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Thursday, August 09, 2007

Cigar Tax Update

by Gary Manelski,
Your Guide to
Cigars.
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Both the U.S. House and Senate have passed their own versions of bills to continue, and provide additional funding for the State Children's Health Insurance Program, by increasing the federal excise tax on tobacco products - including cigars. Congress is now on vacation for the month of August, but they will attempt to reconcile their differences before the end of September, when the current program is scheduled to expire. A joint bill will then be sent to the President, who must approve the legislation before it becomes the law of the land. However, President Bush has threatened to veto this legislation, so both the House and Senate will need enough votes to override the veto. Therefore, at this point, anything is still possible.

Here are the latest proposed increases in the federal excise tax on cigars:

Current Tax: $.05 per cigar
House Version: 33% tax rate with a maximum tax of $1 per cigar
Senate Version: 53% tax rate with a maximum tax of $3 per cigar

Under the House version, the new tax would be $1 on cigars costing $3 or more, and 33% on cigars costing less than $3. Under the Senate version, the new tax would be $3 on cigars costing $5.65 or more, and 53% on cigars costing less than $5.65. Although the House version is less damaging to cigar smokers, a $1 tax still represents an increase of 2,000%, compared to a nickel. According to the current results of our ongoing opinion poll, 48% of cigar smokers would quit smoking if the tax was raised to $0.25 or more per cigar. If the tax was raised to $.050 or more per cigar, 80% of cigar smokers would stop smoking cigars. This would virtually put an end to the cigar industry as we now know it.

Unless you want to pay $25 to $75 more for your next box of cigars, the time to act is now!

Click Here For No New Cigar Taxes



ALSO HERE IS A YOUTUBE VIDEO ON THE CIGAR TAX FROM ROCKY PATEL OF PATEL PREMIUM CIGARS

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