October 2012 - CigarettesReviews.com | CigarettesReviews.com

Monthly Archives: October 2012

Abbott town proposes making park tobacco-free

Abbott city officials are considering making the borough’s recreation park and sports fields on High Street tobacco-free facilities.

The issue was brought to a recent Borough Council meeting by Abbott town Mayor Perry Shearer who reported on the statewide “Young Lungs at Play” initiative being supported by the Pennsylvania State Association of Boroughs.

Shearer said that he and his wife, Debbie, who is president of the City Council, learned about the concept of the fall conference of the association.

“This is really a good idea for our park,” Mayor Shearer said. “In the district officials, we have to set a good example. Children learn from what they see and when they see adults smoking or using tobacco, they see that behavior as acceptable.”

“Young Lungs at Play” is directed not only to clean the air in parks and playgrounds, but also reduce the toxic waste. The initiative says cigarette butts are the most littered item in the world, and that they are hazardous to the environment and costly to clean up.

Shearer said small children and animals are at risk of swallowing, choking or burning themselves discarded butts and risk of poisoning with drugs nicotine.

Debbie Shearer said the North Central Coalition for Tobacco Control, free and attractive features of municipalities willing to support the initiative by adopting a tobacco-free resolution of the park.

The sign shows a young child on a swing with a warning in large letters: “Young lungs at Play!

This is a Tobacco-Free Zone “.

The council directed its secretary Lorene Greer to contact the Coalition for a sample resolution, which can then be modified as necessary for use in the area.

According to literature of the coalition, posting the signage and having a resolution on the books allows borough officials to impose fines for the illegal use of tobacco. Council members said they were not immediately sure how high they can set fines.

The borough solicitor Guy Beneventano said he would bring a draft of the proposed ordinance back to a borough meeting for review by the council.

“This is what we want to do,” said Debbie Shearer. “This is something that should be done.”

Philip Morris: History of Forex headwinds and lower volumes

Philip Morris International, the last quarter performance reflects the company under the influence of growth rules, health problems and depression in consumer spending due to the recession. Sales volume of the company fell by 1.3%, however, to some extent, offset the impact of rising prices decline in sales.

Philip Morris International is one of the leading tobacco companies and the second largest retailer of cigarettes world after China National Tobacco Corporation, which is a state owned company. It has revenue of about $ 31 billion. PM has a well-diversified geographic revenue base and brand portfolio. The company’s brand portfolio includes seven of the 15 top international brands. The company sells cigarettes in more than 180 countries. He spent about 16% share in total world cigarette market outside of the U.S. in 2011.

The company reported its financial results for the third quarter of 2012. Earnings per share for the quarter were $ 1.32, up 2.2% compared to last year, and a few missing earnings estimates. Net income decreased by 6%, from $ 2.38 billion last year to $ 2.23 billion in the recent quarter.

Since the company has international exposure, a stronger dollar has had a significant impact on the company’s revenues and earnings. Excluding the impact of currency, adjusted diluted earnings per share for the quarter were $ 1.45, up 5.8%. The company reported a net income of $ 7.9 billion, down 5.3%. Net sales for the quarter missed analyst expectations of $ 8.21 billion. The decrease in net sales was mainly due to decline in volumes and currency risks. Excluding the impact of currency, net revenues increased by 3.5%, mainly due to price increases

Operating income margin for the company experienced some improvement in the fourth quarter and increased to 46.7% from 44.8% in Q3 2011. This improvement was due to the EAEC, for which reported operating profit improved by 13%.

The European Union has experienced the largest volume decline of 8.1% in Latin America and Canada, with a decrease of 4.9%. On the other side of the EAEC and Asia, the volume increased by 3% and 0.6%, respectively.


The company has shrunk to 2012 earnings guidance at the current exchange rate to $ 5.12-$ 5.18 per share, from a previous forecast of $ 5.1-$ 5.2 per share.

E-Cigarettes are banned in Canada, but smoking isn’t?

I do not pretend to know much about the electronic cigarette industry – my interest has only recently aroused while research article I wrote for the site – but I had to laugh today after reading a news site that the sale of electronic cigarettes containing nicotine is illegal in Canada, but the sale of real cigarettes is not. And apparently Canada is not the only country that’s doing this.

The advertisement, import and sale of e-cigarettes containing nicotine is banned in Canada in March of 2009. Since that time, thousands of Canadians who use them have been forced to buy them in other countries, and to send them abroad, where they can be seized by customs officials.

E-cigarettes contain nicotine cartridges are not prohibited, as well as other nicotine replacement therapies like Nicorette gum or the nicotine patch. This question set off a wave of disputes, so far, to the end.

Health Canada has not made use of e-cigarettes with nicotine illegal (yet) and gives the following reasons for this prohibition:

• Improper use can lead to nicotine poisoning

• They have not been allowed to market

• They can be addictive

• Lack of quality control

Many Canadians suspect that the ban is not because of health problems at all, but for millions of dollars in state tax revenues generated each year from the sale of tobacco products. If more people switch to e-cigarettes, less people buy the real deal, which puts more pressure on the tobacco industry. It also means that there will be less tax dollars to fill the pockets of the Canadian government.

What do you think is the real reason behind this ban? Are you as unraveled as I am about the double standard that exists here?Why would Health Canada allow the sale of cigarettes, that kill hundreds of thousands of people each year, but to ban the sale of electronic cigarettes because they believe they are unsafe? I welcome your comments, as I continue to search for answers to these questions.

Health advocates say the higher prices of tobacco

Community activists and health officials say the increase in the cost of tobacco products, as a result of the last increase in the state tax creates an effective deterrent for young people.

“This will lead to a third fewer young people from these deadly products,” Vincent De Marco, president of the Health Initiative citizen of Maryland and a leading lobbyist for the tax hike, said the cost of tobacco products. He spoke at a press conference on Wednesday at Mergenthaler Vocational Technical High School in Baltimore.

After lobbying from the coalition, the General Assembly raised the tax on small cigars from 15% to 70% and smokeless tobacco from 15% to 30%, which is much higher than what neighboring states charge.

The tax increase was designed to target small, often sweet taste and bright packaged cigars are widely available in gas stations and stores.

Before the tax increase, a package of five small cigars in Baltimore cost about $ 5.50, according to a study of the Legal Resource Center at the University Of Maryland School Of Law. Now, the package costs about $ 8, according to the coalition.

“This will lead to a third fewer young people from these deadly products,” Vincent DeMarco, president of the Health Initiative citizen of Maryland and a leading lobbyist for the tax hike, said the cost of tobacco products. He spoke at a press conference on Wednesday at Mergenthaler Vocational Technical High School in Baltimore.

After lobbying from the coalition, the General Assembly raised the tax on small cigars from 15% to 70%, and smokeless tobacco from 15% to 30%, which is much higher than what neighboring states charge.

Tax increase was designed to target small, often sweet taste and bright packaged cigars are widely available in gas stations and stores.

