Thread: CA. Lawmakers consider $1.50-per-pack cigarette tax hike

Forty-five states have raised tobacco taxes during the last decade, but not California.
Despite California's health-conscious image and laws that ban smoking just about everywhere, including bars and beaches, the state's cigarette tax of 87 cents per pack is lower than such taxes in other states. In Rhode Island, where tobacco taxes are highest, the levy is $3.46 a pack.

It look like one of the main reasons CA. is having money problems and other states aren't is because other state have much higher tax rates to raise money for them.

It seem no one is going to get to vote on this but the CA. Assembly and the Governor. If the Assembly passes this tax increase the governor can sigh it into law, let it become law without his signature, or he can veto it. If he vetoes it they can override the veto, if they get enough Assembly members to vote for it.

Originally Posted by MW

JohnDoe2 wrote:

Since CA. has one of the lowest cigarette taxes in the country
I don't see a problem raising them to match the other states.

Two wrongs don't make a right. I definitely think $1.50 a pack is excessive (I'm a non-smoker). :wink:

"California's cigarette tax of 87 cents per pack is lower than such taxes in other states.
In Rhode Island, where tobacco taxes are highest, the levy is $3.46 a pack."

If CA. passed this $1.50 it would still be lower than several other states.

The California State Constitution requires a two-thirds majority vote by the Assembly for a tax increase and a ¾ supermajority to impose a new tax . . .

www.fiscalaccountability.org/index.php? ... =supersub1

The North Carolina tax on a pack of cigarettes is $1.35. CA. tax is only 87 cents.

Cigarette Tax Pounds North Carolina: Beverly Perdue Taxes Smoke Tobacco Land

March 18, 2009
by Lori Lane

With the economy in strains, each state is doing what it can to make up for the budget trench of America. It's your turn North Carolina, and watch out, it's not pretty as Beverly Perdue's taxes smoke tobacco land!

North Carolina has to fill in a $3.4 billion hole. Governor Beverly Perdue's two-year budget consists of increasing the cigarette tax, according to Associated Press, from .35 cents to $1.35 a pack and a 5% surcharge tax on alcohol. The NC cigarette and alcohol surcharge and tax wastes no time. What used to be $4.26 less than three months ago is now $5.99. Is the math confusing you? This is how it worked.

Take Virginia Slims Luxury Lights 120's. In the area of Raleigh three months ago they were $4.26. A raise in cigarette price bought this pack a little under $5 one month ago. Now, over a dollar tax the price is $5.99 per pack. This tax has been noted on convenient stores as being soon imposed, but this soon? That is quite a jump in price as NC awaits the next surprise.

North Carolina is known as a tobacco state since much of the production is in NC. Even some of the historical tobacco buildings are still in use. When the tobacco state starts to squeeze their own product dry, is it time for North Carolina to give up their tobacco rows? It's questionable, but ever-so expected in some form of loss.

Tobacco and alcohol will not be the only touched corners through Perdue's proposal. NC licensing fees are going up for "professionals" from $50 up to $200. Spreading the wealth may lead the professionals into being forced out of business. And what is it called when everyone makes the same amount?

For more of this Associated Press report on Perdue's proposal for North Carolina visit SalisburyPost.com.

As for North Carolina, we have a problem, stay with me on this one. If we take out the main money maker, what do we have left that compares? NC is known for two things, tobacco and construction, and we are not selling out our guys!

http://www.associatedcontent.com/articl ... olina.html

The federal cigarette excise tax will increase to $1.01 on April 1, 2009

as part of the State Children's Health Insurance Plan (SCHIP) bill that was signed ...
www.ncsl.org/programs/health/cigarette.htm

JOHNDOE: You say that Cali should have this tax to match the tax in other states. Are you kidding me? Why should other states have this tax at all? Do you think that Cali citizens should be ripped off at the same high rate as other states?

It should be illegal to put extra tax on certain items. It just gives them more money to waste. Instead of having to work within a certain budget it enables them to continue wasting money. It also gives them money to enable them to continue letting in millions of illegals. No item should have more than the regular sales tax. It is bs that smokers and beer drinkers cost the states more.

For one thing, health issues related to these activities have been hyped for the purpose of robbing the taxpayer for even more tax money. They are like drug addicts who cant get enough. Even if they put a $50 per cigarette tax on each and every single cigarette smoked...it would not be enough. It would never be enough. Then they would need $100 dollars on each and every single cigarette smoked. They are out of control.

