NYC Mayor Bloomberg has proposed legislation that would raise the minimum price of a pack of cigarettes in New York to $10.50 per pack (over 50c per cigarette). Not only would this legislation increase the cost of tobacco, but it would prevent the use of coupons on cigarettes, like "two for one" deals ie. buying 2 packs for the price of 1 that is commonly seen in many convenience stores.
This legislation is different than most in that it requires a minimum price of cigarettes. Many states simply have a high tax rate which jacks up their prices, but in this case it would set a specific minimum cost per pack of cigarettes in NYC. It is to be seen whether or not this legislation will pass.
Many smokers have been resorting to relighting their used cigarettes to save money ever since the cost of cigarettes became so high. What they mean is that people are taking cigarette butts that they already smoked and relighting the butts and smoking them. Quite a desperate measure, but also a sign of how steep tobacco prices affects your average smoker.
As many as half of smokers in the study that was done had re-lit cigarettes. People who were more likely to re-light cigarettes were those with the last amount of money or income.
Posted by MD at 8:24 AM
Despite increasing cigarette taxes in Illinois by $1 last June, the tobacco tax in Cook County (Chicago) has increased again by another one dollar. The main reason is to get people to stop smoking and bring in tax revenue.
Posted by MD at 6:33 PM
Phillip Morris was down over 6 percent in the 3rd quarter of 2012 despite raising their prices
Reynolds American was up over 7 percent in the third quarter of 2012.
A history of how small tobacco firms took over the big dogs in the early to mid 1900s
Alternatives to smoking thrive
Many cigarette companies are learning that alternatives like E-cigs and smokeless forms of tobacco are gaining in value
Posted by MD at 1:28 PM
In response to tobacco taxes, many stores have been popping up over the last couple of years where people can make their own cigarettes with special machines. Obama's new federal highway bill has a part which will shut down these new stores. This isn't good news for people who use these shops, but you can still buy your own manual cig maker. There seems to be little stopping the government from going after smokers at this point!
Posted by MD at 3:59 PM
The proposed tax hike on cigarettes in California failed. This is good news for tobacco users in California. Taxes are generally high in California, but their tobacco prices are only the 32nd highest in the country. If this law passed, California would have had the 16th highest cigarette taxes in the country. The bill narrowly failed by a 51-49 margin.
Posted by MD at 8:32 AM
There's a lot of things going on in the world today, economy wise. Some European countries like Greece are having austerity programs. Austerity means cutting programs and raising taxes to get more money for a government as a result of a bad economy. This has only sort of started in America. One of the main reasons for demonizing tobacco smoking is so that the government can tax it so much. They've been exorbitantly taxing cigarette smokers in America for the last couple of decades, but with the economy being bad, there is good reason to believe that the already sky-high taxes on cigarettes may go higher. Watch out for austerity measures, and higher tobacco taxes.
Posted by MD at 3:19 AM
In California, Proposition 29 may raise tobacco taxes even more. The vote is in a couple of weeks. Tobacco companies have been trying to get voters to be more aware of the new proposition. A few months ago, there was far less opposition to the bill than there is right now. As of May 25, there are still more people that support the new tax hike on cigarettes in California, but the tobacco companies have been making ground. This new tax increase is going to be a toss up.
Posted by MD at 3:11 AM