Before the tax increase, a package of five small cigars in Baltimore cost about $ 5.50, according to a study of the Legal Resource Center at the University Of Maryland School Of Law. Now, the package costs about $ 8, according to the coalition.

Adolescents are particularly sensitive to changes in prices, said Matthew Celentano, deputy director of the Maryland Citizens Health Initiative.

“Taxes on tobacco products produce a very predictable outcome, especially among children,” Celentano said. “Kids just get priced out of the market.”

According to the 2010 Maryland Youth Tobacco Survey, smoking among high school-aged young people has declined from 23 percent in 2000 to 14 percent in 2010, due in part, Celentano said in the past to increase taxes on cigarettes. At the same time, the cigar use among the same group increased by 11.2 per cent.

“The higher the perceived difficulties in obtaining product, the less likely you will be to use the products,” said Donald Shell, director of the Maryland Department of Health and Mental Hygiene, Center for the Prevention and Tobacco Control.

Tobacco tax – passed as part of a larger tax bill during a special legislative session in May – is expected to generate about $ 5 million in state revenue from financial 2013. DeMarco Celentano said that these revenues should be devoted to health initiatives.

Recent tobacco tax increase – $ 1 per pack tax on cigarettes – entered into force in 2008.

Delaware Michael Smigiel of Elkton, an outspoken critic of tax increases, said he is skeptical that any of this money will end up in health initiatives.

“We are dependent on the money more than we are interested in getting the children to quit smoking”, Smigiel said. “Taxation is not the answer, education is the answer. If this is really about saving children from smoking, increase the maximum age and educate them.”

Celentano said that income is not directed to a specific program, but that the organization will work with Governor Martin O’Malley’s office during the budget process, as it was after the last tobacco taxes increase.

“The revenue is important, of course, but is still going to prevent tons and tons of kids from using these products. This is the more important thing,” he said.

Ministry of Health welcomes the hike in cigarette prices

The Ministry of Health welcomed the British American Tobacco (BAT) Malaysia will increase prices on all of their cigarette packs by 20 sen.

Health Minister Datuk Seri Liow Tiong Lai reasoned that the price increase is an effective deterrent to smoking and there was a significant decrease in the number of smokers with each increase.

“This has been proven by our minimum price for RM 7. We afford to keep cigarettes as a luxury item. We do not want young people to pick up smoking,” he said at a press conference in ASLI Healthcare Forum 2012 in Sunway Medical Centre here yesterday.

Liow said the ministry is working with Customs and the Ministry of Finance to prevent illegal cigarette sale of cigarettes and ensure the implementation of the minimum price.

He said the measures; such as graphic images on cigarettes sold legally make sales of cigarette lighter because of contraband cigarette packs do not have such opportunities.

“The smokers could be charged with possessing or purchase of illegal or contraband cigarettes,” he warned.

BAT Malaysia announced price increases on Sunday, pointing to the increase in customs instructed ‘in the ex-works price of cigarettes is between 26% and 58% effective last Friday.

Liow also said that his ministry and the government’s Performance Management and Delivery Unit (Pemandu) went Laboratory Business Opportunities in Healthcare entry point project (EPP) for the elderly in the National Health Key Economic Area (NKEA).

“We have converted Senior Living business opportunities in the sector under the EPP Senior Living We help companies in three specific areas -. Pension village, home or mobile care and nursing homes,” he said.

He added that a special session of the dialogue on the new EPP will be held for investors and key players.

“We must seize this opportunity to further improve the health sector and encourage more foreign investment in Malaysia,” said Liow.

Pemandu healthcare Director Dr Chua Hong Teck said the new Senior Living EPP can generate RM1.3 billion in revenue in 2020.

“By 2020, 10% of our population will be 60 and higher. By 2050, about 20% of Malaysians will be in this bracket, “said Chua.

Tax-hike on chewing tobacco

The Campaign for Tobacco-Free Kids estimates in Maryland’s tax increase on smokeless tobacco and cheap cigars which began in July will reduce the number of young people using these products by one third, according to a University of Maryland Law.

The tax increase passed in May raises the tax on smokeless tobacco and smoking from 15% of wholesale value of up to 30%. Meanwhile, the tax rate for non-premium cigars, such as cigarillos, Swisher Sweets and Black & Milds, increased from 15% to 70%.

“Those kinds of increases that will have dramatic consequences,” said Vincent DeMarco, president of Maryland Citizens Health Initiative.

Cigarette smoking is down

In the past 15 years, smoking among teens has declined by 40% in Maryland. After a series of tax increases in the gap, currently $ 2 dollar tax per pack.

Although DeMarco said increasing the cigarette tax was successfully and deterring teens from cigarette’s buying, they turned to cheaper alternative like little cigarettes or cigarillos.

AS the tax rate for cigars has remained at 15%, was 11% increase in cigar smoking among young people. Non-premium cigars can be bought for 69 cents to $ 1.50 in the stores and gas stations.

They are sold in different flavors like chocolate, vanilla, grape and strawberry.

On average, the tax increase has increased the price without premium cigars by about 40 cents and five packages for about $ 2.00.

“When you have to pay, say, $ 8 for a pack of cigarettes, and you’re a 15-year-old, do not know to become a pack a day smoker, because you just do not have enough money,” said Peter Hamm, former tobacco users and the national director communications campaign for Tobacco-Free Kids. “But, then there are these convenience stores and other outlets where you can buy a single little flavored cigar for a dollar, and every 15- or 16-year-old has a dollar.”

“You start small with no price shock, and then you care a little less about the price, because my brain is telling me I need more of this material,” Hamm said.

Smigiel: growth in an attempt to raise incoming taxes

Del Mike Smigiel, R-Cecil, opposes the tax and said it was a disguise for the state to collect more revenue.

The other tobacco product tax revenue is expected to grow by 25% in 2013 and to increase the total of $ 24 million over five years, despite the projected decline in sales, the study of the law school said.

Smigiel said that Marylanders will leave the state to buy tobacco products, and other goods in neighboring countries, to save money. He added that the state will reach children more effectively through education rather than taxes.

“Government doesn’t belong to that choice for you,” said Smigiel. “A tax is not going to deter youth from using the product. Some peer pressure and getting ads out there to show the consequences of this, which is much more effective than force someone to escape from the state to buy tobacco for a week.”

Pro-baseball great influence on the use of smokeless tobacco

DeMarco said that raising taxes only solves part of the problem. Children are more likely to use tobacco when they see role models, such as baseball planyers using them.

The link between chewing tobacco and baseball goes back as far as the sport itself. The image of the All-Star and Hall of Famers with a big wad of tobacco in their mouths banks in their back pockets gives teens involved in sports is a dangerous idea.

Many players have seen tobacco take a toll on their health. Hall of Fame outfielder Tony Gwynn had a cancerous tumor removed from his cheeks in February, which he accuses of using smokeless tobacco.

