Proposal Raises Cigar Tax From 5 cents to 10 dollars


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A tax proposal being considered by Congress to pay for children's health care proposed substantial increases in tobacco taxes.

The St Petersburg Times has the story about how the tax proposal would raise the tax on cigarettes from 39 cents to a dollar a pack and the cigar tax from 5 cents to 10 dollars, a 20,000 per cent increase.

What I find most interesting about this is that I live in a neighborhood that is on the poorer side and the biggest business that the corner store does in cigarettes and these little flavored cigars. If the little cigars go from $1 to $11 dollars, I think we'd see some seriously pissed off people.

The so-called "sin taxes" can only go so far. A ten dollar tax on a cigar will make them only affordable to those with significant disposable income.


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