling cigarettes, (Phillip Morris USA) in the states, must obtain the MSA payments from the pockets of american smokers. These bandits were not dummies ... just extremely greedy.

Phillip Morris Companies Inc., has many subsidiaries, wholly own and controlled by them, Phillip Morris Capital Corp., Philip Morris International, Miller Brewing Company, Kraft Foods,Inc. and Philip Morris USA, which markets and sell's cigarettes in the United States, and therefore, the only party responsible for making the MSA payments ... other large MSA companies have similar structures.

PM Companies Inc., can spread the cost, among all it's subsidiaries, companies so structured, commonly work in that manner, moving profits and spreading expenses, back and forth between subsidiaries, depending on business conditions and needs. Though a particular subsidiary, may be the only, with legal liabilities under the MSA ... all of Phillip Morris's companies take the hit.

When a smoker in France, buy's a Phillip Morris product, such as cigarettes ... he is contributing to MSA, and you also, if you buy Kraft Cheese. If you do some research, after the MSA, PM Companies Inc. increased prices on many subsidiaries products.

The tobacco companies raised the prices of their cigarettes by 45 cents in the U.S. specifically to pay for the MSA. This was the pass-through. They didn't raise the prices for those sold in other countries. It may be that some of the expenses of the MSA are being borne by the companies' consumers as a whole, but the American smokers are paying directly for the money going to the states with the added 45 cents for every pack of cigarettes they smoke, even those they purchase at the Indian reservations.