Major League Baseball took a historic step this year when his five-year collective bargaining agreement is limited to the use of smokeless tobacco. Players and coaches can not carry tobacco cans or bags on their body or form at any time of the fans in the stadium. They are prohibited from using smokeless tobacco during televised interviews, autograph sessions or team-sponsored appearances. The restrictions do not prevent players from chewing while they are in the club or not in the field.

Fines for using tobacco chew

For the second offense, the other written notice is given together with the “recommendations” for counseling. It is not until the third offense, the offender must pay a $ 1,000 fine.

“We believe that there are a number of players who continue to chew tobacco in ballparks, where children can see them on television while they play, and sometimes even when they are interviewed,” Hamm said. “We believe that it is not living up to the spirit of the agreement. We understand that there are cultural ties, and we’re going to be as patient as we can.”

“The ball players have to accept the change, if it is ever to be successful.”

Cigarette ads face extinction: What will Big Tobacco Do?

Australia recently implemented “plain packaging” laws that radically alter and regulate the cigarette packaging. Similar motions have been raised – and rejected – in the United States, while countries such as New Zealand and the United Kingdom have expressed an interest in the legislation. China, the largest cigarette market in the world, openly aims to completely ban cigarette advertising, and raising taxes on tobacco products. Within a few weeks, Russia’s second-largest cigarette market in the world can begin the persecution of tobacco, and that could spell trouble for top manufacturers.

The World Health Organization estimates that 39% of the 143 million people in Russia are habitual smokers. A pack of cigarettes Marlboro – production by Philip Morris International cost about $ 2 in the country. Russian health regulators proposed to increase the tax on cigarettes in 1000 to 510 rubles in 2012, to 4,000 rubles by the end of 2015. Berenberg Bank analyst Eric Bloomquist believes that raising taxes only can reduce cigarette consumption by 20% in Russian.

Producers clearly attacked the proposed legislation. BAT along with Philip Morris generate about a third of its global sales in Eastern Europe, Africa and the Middle East block. JT is based in the former Soviet Union, 46% of its global sales. Amount of money tobacco companies spend on lobbying for those who are trying to push the bill through. “Russia is the second-largest tobacco market after China, in spite of the huge difference in their population. So it is not surprising that the producers so much attack the new law,” said Dmitry Yanin, chairman of the Confederation of Consumer Societies.

Other U.S. cigarette manufacturers like Lorillard and Altria Group will not necessarily be hit as hard. The companies focus more on the U.S. market than Philip Morris and BAT. But mounting resistance to smoking cigarettes abroad can fuel the continuous ranging debate in the US.

Illegal cigarette industry

Things, of course, left the ambitious marketing campaign some tobacco companies including Hiltop Tobacco AJK and National Tobacco Company has gotten into frenzied marketing spree fort its tobacco brands but the effort is likely to end up in whimper should the government authorities take appropriate action to crub these illegal promotions.

As for promotion details Hiltop Tobacco AJK has given 5 +1 redemption on its Fedora brand in the interior of Sindh and Punjab. The move is aimed at increasing off take of Fedora and improving the image of the brand. Advertising content is clearly seen in stores in prominent places.

As if one did not have the example of the National Tobacco Company manufacturers of Classic Royal and Hero also come up with similar offers also including heavy bumper prizes in almost all of the Khyber Pakhtunkhwa.

Reportedly, the promotion of smokers took by storm, as the region is replete with people who have less power and such promotions are naturally taken like hot cake by people of Khyber Pakhtunkhwa.

The question is not only in the interior of Sindh and Punjab only, but the trend is gradually spread to the major cities of Punjab and Sindh. This blatant disregard for the government notification was not a common problem in itself, as it relates to value added offers the client will receive a free gift, etc. to purchase tobacco products.

According to SRO 53 (KE), 2009, weft July 1, 2009 free products, cash, free samples, discounts or products below market value given or offered for the purpose of advertising of tobacco products for tobacco users to create a sale or promotion of tobacco smoking.

Facing the burden of huge volumes of contraband cigarettes, the tax-compliant cigarette industry is on the brink of devastation.

The compliant cigarette industry makes up for 36.8% of total revenues FED and 3.4% of total revenue income of the Federal Council. While the contraband and counterfeit cigarettes was 6.8% of the illegal trade, domestic duty-free cigarettes are 13.8% of the total number of illegal cigarettes.

Such shares are also against SRO 863 (1) / 2010, as these youth targeted promotions. Such promotional activities naturally seduce teens as they try to take advantage of these stylish promotions.

According to the market sources tax has reached such a balant level like cigarette packs is now openly advertised for sale as a low price of Rs 15, while in accordance with Rule 24-B of the Federal Excise Rules issued pursuant to the Federal Excise Act, 2005, the minimum selling price for a pack of cigarettes is much more than that. Fedora now openly sold at Rs 10.

There are more than 0.6 million outlets in the country, where illegal brands are sold with impunity without any fear of the law and marketing scam. The whole enforcement has lacked teeth and the non-compliant industry has flourished. The illegal and non tax units are located in far flung areas of the country were the implementation of law is less stringent.

The sources said that the total tax loss to the government with illegitimate cigarette industry had been estimated at Rs 10 billion, including tax evasion of Rs 7 billion UAH 1 billion counterfeit and Rs 2 billion in smuggling in the financial year 2010-2011.

The number involved indicates this is an extraordinary situation given the resource constraints faced by the government of the day which needs urgent reinforcement.

Robert Pattinson puffing on electronic cigarettes

The “Twilight” star was a bit nervous at the ceremony, presenting an award to his “Bel Ami” costar Uma Thurman, who also took a puff on his e-cigarette.

Twilight star Robert Pattinson was eternal, with no Kristen Stewart on its side in the women’s Elle Awards in Hollywood Awards. He didn’t walk the carpet but did pose briefly for photos with Elle Fanning and Jamie King, both dressed in a stylish and sophisticated design of the main event sponsor Calvin Klein designer Francisco Costa’s sleek and sophisticated design.

Pattinson actually seemed pretty nervous about presenting an award to his Bel Ami costar Uma Thurman at the annual awards – also sponsored by L’Oreal Paris, David Yurman and Lexus – held at the Four Seasons on Monday. In fact, Pattinson was spotted sucking on it now ubiquitous electronic cigarettes before and after he took the stage. It is hard to hide that bright blue light, even if you keep it under the table. And while there is no smoke from the electronic cigarette is an unmistakable white clubs out of the e-smoker’s nose and mouth.

Pattinson has previously been seen puffing quit smokeless gadget in New York premiere of David Cronenberg film, Cosmopolis, and the Los Angeles premiere of a new ballet choreographed by Natalie Portman husband Benjamin Millipied, in moving parts, September 23.

Branding matchmaker, Michael Heller, he is the one who first gave Twilight star – and his girlfriend – artificial cagier connection. “I personally gave Robert Pattinson those electronic cigarettes at the wedding of my friend,” he told The Hollywood Reporter. “It was before he and Kristen Stewart broke up. I gave it to both of them.”