And taxing what they call junk food is in the same category. It is robbery. Fast food is not harmful unless you live on it. The whole thing is being hyped up to collect more and more tax. If we dont stop them, we will end up having to pay $50 for a bag of potato chips, because according to them it is so highly dangerous.

Highly dangerous? But legal. Why is it that beer, cigarettes, fast food, sugared food are legal if it is so highly dangerous and is making people drop dead in the street. All they do is site some numbers, but no one ever asks where those numbers actually come from. Anyone can site statistics and manipulate statistics.

Here are some statistics for ya. No one has ever died from the use of beer, cigarettes, fast food, or sugared food. Prove they died from that. Prove they would not have died anyway. They cant prove that. So their statistics are very flawed. They continually hit on these products so THEY CANT EXTRACT MORE AND MORE MONEY. However, does every single person who uses the above products get sick and die? No they dont. It is not the use of the product but the amount of the use. If you drink one beer a month will that make you sick? No. What about one per week? No. What about one per hour? UM...maybe. The same is true with cigarettes, fast food....an on. It is the amount not the product. So why is the tax so high? Because they want to line their pockets thats why.

JohnDoe2 wrote:

The North Carolina tax on a pack of cigarettes is $1.35. CA. tax is only 87 cents.

Your point won't work on me because I don't agree with either state. IMO, all consumer goods should be taxed at the same rate. Sin taxes are designed to be regressive. They tax behaviors that are more likely to be engaged in by the poor, the deprived and the uneducated. Furthermore, isolating individual products for higher taxes is governments way of manipulating taxpayers without them even realizing it.


Here's an interesting read for you:

[quote]‘Sin’ taxes bad for everybody
Columnists

(Rate this!)URL Link Monday, Apr. 27, 2009 at 8:23 am
By: JOHN NOTHDURFT

What do alcohol, playing cards, soft drinks, blueberries, tobacco, bottled water, and nudity all have in common? States tax each of these things, to bring in more revenue and alter people’s behavior. Proposals currently being considered include a candy tax in Massachusetts, a prostitution tax in Nevada, a marijuana tax in California, and a plastic bag tax in Seattle.
Targeted taxes are nothing new to American politics, but the list of products and services suggested for new, additional taxation in the states has seemed endless this year. These taxes are a backdoor way for big-government politicians and narrowly focused special-interest groups to finance a larger and more intrusive government.

Thus the Illinois State Dental Society is proposing a 5 percent soda tax to pay for dental programs for the poor. Even though soft drink companies and their consumers are not to blame for low-income families lacking dental care, they will be punished.

So-called “sinâ€

Taxes range from 3 cents a pack in Virginia,
7 cents a pack in South Carolina,
87 cents in California
$1.46 in North Carolina
$2.75 a pack in New York,
to $3.46 a pack in Rhoade Island.

You can see all of the states at:

www.tobaccofreekids.org/research/factsh ... f/0097.pdf

I agree with MW on this one. Just because California has one of the lower cigarette taxes in the country doesn't mean they should raise the tax. Taxation without representation. It can't be that low. I used to be a smoker. When I was in Cali back in 1995, I paid $4 for a pack of smokes that I paid $2 for in Texas, so the tax is obviously fair where it is.

Originally Posted by jshhmr

I agree with MW on this one. Just because California has one of the lower cigarette taxes in the country doesn't mean they should raise the tax. Taxation without representation. It can't be that low. I used to be a smoker. When I was in Cali back in 1995, I paid $4 for a pack of smokes that I paid $2 for in Texas, so the tax is obviously fair where it is.

What is fair ? to whom ? At 87 cents 30 States have higher tax on cigarettes than CA.

Why only comments about CA. at $2.37 and nothing about N.Y. at $2.75 and R.I. at $3.46 ?


What is fair? 3 cents, 87 cents, $2.37 - (87 cents plus $1.50),$2.75, $3.46 ?

Taxes range from:
3 cents a pack in Virginia,
7 cents a pack in South Carolina,
87 cents in California
$1.46 in North Carolina
$2.75 a pack in New York,
to $3.46 a pack in Rhoade Island.

www.tobaccofreekids.org/research/factsh ... f/0097.pdf