Tag Archives: cigarette tax

Don’t Put That in Your Pipe and Smoke it

Matt Apuzzo, of the Associated Press reported on a tax loophole that many Big Tobacco manufactures quickly jumped on to reduce their tax base.

By cleverly changing product marketing they are effectively dodging taxes that would have gone to support the cost of children’s health insurance.

It didn’t take long for many makers of tobacco products to catch on. They switched gears immediately to take advantage of the different tax rates between cigarette tobacco and loose pipe tobacco.

Roll-your-own brands of loose tobacco like Criss Cross and Farmers Gold were quickly pulled from the shelves of the tobacco shops. In their place new types of pipe tobacco bearing the same labels almost instantaneously appeared.

We all know those who roll their own cigarettes will purchase the “new varieties” of pipe tobacco to beat the rising costs of smoking cigarettes.

What is most worrisome about this move is pipe tobacco is not banned from adding flavors like tobacco companies did to cigarettes.

Now that new types of flavored pipe tobaccos are finding their way on the shelves, this could ignite a whole new movement for hooking young smokers.

The new varieties of packaged pipe tobacco are also manufactured with a finer cut, suitable for rolling in flavors such as black cherry, vanilla, and who knows what else.

Popeye and his PipeThis move did not go unnoticed; The Obama administration is looking into tightening their definitions so hopefully the funding for children’s health care remains effective. This costly loophole may be causing as much as $32 million dollars of lost tax revenue each month because pipe tobacco sales are rising as roll-your-own sales are drastically being reduced.

The tobacco company tax dodging strategy has our wheels turning at CiggyFree.com. Next, we may see tobacco companies reinventing Popeye as their spokesperson. The new product campaigns may just offer disposable pipes that go along with disposable lighters combined with packets of flavored tobacco aimed at enticing young smokers. Would it surprise us? No!

Credit: Matt Apuzzo, Associated Press & Popeye Cartoons

Raising the Smoking Age, Black Market Cigs & 4 Billion for Health Care

This week the news reported several tobacco related stories.

As the senate passes a bill to protect young Americans from the effects and dangers of smoking, smokers are red hot over the recent tax hikes and smoker’s helplines are getting busier by the day.

Also, Big Tobacco is feeling a little pain this week after paying their annual settlements.

Associated Press Reports on Bill SB 1049

The house will soon review a smoking age bill the Senate voted on and passed on April 15th to raise the smoking age from eighteen to nineteen years old.

The goal of this bill is to reduce the number of youth smokers by keeping tobacco products away from high school students.

The Senate vote was twenty-five for, and five against. In the same story it was reported that in the State of Texas alone roughly one-fourth of the high school students smoked cigarettes in 2006.

If this bill passes, the tobacco supply aimed at eighteen year old smokers would not be available legally.

Big Tobacco Yearly Annual Settlements

Also in the news, Philip Morris USA made its annual tobacco payment of four billion dollars as part of the 1998 Master Settlement Agreement which is paid to reimburse states for smoking-related health care costs.

In total, Big Tobacco agreed to make about $206 billion in annual payments over more than two decades.

However, not all states are using the funds as specified.  The American Cancer Society in New England reported that only a small percentage of funds targeted for tobacco prevention programs were allocated. This lack of responsibility is putting children and youth at risk for taking up the nasty tobacco habit.

Red Hot Over Cig Tax Creates Busy Helplines

The tobacco tax in Arizona was only thirty-nine cents a pack a few weeks ago.

With the new government tax add on of a little over a dollar, the Arizona Tax Revenue department is worried about their share of the taxes being undercut due to smokers seeking alternative ways to buy their smokes.

With cigarettes at just under seven dollars a carton in Mexico, black market tobacco products may soon be infiltrating the area along with the resale of cigs purchased at the Indian reservations.

At the same time, calls to the Arizona stop smoking help line are up, as reported by the Tuscon Citizen news.

The Arizona Smoker’s Helpline is web based and offers a test for smokers. It is designed to provide a score on each of six factors that describe individual smoking behaviors. They understand that people phase in and out of wanting to quit and they know how to support smokers in taking the next step to really quit for good.

First learn why you smoke. Is it …

  1. Stimulation – If you smoke for stimulation, try a brisk walk, dance around the room, change your state in another way.
  2. Handling – If you like the way a cigarette feels then try other things to keep your hands busy. Take up a hobby
  3. Increasing Sensation of Pleasure –  Create some new activities in your life that are stimulating and enjoyable without being destructive.
  4. Reducing Negative Feelings – If smoking is a crutch for coping with emotions there are many great programs designed to bring emotional highs and lows into balance.
  5. Cravings or Psychological Addiction – Try products like NicoDrops, nicotine gum or patches to remove your focus on cigarettes while incorporating hobbies and other activities to divert your attention.
  6. The Habit – Begin noticing every cigarette you smoke and ask yourself if you really want it.

Get Free of CigarettesThese six factors are more extensively explained at the Arizona Smoker’s Helpline and offer a way for becoming more conscious about your reasons for smoking. If you are just thinking about quitting their free web-based smoker’s helpline is really worth checking out.

Once you have a better understanding of why you light up, you may be more inclined to know what steps to take to stop your nasty tobacco habit.