Pattinson finally took the stage to present his onscreen wife Bel Ami with her award Elle. But first he sang her praises for her choice of complex and diverse roles in such films as Dangerous Liasons, Pulp Fiction, Kill Bill, and for her Golden Globe-winning role in Hysterical Blindness.

“I first met with Uma on a movie called Bel Ami and WS pretty crazy experience. She played my wife, the character is meant to be a smart, talented, and witty and better in bed than me, obviously, the role is very difficult to quit.”

“She has a presence that is almost overwhelming,” Pattinson continues. “People quickly forget who they are, when they are in her orbit. And crew members who had not smoked in years suddenly start chain smoking because she provides bowls of tens of thousands of cigarettes for no reason.”

Earlier in the evening, he offered to Thurman, who sat next to him at the dinner table with their agents, puff off an electronic cigarette. And new mom gladly took one puff and just one puff.

The impact of cigarette tax sparks debate

An anti-smoking group says the claim that Missouri’s proposed tax increase on cigarettes that could reduce income is false, but opponents of the increase say their study is looks at the sales tax revenue – not to increase taxes on tobacco products, and the resultant effect.

Stan Cowan, a board member of Tobacco-Free Missouri, cites a national study by Campaign for Tobacco Free Kids that shows all of the 16 states that raised taxes per pack of cigarettes at least 50 cents in the period between 2006 and 2009 experienced a decline in sales and packaging and increase in revenue.

The same study found, says that don’t increase taxes on cigarettes, tend to lose income over time due to the general decline in smoking. Those that raising taxes is less than a quarter a-packs saw no significant bump in revenue.

“This is not theory,” Cowen said Missouri Watchdog.

Voters will decide on Proposition B on the November 6. The ballot measure would increase the state tax rate on most packs of cigarettes from 17 cents to 90 cents, or a 430 percent increase.

The Missouri Petroleum Marketers and Convenience Store Association, the group leading the fight against tax initiated a study at the University of Missouri economics professor Joseph Haslag. If the increase passes, the study predicts, the state and local sales taxes will decrease by $ 67 million, so that 157 million fewer packs of cigarettes are sold.

“I readily admit you generate more revenue from the tobacco tax to the state,” said Ronald Leone, executive director of the MPCA. “What Haslag had a look at the sales tax revenue?

“It should be noted, Haslag was paid MPCA, to write this report,” said Cowen.

He points to the Secretary-General election State Robin Carnahan on the proposal B, which assesses an additional $ 283 million to $ 423 million in annual income tax will be due to the increase.

Some cigarettes will increase even more if the measure passes.

The value of the number of manufacturers brands, such as a Decade, Echo and Edgefield will pay the state will increase from 17 cents to $ 1.469 per pack – jump a little more than 760% – if the offer B passes. This fact is presented on a billboard ad for MPCA across the state.

“These tax increases are on the wholesale level, so that consumers can see their costs at the retail level will increase even more,” Leone told Watchdog.

Lobbyists negotiated this higher level in the legislation, because smaller and newer tobacco companies have not participated in the historic 1998 settlement between the major cigarette manufacturers and state attorneys general, which require companies to pay into a fund to help cover health care costs of smoking diseases.

The nearly 57 cents difference in increasing the value of brands is the sum, much to pay for a pack of tobacco in the state fund as part of the 1998 deal.

“We call it the allocable share issue, “Leone said.” They do not take into account the new companies coming to the Internet and have a competitive advantage.”

The measure will also increase the tax rate on “roll your own” tobacco free from 10% to 35% and raise the tax on cigars and chewing from 10% to 25%.

Cowan takes issue with the MPCA calling B offers 760% tax is greater than this number refers only to the value of brands. How the organization frames the question is misleading, he said.

“It’s a tax increase in addition to pay their fair share into the settlement,” he said.

Cowan, who formerly worked in the tobacco use prevention program at the Missouri Department of Health and Senior Services in the program of prevention of tobacco use in the State of Missouri Department of Health and Senior Services, said that the billboards will never use the word “tobacco”, when referring to the tax increase.

“If people see these signs and do not see the word you’re going to snuff deceive many people into voting against it,” he said.

Groups blowing smoke over cigar tax increase

Those for and against the common measure ballot elections, which would increase the state cigarette tax by 73 cents per pack blow a lot of smoke on the issue.

Opponents of Proposition B have bought billboard space on Missouri’s highways and interstates, saying it would amount to a 760% tax increase.

Area signs by supporters to fill in various areas and advertise that the measure will bring about $ 233 million into education.

Who is right? Both raise valid points.

Current state of Missouri tax rate of 17 cents per pack is the lowest in the country. This is almost twice less than 30 cents per pack is charged in Virginia, which is just above the Show Me State.

Half of the tax increase is scheduled for K-12 public schools, while 30% set aside for higher education. Remaining focused on smoking cessation programs.

It is not clear where the Missouri Petroleum Marketers and Convenience Store Association, or MPCA, the main opponent of increasing the figure gets 760 percent. Officials could not be reached for comment.

Percentages aside, higher cigarette taxes may mean Missouri could lose its competitive advantage in the current States border, Patrick said Ismail, a spokesman for Show-Me Institute, a free market think tank.

The increase would put the tax on the Missouri 79-cents per pack rate in Kansas. It would also be comparable to the 98 cents charged in Illinois, which could reduce the number of Illinoisans, who travel to Missouri to get on cigarettes.

“My concern is that raising taxes makes us less competitive with Kansas tax. Current tax leads to a lot of crossing the border purchase of cigarettes,” said Ismail Missouri Watchdog.

He notes that this problem is multifaceted, with education, health care and taxation. He added that several health sides will complain if the increase takes place and reduces the state of tobacco use, as “smoking kills you.”

Misty Snodgrass, director of government relations for the American Cancer Society, which is poured about $ 2 million in the effort, calls it “a victory of revenue” for schools in need of funding.

State Rep. Chris Kelly, D-Columbia, one of the champions of tax measures in the Missouri General Assembly, said that “the tax would generate revenue that we need, and we also hope that it will prevent teenage smokers.”

But will it actually increase revenue?

Ismail noted out that a higher tax on cigarettes is a victory for public health, as people abandon this life threatening habit. However, this tax increase would be a loss to the education, because a drop in sales of cigarettes leads to a decrease in tax revenue.

University of Missouri economics professor Joseph Haslag conducted a study for the MPCA, estimating that 157 million fewer packs of cigarettes is likely to be sold in Missouri each year if the increase takes place, resulting in a $ 67 million reduction in the tax revenues of the state and local.

MPCA’s website set up to fight the measures calls the state budget a “shell game” and that funding may be diverted from education.

The website from Missourians for Health and Education said studies show that an increase would prevent about 40,000 youth become addicted to cigarettes and convince 33,000 adults to quit.

One group, which seems to be not against the measure, may be a surprise – the big tobacco.

