SCHIP and Pipe Tobacco?

[Fia]

Now that it has been passed and we know that we are looking at about a 1.00 increase per cigar, what are we looking at for the price increase of pipe tobacco? Tins? Bulk oz? Pound? Etc.

 

[hermit11]

It's $.40 for large cigars and for pipe tobacco, $1.71/pound.

 

[Mr_Wolf]

Almost $2 a pound? Damn. I'm loading up before April.

 

[LilBastage]

I thought that pipe tobacco went to $2.83/pound from $1.10/pound.

An increase of $1.72/pound.

 

[Fia]

So if those are the increases, then we can expect to pay about double the increases (turnkey) by the time it reaches the consumer. Right?

 

[georgec]

I copied this from another site. I don't see where it will be that big of a deal deal for pipe smokes. I also think that this is just a rounded off figure not sure if it is correct, but it came from a supplier.


* Pipe Tobacco Tax Increase: From $1.10 per pound to $2.83 per pound.
* Large Cigar Tax Increase: From a cap of $.05 per cigar to a cap of $.40 per cigar.
* Small Cigar Tax Increase: From $.04 per pack to $1.07 per pack.
* Cigarette Tax Increase: From $.39 per pack to $1.01 per pack. This is in addition to your respective state taxes.
* Roll-Your-Own Tobacco Tax Increase: From $1.10 per pound to $24.78 per pound (not a typo).
* Chewing Tobacco Tax Increase: From $.20 per pound to $.50 per pound.
* Snuff Tobacco Tax Increase: From $.59 per pound to $1.51 per pound.

 

[LilBastage]

So if those are the increases, then we can expect to pay about double the increases (turnkey) by the time it reaches the consumer. Right?

As far as I can tell, this is a "wait and see" kind of thing. The two retailers I've actually spoken to don't even know at this point.

I wouldn't be surprised if what you are saying is true, though. It's really not that much money when you think about it. I take offense to the whole plan, but that's neither here nor there at this point.

 

[Fia]

So if those are the increases, then we can expect to pay about double the increases (turnkey) by the time it reaches the consumer. Right?

As far as I can tell, this is a "wait and see" kind of thing. The two retailers I've actually spoken to don't even know at this point.

I wouldn't be surprised if what you are saying is true, though. It's really not that much money when you think about it. I take offense to the whole plan, but that's neither here nor there at this point.

This will likely push more people into pipes as cigars become more expensive in relation to the increases of pipe tobacco. Ill use this as a good excuse to the wife to start stockpiling! :blush:

 

[Dios de Fuego]

It's really not that much money when you think about it. I take offense to the whole plan, but that's neither here nor there at this point.

Alan,

I couldn't have said it any better.

 

[Mr Peat]

So if those are the increases, then we can expect to pay about double the increases (turnkey) by the time it reaches the consumer. Right?

As far as I can tell, this is a "wait and see" kind of thing. The two retailers I've actually spoken to don't even know at this point.

I wouldn't be surprised if what you are saying is true, though. It's really not that much money when you think about it. I take offense to the whole plan, but that's neither here nor there at this point.

I will disagree. Its a huge ass amount of money when you start running the numbers. I enjoy my pipes as the tobacco is a lot cheaper than most of the cigars I smoke. I'm on that nice little fixed income that the Government and the Veteran's Administration allows me to get each month. Sure, if you can't afford it, then you shouldn't be doing it in the first place.

Its not that I can't afford it, but I don't have the luxury in giving away cash either. Lets put this in perspective. Say you smoked 8 cigars a week and there is 52 weeks in a year. At $0.40 extra a cigar, you are looking at 416 cigars in a year with an extra $166.40 out of your pocket. And that is the minimum increase as the extra $0.40 will be added and then the rest of the taxes applied. So its more than just $0.40 extra a cigar.

