On February 4th, President Obama signed SCHIP legislation which provides for an expansion of health care, the cost of which is to be paid for in part by increased federal tobacco taxes. In short, all tobacco products will increase in price on April 1, 2009. These are the anticipated increases.
Cigarettes .65 cents per pack
Moist snuff .15 cents per can
Chewing tobacco .10 cents per pouch
Pipe tobacco $3.00 per pound
Roll your own cigarette tobacco $25.00 per pound or $1.50 per 3/4 oz pouch
Small cigars .05 to .10 cents each
Large cigars $1.00 each
Locally, State Rep. Tyrone Yates is proposing a tax hike of 55% on cigars, chewing tobacco, and other tobacco products. This would be in addition to the federal tax increase that will take effect April 1, 2009. Ohio Gov. Ted Strickland apposes this “sin” tax saying he doesn’t believe tax increases would be productive during a recession.
I agree with Gov. Strickland, raising taxes in this climate is not productive.