Missouri was one of 46 states to enter into a legal agreement with cigarette manufacturers in 1998, which forced them to pay into the fund to help cover health care costs of smoking-related diseases. A loophole in the law of the State of Missouri, which has not been closed, allows those companies that have not signed the agreement to get a refund at the end of the year after the payment of the fund at the beginning of the year.

“This ballot initiative eliminates a loophole in the law that created unequal conditions for the cigarette manufacturers and retailers in the state of Missouri,” said Bryan Hatchell, a representative of Reynolds American Inc “Primarily for this reason, Reynolds American Inc. has no plans to oppose the initiative Missouri vote.”

Missouri voters rejected a proposal cigarette tax increase in 2002 and 2006.

Companies spend less on cigarettes, smokeless tobacco promotion

Tobacco business leaders spent less money on advertising and promotion of cigarettes and smokeless tobacco products in recent years, according to the latest data from the Federal Trade Commission.

Numbers released Friday show marketing of cigarettes fell by more than 5% to $ 8.05 billion in 2010, the latest year available, from a year earlier. Meanwhile, cigarette sales fell by about 3% to 281.6 billion cigarettes in the same period.

As in previous years, most of the money spent on cigarettes of about 81%, or $ 6.49 billion, was paid for discount retail and wholesale reduce cigarette prices to consumers, the average price for a pack continued to grow to $ 5, 73 in 2010. Consequence of the rise in prices of major federal tax increase on tobacco products in 2009, in conjunction with various state tax increases.

In 2009, the Food and Drug Administration have also been given the authority to regulate the industry, which include additional marketing restrictions, including a ban on tobacco companies sponsoring athletic, social and cultural events or offering free samples or branded merchandise. Several other changes in tobacco marketing is being challenged in federal court.

According to the latest figures, the money spent on marketing smokeless tobacco products fell by almost 10% to $ 444.2 million from 2009 to 2010, sales increased by 6.5%. The company has spent about 19%, or $ 95 million, a discount to wholesalers and retailers to reduce prices for consumers in 2010.

Advertising and promotion of smokeless tobacco have reached all-time high of $ 547.9 million in 2008, tobacco companies seek cigarette alternatives for sales growth as tax hikes, smoking bans, health problems and social stigma make the cigarette business tougher.

The share of Americans who smoke has fallen dramatically since 1970, from nearly 40 percent to 20%, according to the Centers for Disease Control and Prevention. But the decline has stopped around 2004, about 46 million adults in the U.S. smoke cigarettes. It is not clear why he did not move, but some experts have led tobacco companies discount coupons on cigarettes and lack of funding for programs to smoking or to help smokers quit.

According to the latest federal data, about 3.5% of American adults use smokeless tobacco.

The Federal Trade Commission released a report on cigarette marketing in 1967, and similar reports of smokeless tobacco in 1987. He looks at the data from the top of the tobacco companies, including: Richmond, Virginia-based Altria Group, parent company of Matlboro online Philip Morris USA, Winston-Salem, North Carolina-based Reynolds American Inc.; Lorillard Inc, based in Greensboro, North Carolina, and Commonwealth Brands Inc, Bowling Green, Kentucky, a subsidiary of the British tobacco company Imperial.

Cigarette tax increase in Missouri

This November, Missourians will vote on whether to approve a cigarette tax hike.

The initiative, Proposition B, would put an extra 73 cents for a pack on cigarettes, increasing the total amount of the tax to 90 cents per pack. Missouri currently has the lowest tobacco tax in the country at 17 cents a pack.

Income tax free tobacco used to roll their own stores will be 25%t and 15% for other tobacco products.

If approved, Prop B would bring in about $ 283 million to $ 423 million a year according with the assessment of the state auditor. The funds will be divided between K-12 education, higher education and tobacco prevention and education programs.

Ron Leone, executive director of the Missouri Oil Marketers and Convenience Store Association, said Prop‘s 760% increase is destructive.

“It will hurt Missouri consumers, it will force small businesses to close, it will cause people to lose their jobs, and it will generate less tax revenue to local and state coffers, which are already at the limit because of the great recession,” Leon said.

Leone said that if the tax had been more reasonable amount allowing retailers to maintain their competitive advantage of the tax on the higher taxed countries abroad, he would support the proposal.

In 2002 and 2006, voters had the option of raising taxes on cigarettes, but both ballot measures failed.

20% of the proceeds from the tax would go to tobacco abstinence programs, 50% for K-12 education, and 30% to higher education.

Currently, the formula funding of schools is estimated to be $ 460 million under-funded, need formula will fund in full, the money will be distributed to schools based on the registration. This is different from how the money is usually distributed to school districts. The state uses the Foundation Formula to see how much each district receives is based mainly on attendance and local taxes, and at least 25% of the money in each school district must be used with respect to the direct costs of the class.

At the request of the Department of Higher Education: will be responsible for the distribution of funds for public colleges and universities, each institution receiving this funding should take it to a new or existing limited funds, these funds can only be used for education of future teachers, teachers of issues, improving the object, classroom instructional technology, and campus security at least 25% of the money allocated to be used for programs and initiatives related to education, training and development of future educators. This includes doctors, dentists, nurses and other health workers.

Otto Fajen, legislative director of the Missouri National Education Association, said his organization supported Prop B.

“It’s going to move the ball forward, so from the perspective of improving educational opportunities across the state, it is progress,” Fajen said.

Fajen said it is not a massive increase, when you think about how many students are in a state, but any help is important. He does not know why the performance initiative to funding for schools is different than the foundation formula.

Earlier this year, Governor Jay Nixon refused to take sides on the issue.

“I do not expect to be active in any way with this campaign, and we will wait for the verdict of Missourians this fall,” Nixon said on September 4.

Along with the presence of low taxes on tobacco in the country, Missourians have the 48th highest percentage of adult smokers to 2010 study by the Center for Disease Control and Prevention. In Missouri, 25 percent of adult smokers and 11.8 percent of people aged 12 to 17 are smokers.

 Supporters of Prop B, as Rep. Chris Kelly, D-Columbia, for example, an increase in the tax on tobacco in Missouri and provide an important means of education.

“For the potential of teenage smokers, there is a strong correlation between the price and start smoking. And so, we know that the tax will generate revenue that we need, and we also hope that it will prevent teenage smoking,” said Kelly.

Opponents say that higher taxes will lead to loss of income. They are worried people will travel from Missouri to neighboring states with lower tobacco taxes, to buy cigarettes. If Prop B passes, half of the eight states of Missouri border will have higher taxes on tobacco.

“That argument has no intellectual basis, because the state, which has lower taxes, which are close to us just a tiny, little, bit lower,” Kelly said.

Sen. Jim Lembke, R-St. Louis, also spoke against the proposal. He says that there must be reform on issues such as tax benefits, before we tackle a tobacco taxes.

