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Old January 25th, 2010, 08:41 AM
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Hookah Pro
Join Date: Jun 2009
Location: OC
Posts: 541
Default Re: Proposed Bill to Raise Federal Tax on Pipe Tobacco

Originally Posted by DaSebsch View Post
PS: It's not even clear that this tobacco tax would also be applicable to hookah tobacco since you can make 150g of hookah tobacco from about 15-20 grams of dry/pipe tobacco.

The weight of the tobacco in the hookah tobacco is only a tiny percentage. The molasses makes up most of the weight that you see printed on the tobacco boxes.
Hookah tobacco is taxed as pipe tobacco and Federal tobacco taxes are based on product weight.

Originally Posted by gnuworldorder View Post
there is 0 reason for this at all. how do they leave cigs out of it? it would easily generate 100x more money
It all started because of cigarettes. This was proposed to keep makers from rebranding their tobacco to get out of the higher tax rates.

If this does end up gaining support and passes, I would expect cigars to be targeted next because of companies like Djarum who are avoiding the flavored tobacco ban by adding leaf pulp to their clove wrappers, repackaging them into packs of 12, and calling them filtered cigars.

Originally Posted by Hajo Flettner View Post
My quote you cited is out of context in that I was referring to a high price being justified if the quality was commensurate.
Ah, in hindsight I should have worded my response differently. I can remove your quote from the OP if it bothers you being there.

Originally Posted by Hajo Flettner View Post
However, the fact is that tobacco users are not well organized and are basically apathetic so I am sure that this tax increase will happen with no more resistance then any of the others that came before it.
There is some optimism to be had in the possibility that the lack of public reporting on the proposition is an indication that it is not being seriously considered but at the same time it wouldn't surprise me if it did pass without becoming a story.

Originally Posted by Hajo Flettner View Post
While I have no doubt that a big portion of the GOP will support the tax hike out of fear of the anti-tobacco lobby the motive force for this tax bill is strongly Democratic in base. I say that not just because Obama loves the idea of taxing tobacco out of existence but the same is true of all, or nearly all, Democrats in Congress and literally every pro-Democratic PAC/interest group around. The Democrats like the idea of oppressing tobacco because they think it will pay for nationalized health care and also because they like the idea of a nanny state on general principles.

Of course it won't pay for health care because when the price of something rises dramatically consumption and tax revenues decline. Also, Obama isn't really nationalized health care but merely a scheme to force people to buy insurance from companies that give money to the Democratic party combined with massive government regulation of the health care industry and lots of tax payer subsidies designed to reimburse insurance companies for having to provide insurance to people that they normally wouldn't. Naturally when you are forced to take Obamacare you'll also have to accept the taxes that come along with it.

Oh, by the way, I despise the GOP as well.
While health care was the primary selling point to the public for the last round of tax hikes in 2009, I am of the opinion that tax increases on tobacco would have occurred regardless if McCain was in office; they would just find a different excuse to justify it. I feel it is unfair to blame Democrats for tobacco tax increases when there were those that publicly opposed it last year. There is disagreement on the issue among the Democrats just as there is among the Republicans as well.
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