Tuesday, March 31, 2009

Tobacco Tax

As if the CONFICKER Worm wasn't enough to plague us, we also have Politicians.

Worms are everywhere we look.

Politicians, in their infinite wisdom, have decided to increase the Federal tax of that Demon Weed ... Tobacco.


As a confirmed Marlboro Man (" I miss my lung, Bob") I am grateful for this venue to vent my anger.

Federal taxes on a pack of cigarettes are now one dollar. Thanks to President Nero, a new law, beginning April 1 (coincidence? I don't think so!) will add about sixty-two cents ($0.62) to the cost of a pack of cigarettes.

Federal Tax Increase: The congressional SCHIP bill signed by President Obama on February 4, 2009 includes an increase in the federal tobacco tax (mostly from an increase in the federal tax by 61.66 cents per pack of cigarettes) and other changes, which the Congressional Joint Committee on Taxation (JCT) estimated would increase budget revenue by $32.5 billion over 5 years and by $65.6 billion over 10 years.
Why?

Tobacco taxes continue to be a focus of attention for states in 2009, with dual interests: raising state revenue and achieving health public policy goals.

Let us dispose of the "achieving health public policy goals" immediately. If Nero's goals are met by his committed timetable, health insurance will become a national issue within the year. Before the end of his first (and hopefully final) term of office, it will be both national policy and federal law. As a committed Socialist (Nero is, after all, nationalizing the Banking industries and the Automobile industry, even as you read these words), he will follow the National Health example of Great Britain.

In other words, the National Health Service will not provide medical help for overweight (fat) people, nor will it provide life-extending services for old people. Particularly, it will not provide medical health for people who smoke. It's simply "not in the budget". Great Britain (see: Canada) has already learned that a National Health program cannot server it's (involuntary) subscribers and consequently must cut expenses on "fiscally unsupportable patients". Even if these patients could pay for the treatment (again, using the experiences of Great Britain and Canada as models) they will not be allowed access to the facilities because there is no incentive for hospitals and medical care facilities to invest in the expensive machinery, or the not-so-expensive (under Socialism) surgical expertise needed to service "extreme" patient needs.


So when someone tells you that the increase in tobacco taxes is part of the "achieving health public policy goals" effort, just call them either a liar or a fool, and move on.

On the other hand, raising revenue is definitely part of the goals of a politician. Especially such an out-of-control bunch of politicians which have become incumbent under the leadership of Nero.

After all, we have just doubled the National Debt, and have gone from being the most prosperous nation to the most-indebted nation within the short span of Nero's First 100 Days.

And if He has His way, we will see our National Debt tripled before the year is out.

Right now, a carton of cigarettes costs nearly $10 more than it did six weeks ago; that cost will increase another $6.20 tomorrow, which raises the cost from $50 to $57 (approximate).

Let's go back to our earlier question:

WHY?

Answer: Because They Can.

Actually, the money is going to fund the S-CHIP program.

That's right. For "Children who are not otherwise insured" (State Children's Health Insurance Program). "Children", in this case, are defined as 'individuals up to the age of 25 years who are still living at home'.



Here's another question:

Who is this going to hurt the most?

Answer: those who can least afford it.
Not only are the payers of cigarette taxes poorer as a group than the payers of these other taxes, but there are fewer of them. The burden on the lowest-earning 20 percent of households from a cigarette tax is 37 times heavier than if the government raised the money with the federal income tax.
(The above article debunks five specific "myths" about the benefit of increasing taxes on tobacco:
  1. Higher cigarette taxes deter youth from smoking.
  2. Smoking is harmful and cigarette taxes reduce those harms.
  3. Smokers act irrationally in believing smoking has benefits, and the tax corrects for that mistake.
  4. Raising cigarette taxes is proper tax policy because smokers impose costs on government and society.
  5. We need more revenue.
Well, it must be admitted that with the new "Tax and Spend" policies of the current administration, the money has to come from SOMEWHERE. One can't be criticized too strongly for wondering from where this money is to be found. Still, it's difficult to believe that increasing the tax on tobacco will bring in nine trillion dollars over the next ten years. Are smokers destined to shoulder the burden of the entire national debt?

Wait a minute! In 1994, the Clintons proposed that a fifty cent tax per pack of cigarettes would pay for HillaryCare. I guess, if you're a Liberal, this sounds reasonable.

But then, the Clintons were not Nero.

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