“We are making decisions in this state and those decisions are going the way of corporate welfare rather than the promises that we keep to fund our public schools,” Lembke said

Cigarette Makers Wage Final Battle to Tame Russian Bill

Cigarette manufacturers, including Philip Morris International, Inc. (PM) and British American Tobacco Plc (BATS) are fighting a last-ditch fight against smoking repression in Russia, three weeks to change the opinion of the government.

Russia has to turn a proposal that will ban smoking in public places, sponsorship and the sale of cigarettes in kiosks, Alexander Shokhin, head of the Union of Industrialists, a lobby group for big business, said yesterday. Government legal advisers in August reversed their initial approval anti-tobacco bill, recommending changes to the planned measures.

While cigarette manufacturers and business sector support steps to reduce tobacco-related harm, “is another question, how to act and what measures are effective and which are not,” said Shokhin in Moscow. “In some countries, a total ban had the opposite effect.”

Russian President Vladimir Putin wants to limit smoking and alcohol consumption to stop the decline in the population of the country. Thirty-nine percent of the 143 million people in Russia, the largest tobacco market in the world after China, are habitual smokers, according to the World Health Organization. That compares with 28 percent in China and 27 percent in the U.S.

The government should introduce a bill for legislators on November 1, which prohibits all tobacco advertising and sponsorship immediately, with restrictions on kiosk sales and smoking in public places comes into force on 1 January 2015. The government will resist pressure to weaken the proposal, said Alexey Levchenko, assistant vice-premier of Russia Olga Golodets, which is responsible for health and social affairs.

“No Relaxation”

“There will be no fundamental relaxation of these measures, although some of the language can be corrected,” Levchenko said yesterday on the phone after business Shokhin met ministers responsible for the law before.

Smoking-related diseases kill 23 percent of Russian men and cause economic losses of 6.3 per cent of gross domestic product, according to the Ministry of Health, which says the law could save 200,000 lives a year and reduce smoking in half.

Manufacturer in Europe, producing about one-third of global sales in Eastern Europe, Africa and the Middle East. Japan Tobacco Inc. (2914) is based on the region encompassing Russia, other former Soviet republics except the Baltic States, the former Yugoslavia, Bulgaria, Romania, Croatia and Mongolia for 46 percent of global sales, according to its website.

Tokyo-based Japan Tobacco, whose brands include cigarette-store.biz/online/cameland Winston, is the largest in Asia listed cigarette maker by market value, is about 37 percent of the cigarette market in Russia. BAT and Imperial Tobacco Group Plc, a manufacturer of cigarettes Davidoff, 8 October fell the most in a month in London trading after Russian regulators health proposed tax increase on cigarettes is almost eight times.

Ministry of Health has proposed raising taxes to 4,000 rubles ($ 128) per 1000 cigarettes by the end of 2015 from 510 rubles this year, Finmarket, a division of the Moscow Interfax news service, reported on 8 October, citing the Ministry document.

Proposal exacerbated Russia’s anti-smoking efforts, under the current policy of the government plans to increase the excise tax by about 40 percent per year through the end of 2014. Matlboro online now sells for about $ 2 in Russia.

Reduce consumption

The tax increase, if it becomes law, could push the Russian cigarette consumption decreased by as much as 20 percent in 2015, according to Erik Bloomquist, an analyst at Berenberg Bank, compared to its current estimates, the annual decline of 1 percent to 2 percent.

Nomura analyst David Hayes on October 8 downgraded its outlook for the tobacco industry to bearish from neutral, citing the risk of unsatisfactory after three years ahead of schedule. He cut his recommendation for Imperial Tobacco to reduce from neutral, while maintaining our Buy recommendation on BAT shares.

Australia this year was the first country to require cigarettes for sale in plain packaging with no company logos. New Zealand and the United Kingdom are among the countries whose governments have expressed interest in such activities, which come into force in Australia on 1 December. Governments from Europe to Asia have tightened restrictions on smoking.

Russia should continue to allow smoking in bars and restaurants in sealed areas, and sponsorship of tobacco products and the sale of cigarettes in kiosks, according to Shokhin, a senior member of the ruling United Russia party.

The institute of Legislation and Comparative Law, a government agency charged with checking the legislation which the Board of Trustees headed by the speaker of the lower house of parliament, Sergei Naryshkin, in August criticized anti-smoking law.

The same body government has treaty Philip Morris report on legal aspects of the planned warning labels on cigarette packs.

The efforts of tobacco companies to cancel the anti-smoking legislation are “worried because they have hired some very expensive lobbyists,” said Dmitry Yanin, head of the Moscow based International Conference of Consumer Societies.

Big Tobacco: a comparative analysis to investor’s growth and income

On Thursday, September 20th, Citigroup analysts upgraded shares of Altria Group (MO). The company raised its rating on the stock from neutral to buy and install $ 39.00/share target price. As a result, updates shares MO reacted very nice trade up 2.38% from the opening of trading on Thursday. However, I would like to take a closer look at the tobacco industry as a whole and not only to study income and operating profit from Altria Group, but to compare them with some other names in the industry, such as Philip Morris International (PM), Reynolds American Inc ( RAI) and Lorillard, Inc (LO).

Overview: Altria Group Inc.

Altria Group, Inc, through its subsidiaries, is involved in the production and sale of cigarettes, smokeless products and wine in the United States and abroad. It offers Matlboro online, smokeless tobacco products in Copenhagen, Skoal, Red Seal, Husky, and Marlboro Snus brands, cigars mainly in the Black and mild brand, and pipe tobacco. The company also produces and sells blended table wines under the Chateau Ste. Michelle and Columbia Crest names, and distributes Antinori wine and Villa Maria Estate, and Champagne Nicolas Feuillatte in the United States. In addition, it owns a portfolio of leveraged and direct finance leases rail and road transport, aircraft, energy, real estate and manufacturing. The company sells its products to tobacco primarily to wholesale customers, including distributors, large retail organizations, such as chain stores, as well as the armed forces. Altria Group, Inc sells its products to the wine to restaurants, wholesale clubs, supermarkets, liquor stores and mass merchandisers. The company was founded in 1919 and is headquartered in Richmond, Virginia.

Profit Margin comparison: Tobacco companies

Overall, in my opinion, tobacco industry has some of the best of the average rate of profit, I’ve seen especially when compared to some other branches I have written articles about. The average profit margin of the four companies featured is pretty impressive 23.41%. Over the past 12 months, Altria Group has demonstrated a profit of 25.68%, which puts the company second in three other companies I featured. Of the three other companies Philip Morris led the group with a profit margin 27,06%, Lorillard, Inc came in a strong third showing a profit of 24.08% and Reynolds American last with a mediocre return on 16.81%.

