Sunday, March 23, 2014

Tax Increase on Cigars in Ohio Not Right

It came to my attention the other day while listening to The General Cigar Dave, that here in Ohio, Governor Kasich has proposed, as part of his budget bill, an increase to the tobacco tax.  The plan for this increase, among other tax increases, is part of an effort to help fund a state income tax cut.  This increase in tax on tobacco is not only focused on cigarettes, but other tobacco products, including cigars, pipe tobacco, and even e-cigarettes.  (E-cigarettes too?  Really?)

Tobacco is the easiest tax to increase, with only 23% of Ohioans as smokers, leaving a hefty 77% of non-smokers who would likely favor this tax increase since it doesn't affect them at all.  But lets take a deeper look at the real reasons for these tax increases.

This is truly an effort for the Ohio government, with pressure from anti-smoking organizations, to try to dictate how people should live their lives and live healthier.  Hey, no one disagrees that smoke free is healthier than not.  No one says that smoking is good for you.  However, everything in moderation is just fine and is the given right and freedoms we have here in the USA.  And this is why cigars should not be included in with cigarettes, that contain addictive qualities, while cigars are enjoyed in moderation and are not addictive, nor do most people have to chain smoke them one after another like cigarettes, but I digress.

"Tobacco tax increases are a highly effective means of reducing smoking and other tobacco use, but the increase must be large enough to have the desired public health impact."  This was a statement made by the American Lung Association in a joint statement with the American Cancer Society.

In another interesting comment, and this is the one that really shocked me, made by Ohio Tax Commissioner Joe Testa, Joe Testa said, "These tobacco taxes will absolutely help people decide to quite or not start a tobacco habit."  Really?  What kind of country are we living in where the government starts calling the shots, or passes ridiculous bills to force people to live the life THEY want us to live.

Government dictating how we live.  How we should live.  Deciding whats best for us.  Hmm.  Sounds a bit like Communism, wouldn't you say?

The exorbitant increase in tobacco tax would be an increase from 17% to 49% on wholesale prices.  While I am not a cigarette smoker, I certainly enjoy a fine hand rolled premium cigar from time to time.  And this proposed tax increase in Ohio it would increase the retail price of an $8 cigar to nearly $12 per stick.  That is just simply unacceptable.

Now some people might say, "Well I don't smoke at all," said 77% of Ohioans.  "This is good if it helps reduce the number of people that smoke, because smoking kills."  Okay, well whats to stop the Government to come after the next thing that is not "good" for you?  Why not increase tax on sugar, candy, soda pop, butter, crisco oil, red meat... I guarantee that there is something that everyone of us enjoys that would be deemed unhealthy in some fashion.  Remember Mayor "Bloom"berg of New York City that wanted to pan 40oz sodas?

I am, or at least I used to be, a fan of Governor Kasich.  I liked his no-nonsense attitude.  I liked his support for the disabled, the veterans, the elderly, the mental health, and developmental disabilities.  But this stance on increase tax on tobacco to help the "health of Ohioans" is too much government control and begins a slippery slope.

So as I conclude this, while smoking a fine cigar and sipping on a wonderful scotch, consider what this tax really means and the direction we are heading.  Speak out and be heard.  Don't let our freedoms continue to be diminished.

1 comment:

  1. First of all, there are some facts to be checked about the supposed benevolent quality of cigars:
    http://www.cancer.gov/cancertopics/factsheet/Tobacco/cigars

    This isn't some prohibition banning your choice of using a harmful substance, merely a tax making it more expensive, so I fail to understand how it is limiting freedoms. Plus, even if it was an outright ban on all tobacco products, why couldn't an argument be made that it has no medical use, is only harmful, and should fall under the other Class 1 banned drugs. The tax isn't just for keeping people from starting and encouraging them to stop, it is also to help society recoup some of the costs that smokers incur on the medical system. Now supposedly, the extra costs on society are actually covered by the current taxes and a smokers shortened lifespan, so increasing them more would only increase revenues.

    You mention the soda tax and that reminded me of an article I read recently in the LA Times about placing a tax on all sugar to decrease obesity and help offset the costs. It essentially summed up that if we thought the recoil from the soda companies was big, imagine what the entire food industry would do to prevent a sugar, fat, etc... tax.

    Here is that article: http://www.latimes.com/business/hiltzik/la-fi-mh-sugary-drinks-20140218,0,5251026.story#axzz2wvTE1juw

    However, to me it all seems a little ridiculous. These taxes are marketed as increasing the health of the country.... since when did we need financial stimulation to live a healthy life? It all reeks of a money grab to fund the government. If more American citizens could understand a nutrition label and how to live a healthy life, maybe we wouldn't be having any of these discussions.

    Good post. Assassins for the Cup!
    - Alex

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