Now..you collect cigars. Lets say you buy 3 boxes a month. One month you score 3 full boxes of Opus X. They are the following:

Perfecxion No.5.........................4.875 x 40...................$ 8.00 / $336.00 (42)
xXx ("Power Ranger")................4.625 x 49...................$ 9.25 / $388.50 (42)
Double Robusto.........................5.75 x 52....................$12.75 / $602.70 (42) **

The other 11 months, you get 3 boxes per month and each is a 25 count stick box. So the 11 months is a total of 825 cigars and thus a minimum increase of $330 while the 3 boxes of Opus brings in a small increase of just $50.40 and this means a min increase of over a period of a year...$383.49 . Now this doesn't account for city, state, and federal taxes hit at the register.

Now lets take said numbers and increase it. Lets way there is 1 million people that smoke cigars and collect. They all manage to buy the same amount of cigars. With the numbers above, 1 million x $383.49 = $383,400,000 just in taxes off cigars in 1 year.

Yeah, you are right. Its not much at all. If you bought that many over a course of a year, you could pick up a nice box of cigars and then some. Now if you are me, you are talking about paying an increase of $1000 just for this year. Which will make ordering from other places worth the risk. This of course doesn't account for when they see this bill flop and doesn't support the SCHIP, then they will be forced to raise the taxes even more. Too the point you will either quit, grow your own tobacco, take the shaft and still buy, or finally, order over seas. Which will then lead to the intervention of the government monitoring your Credit card purchases and that will finally end up at where the government monitors all mail. Whether it be Fed Ex, UPS, or whoever else delivers. They will get the money!!!

And when all that fails, you lucky home owners will help foot the bill. :angry:

 

[Fatken]

I agree with Mr. Peat, it is a great amount of money, though it will not cost me $1000 per year.

Also if you take into consideration that many retailers consider their total cost into the resale price the tax doubles. So if the retailer's cost was $100 for a box of 20 cigars and his markup is 100% he would sell it for $200, now his cost is $108 and after his 100% markup the price would be $216, so doubling the tax to the consumer.

I have no idea what most retailers use as a keystone/markup, but it is probably not 100%, but if they consider the tax as part of the cost and mark it up as such, it will be more than $.40 per stick.

Ken

 

[LilBastage]

I was talking about the tax on pipe tobacco. The question was asked with a focus on pipe tobacco. The taxes on cigars are irrelevant to the discussion at hand.

We all know that the plan is foolish and unsustainable, but that is moot at this point. It's the law and it's not likely to change anytime in the next decade (in a downward direction, anyway).

 

[bigwhiteash]

A pound of tobacco will last me quite a long time, I don't think a measely $2.83 is going to deter me one bit... I'm not even going to attemp the math required to figure the tax per bowl!
I may grumble at the mere fact of WHY I'm paying that little bit extra, though.

Anyone who purchases 3 boxes of Opus per month is in a class that really shouldn't be hurt by an extra $10.00/box!

 

[vortex]

I was talking about the tax on pipe tobacco. The question was asked with a focus on pipe tobacco. The taxes on cigars are irrelevant to the discussion at hand.

We all know that the plan is foolish and unsustainable, but that is moot at this point. It's the law and it's not likely to change anytime in the next decade (in a downward direction, anyway).

Did you read the part in the bill about the increases to be phased in between now and 2015? Every 2 years it goes up by the same increment!!! So multiply by 4 to get the increase by 2015. Nasty and regressive tax but thank God pipe tobacco is not targeted as much.

 

[Gunpowder]

I will use cigars only as an example here. Tax is .40 but the Indiana tax is figured after the fed tax is added :angry:

they figure the actual increase will be somewhere between .70 and .80.

 

[LilBastage]

I was talking about the tax on pipe tobacco. The question was asked with a focus on pipe tobacco. The taxes on cigars are irrelevant to the discussion at hand.

We all know that the plan is foolish and unsustainable, but that is moot at this point. It's the law and it's not likely to change anytime in the next decade (in a downward direction, anyway).

Did you read the part in the bill about the increases to be phased in between now and 2015? Every 2 years it goes up by the same increment!!! So multiply by 4 to get the increase by 2015. Nasty and regressive tax but thank God pipe tobacco is not targeted as much.

I missed that. I didn't even bother to read most of the bill this time. It's passage was inevitable.

I guess that's how they plan on accounting for the decrease in smokers.