The ScHIP Sets Sail…

6th February, 2009: Posted by glpease in Pipe & Tobacco News

…And we’re stuck aboard, like deck chairs on the Titanic.

This following mercilessly swiped table (source: ryorevolution.com*) indicates the new Federal excise tax on tobacco products, along with the current taxes we all know and despise, and the proposed taxes vetoed twice by ex-prez G.W. The new rates go into effect 1st April, 2009. Fortunately, for most of us, pipe tobacco isn’t hit as badly as it could have been, resulting in a price increase of only about 20ยข per ounce. Nor have cigars, taken a serious beating, but it may herald the death of many RYO tobaccos currently on the market. Is it any wonder that Big Tobacco supported this? Nothing like taxing your competition into oblivion in the spirit of free trade.

Tobacco Product Current Tax SCHIP 2009
(New Tax)
Tax Increase
(April 2009)
% Increase
(April 2009)
Cigarettes $0.39/pack $1.01/pack $0.62/pack 158%
RYO Tobacco 1 $1.10/lb $24.78/lb $23.68/lb 2,159%
Pipe Tobacco $1.10/lb $2.83/lb $1.73/lb 158%
Large Cigars $0.05 ea (Max) $0.40 ea (Max) $0.35 ea (Max) 722%
Small Cigars $0.04/pack $1.01/pack $0.97 2,653%
Chewing Tobacco $0.195/lb $0.50/lb $0.31/lb 158%
Snuff $0.59/lb $1.51/lb %0.93/lb 158%

What truly amazes me about this is that the fools who author this sort of nonsense don’t seem to be able to comprehend that building social programs based on revenues derived from taxing something they’re hoping to extinguish is the worst sort of fiscal folly imaginable. Next thing we know, they’ll be funding environmental programs by charging people to learn how to BBQ spotted owls using charcoal made from old-growth redwoods, hauled out of the forests in Hummers.

Pencil Pushing Bureaucrats. Can’t live with ‘em; can’t run over ‘em with a steamroller…

* In my zeal to rapidly disseminate information, I did not research the source of the published table, and therefore, failed to give credit to its original compiler, Dan of ryorevolution.com. My apologies for any perceived slight. -glp

2 Responses

  1. SCHIP and tobacco taxes « David Kirkpatrick Says:

    […] SCHIP and tobacco taxes Filed under: Politics, Science — Tags: bad science, G.L. Pease, public policy, SCHIP, taxation, tobacco — davidkirkpatrick @ 11:44 am Master blender of pipe tobacco, G.L. Pease, makes a great point on the increase in tobacco taxes and the recently passed SCHIP. One, it’s absurd on so many levels; and two, major cigarette companies were allowed to basically tax their competition (roll-your-own tobacco) out of existance. […]

  2. A Two-thousand Percent Tobacco Tax Increase | Smoking Pipe Tobacco Says:

    […] A Two-thousand Percent Tobacco Tax Increase Once I opened the door on these tobacco legislation posts I don’t think I can close it. Anyway, I was over at Greg Pease’s site and his most recent post has a handy table that show’s how tobacco consumers are going to be screwed over, by how much, for whom. […]

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