Operating margin comparison: Tobacco companies

As was the case with profits margins, and, in my opinion, the Tobacco industry also has one of the highest average operating margins I’ve seen since I started writing articles comparative some time ago. The average operating margin of four companies featured is quite remarkable 40.78%. The good thing about these numbers is the fact, Altria Group, Inc demonstrated a strong 42.23% operating margin in the past 12 months, but the bad thing is that the operating margin of Defense is only the third place in the group. From the point of view of the other three companies, the rooms are all very well. Lorillard, Inc is the leader of the pack, taking into account the company showed an operating margin of 44.52%, and the Philip Morris came second, demonstrating an operating margin of 43.44%. It should be noted that the Reynolds American is the last among the four companies featured just because the company only managed to show an operating margin of 32.92%.

Final Analysis

Of the four companies featured there are two strategies to consider when it comes to the tobacco industry: growth and income. All four of these companies have shown strong earnings and operating margin for the last 12 months, which from the point of view of growth, of course, the potential long-term investors should consider. In terms of the income of all four companies have shown a very solid crop, and should be considered on the basis of these figures. As of Friday’s close outs were the following companies: Reynolds American Inc. 5, 40% ($ 2.36), Altria Group 5,30% ($ 1,76), Lorillard, Inc 5,20% ($ 6.20), and Philip Morris 3.70% ($ 3.40). In my view, both angles have to give excellent returns over the next 3-5 years are based not only on each of the outputs of the company, but is based on a combination of each company’s growth and stocks income.

Fag Taxes

Sri Lanka hikes tobacco taxes

October 6, 2012 (LBO) – Sri Lanka has increased taxes on tobacco products from October 06; notice posted to the customs office of the island showed increase to extract more money from the citizens and reduce the budget deficit arising from unchecked government spending.

The tax increase came before the budget for 2013, which will be submitted to Parliament in November 08.

In Sri Lanka, a tax on citizens can be raised without consultation outside of the annual budget through the so-called midnight newspaper just as citizens are sleeping, in a fundamental breach of the principle of “taxation agreement” practiced by free countries.

In March 2012, Sri Lanka raised taxes and alcohol as a loss of state-owned enterprises ran manipulate energy prices with the credit, causing a tax loss, money printing and balance of payments crisis.

The notification of the customs of Sri Lanka said, the excise tax on tobacco for cigars was raised to 7,000 rupees per kilogram and cigarettes than 60 millimeters to 4612 rupees per 1,000 of 4,037 or 57.5 cents per cigarette.

For cigarette between 60 and 67 millimeters taxes were increased from 9258 pounds to 8112 in March 1000 and the cigarette between 67 and 72 millimeters of taxes have been raised to 12,100 rupees from 10,953 1.0000.

For cigarette between 72 and 84 millimeters taxes were increased to 14,963 in 1000 from 13,815 cigarettes and more than 84 millimeters to 18 500 of 17 100 rupees in March.

The budget in Sri Lanka has risen to about 6% of gross domestic product by July 2012, compared to the year-end target 6.2% a year.

If taxes were raised or cut spending, the budget is on track to increase to 10%t of GDP.

The rulers of Sri Lanka in force, but not usually to cut costs and recruit more civil servants to add to the tax spending in the country, spurred sections of the ruling class, such as the Marxist JVP which is generally in opposition.

Lecturer at the tax payer-funded system of higher education has also been campaigning for more government spending, including on wages, which will require more taxes on the people.

Tax spending taxpayer funded education called as “free education” in an attempt to mislead the common people who bear the burden.

Tax increase to cover the high costs of the state, and borrowing or printing money can help stabilize the rupee exchange and to keep inflation low.

The proposal eventually devastate Port Tobacco

No one will live in the historic district of Port Tobacco in the preservation plan proposed Charles County government and employees of a private consultant, speakers told the county commissioners Tuesday.

Some of the city at least 15 people, as an idea, and others resist, they said, but no one will be forced to implement this plan.

Commission members unanimously approved a plan allowing employees to form a committee, and to consider the possibility of buying land. There is no clear timetable for implementation.

Port Tobacco, built on the site of a former Indian village, was the district from 1727 to 1895, said consultant Stuart Sirota. Residents have created a museum in 1948, but deserted village is poor as a tourist attraction, because it “is not recognized as a village. People who come looking for it is the idea that there must be something else out there,” said Sirota.

Historically, the “not a village green, in fact, it was mostly dirt,” and it was used as a roadway, said Sirota. “We feel very strongly that there is a very urgent to do so central to the civil, which is really can turn into a really favorite place where people could come for all sorts of events, markets, even weddings, “said Sirota.

Realizing this vision requires the county to buy private land in the historic district, which Kathy Thompson, county community planning program manager, said to be less than 20 acres.

The purchase price is not known.

“Do you have any towing, people want or do not want to sell their land or transfer their land?”

“I think that by going through this process, there are a lot of ideas on how to move forward.’s why we rely so much on the consensus approach,” said Thompson.

Some members of the families of the remaining four villages – Barbours, Wades, Volmans and Jamiesons – do not want to see their ancestral desert town, Thompson said.

“We had a lot of discussion about the proper use for homes. They were residents for most of its history. Certainly, over the past 230 years, families have been raised there. This is a great community to raise a family. There honest debate about whether what is the best use or civil use is most appropriate. I think for families who have children under there, it’s hard to think of that change, and the family will no longer be there, ” Thompson said.

Jerry Volman said he wants to see the city preserved and is open to selling the family land in the county. But first he wanted to know what would be done in neighboring Stagg Hall, home of the colonial era, the planners haven’t specified.

“Basically, I’m trying to sell your home. This is an old and big for one person. None of my children want to move here. If my house is part of the plan, that’s fine as long as he does what the plan says,” to save the city.

A few decades ago, people talked about the transformation of Port Tobacco in another Colonial Williamsburg. But money does not exist, said Sheila Smith, a member of the Society for the restoration of Tobacco Port.

“If you do not have the Rockefeller behind you, it will be difficult to return,” said Smith.

Tobacco vapor electronic cigarette Association responds to V2 Electronic Cigarettes

The Tobacco Vapor Electronic Cigarette Association (TVECA) is announcing to the “e-cigarette” industry that V2 Electronic cigarette Company advertises cigarettes in a corporate video, that their products are “designed for long-term smokers who have had no success in the care of traditional cigarettes. V2 is also establishing an electronic cigarette “association”, who do not believe that electronic cigarettes tobacco in light December 10, 2010 court decision of the mandates that electronic cigarettes are really tobacco products, not drug devices, which is regulated as such by the FDA.

The Tobacco Vapor Electronic Cigarette Association understands that e-cigarettes are less harmful than tobacco cigarettes, but the association has no claim – and does not claim – that the electronic cigarette is a product that is used for output of tobacco cigarettes.

Thomas Kiklas, Co-Founder and chief financial officer TVECA says: “V2’s shocking new claims are not able to prevent the enemies of the electronic cigarette industry a new impetus to try again to ban this incredible technology that 3.5 million Americans have already accepted as an option of tobacco cigarettes.”

