Tobacco Users Smacked With New Tax Hit

March 29, 2009

(ChattahBox) — Smokers and other tobacco users will get hit with the single largest federal tobacco tax increase ever on Wednesday. It calls for a 62-cents-a-pack increase, to $1.01, in federal excise taxes on cigarettes for the nation’s estimated 45 million cigarette smokers as well as increases in taxes on little cigars, cigars, and pipe and chewing tobacco. The tax on chewing tobacco will go up from 19.5 cents per pound to 50 cents.

The estimated 20% of Americans who smoke already have seen the taxes effect, as earlier this month the manufacturer of Marlboro, Parliament and Virginia Slims, Philip Morris USA, increased prices by 71 cents a pack, 9 cents more than the federal tax increase.

Ironically tobacco taxes are being hiked to finance a major expansion of health insurance for an additional 4 million low-income children, that President Obama signed soon after taking office. The total expected to be raised from the tobacco taxes over the 4 1/2 year-long health insurance expansion is nearly $33 billion. Medical groups see a tax increase, particularly right in the middle of a recession, as a great incentive to help persuade smokers to quit.


3 Responses to “Tobacco Users Smacked With New Tax Hit”

  1. nerdovision on March 30th, 2009 10:15 am

    As smokers we are left with only 3 choices that I can think of.

    -Pay the tax and move on

    -Quit smoking

    -or get these

    I am sure that the Government wants us to choose the first option as they are more worried about our money than our health!

  2. PHILLIP CROSS on March 30th, 2009 9:24 pm

    if i had a say so in any of this i would say that there is more people that drink alcohol so it would be more profitable to put a higher tax on alcohol.its not right to put more taxs on smokers and leave out a top 3 killer alcohol!.THANK YOU FOR YOUR TIME

  3. zack on March 31st, 2009 1:28 am

    This is the best news I ever heard of! I am glad they are doing this to smokers 😀

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of - Comments are the opinions of the individuals leaving them, and not of or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.