Kiklas kept saying, “By creating confusion and making false statements about e-cigarettes, V2 and SFATA which singularly compromises years that responsible companies have put forward, making no cessation and health benefits, items that regularly presents V2 in its Internet and e mail campaigns. “

The Tobacco Vapor Electronic Cigarette Association couple was formed in 2008 to provide the media, legislative bodies and those that are currently using electronic cigarette of one resource industry to provide scientific evidence for the electronic cigarette technology, which received a huge disinformation.

The TVECA has held since its inception that electronic cigarettes are indeed tobacco products and are not a stop smoking or a cessation device. The TVECA and its members works with state, local and federal agencies, as well as e-cigarettes associations around the world to spread science and facts about electronic cigarettes. In fact, TVECA recently joined CORESTA, and is hosting the first electronic cigarette scientific subgroup November 7th and 8th 2012 in Atlanta.

Arguing the case of taxes on tobacco products

Debates about the taxes, are American as apple pie. But there is one tax that improves health and reduces health care costs and brings additional revenue to balance the budget and funding critical needs. Taxes on tobacco products, the data show, literally save lives.

There are now 3 million fewer smokers in the United States, thanks in large part the 62 percent of federal tobacco tax increase, enacted in 2009 to help fund children’s health insurance.

Cigarette sales fell by more than 11 percent in the 12 months after the increase in the cigarette tax, the second largest decline in history.

Teen smoking immediately fell by 10 percent to 13 percent when the tax increase took effect, according to researchers from the University of Illinois at Chicago.

More than $ 10 billion in additional tax revenue tobacco was raised in the first year.

I feel good about this deeply. I carry the burden of the tobacco industry in my blood. My grandfather was R.J. Reynolds, the founder of the company bearing his name. Smoking killed my father, my brother and the other members of my family. I was a long-time supporter of higher taxes on tobacco, because the evidence shows that it is one of the most effective ways to reduce smoking and save many families tragic consequences.

Taxes on tobacco products have an even greater impact when implemented in a comprehensive and sustainable strategy to reduce tobacco use. They need to be supplemented with other proven interventions, including strong smoking laws against smoking media campaigns, assistance to smokers who want to quit smoking and restrictions on tobacco marketing.

To make further progress on tobacco control, the United States needs a comprehensive approach, the government is actively carried out at all levels.

That is the approach the Obama administration to give a new impetus to the fight against tobacco, since 2009 the tax on tobacco products. The Food and Drug Administration have regulatory authority over tobacco, health care reform has expanded insurance coverage for smoking cessation, and unprecedented advertising campaign to raise awareness about the health risks of tobacco products and managed people interested in getting a free help line.

Unfortunately, many countries have moved in the wrong direction in recent years. Progress has slowed the adoption of tobacco taxes and smoking laws, and the state cut funding for prevention and cessation programs by 36 percent. The state will receive more than $ 25 billion a year from the town of tobacco and tobacco taxes, but spend less than 2 percent of it to fight tobacco use. States must do better.

From 2003 to 2011, the New York School to reduce smoking by 38 percent, from 20.2 percent to 12.5 percent. New York is also reduced adult smoking by more than half of the national decline.

And the data show that these efforts not only reduce smoking and save lives, but also save money. 2011 study showed that in the first 10 years of smoking prevention and cessation programs, Washington saved $ 5 in tobacco costs associated with hospitalization for every $ 1 spent on the program. A 2008 study put the return on investment program California almost 50 to 1. States that shortchange prevention and cessation programs are not enough for a remarkable return on investment.

Obviously, tobacco executives do not want to increase taxes on tobacco, because they know that they work. One argument they make is that tobacco taxes are regressive – that unfairly burden falls on poor smokers. This is arrogance. Cigarette companies have targeted low-income Americans and their relationship to tobacco; now argue that the increase in the cigarette tax is unfair to the poor.

What really regressive is smoking itself. Lower-income communities suffer from smoking and disease. If government policy can help poorer Americans to quit smoking, those regressive harm and costs are reduced. The campaign for Tobacco-Free Kids said that saving for a pack a day smoker who is deeply significant, with savings of $ 1,000 to $ 2,300 per year, depending on the state.

After seeing the powerful result of the federal tobacco tax increase, elected officials should support higher taxes on tobacco. This is not about economics – it is about health. But the economy is pretty good, too.

Ttobacco tax increases affect peoples’ behavior

U.S.A President Barack Obama and other liberals believe raising taxes will not change the behavior of citizens and harming the national economy. Consumer response to cigarette taxes means that they are wrong.

Oklahoma tax on cigarettes was increased by 80 cents to $ 1.03 per pack in 2004, but the compacts allowed almost five tribal smoke shops to collect only six cents per pack in tax. This has led to a price advantage of up to $ 10 for a box on non tribal retailers and led to a massive shift in consumer buying habits. Although there were fewer than 200 tribal smoke shops and about 4500 points breeding not to sell tobacco, Native American smoke shops will soon account for nearly 50% of cigarette sales in Oklahoma and as much as 70%t of the market Tulsa. By 2006, according to Oklahoma government loses about $ 48 million a year in tobacco taxes collections because of the shift.

Such a blatant price / tax differences and create a black market for tobacco products, as highlighted again last week, when the federal government seized more than $ 266,000 from the bank accounts of the tobacco company owned by the Seneca-Cayuga Tribe of Oklahoma, and detained tobacco wholesaler in New York. A multi-state investigation centers on alleged trafficking of cigarettes Oklahoma to New York, where the cigarette tax is $ 4.35 per pack.

Obviously, there is a difference between choosing to legally buy cigarettes in lower tax certain network and operating the black market. However, the message is clear: The tax rates influence behavior. This is what President Obama and Washington liberals do not seem to understand.

If the president and Congress to act quickly, we are now less than 100 days of what some call “Taxmageddon”, the date that the Bush-era tax cuts to expire. If that happens as planned, Americans at all income levels will be a hit. The income tax rate would jump from 35 to 39.6% for the top staff (which includes countless small business owners), while in the lowest income will have their tax rate increased by 50%.

The marriage penalty will be restored, the Child Tax Credit will be cut in half, the death rate tax will reach 55%, the capital gains tax rate will rise from 15% to 23.8%, and the top tax dividend rate will increase from 15 percent to 43 , 4%. In addition, payroll Obamacare Medicare tax increase comes into effect on 1 January, up from 2.9% to 3.8% for those with incomes exceeding $ 200,000 (or $ 250,000 for married couples).

The cumulative affect of all taxes, scheduled in January, nearly $ 500 billion. The Congressional Budget Office predicts the decline will occur as a result.

Obama and Democrats in Congress say they want to prevent a tax increase for low-income families and only want to “tax the rich.” That would make a bad situation a little less scary. Hiking taxes on the upper income, capital gains and dividends will clog job creators. Perverse incentives Obama’s tax policy will cause many employers to limit their exposure. The end result will be fewer jobs and fewer opportunities for all.

To avoid paying a few dollars more for cigarettes, smokers are significantly change their behavior. I think that the president, rational entrepreneurs will do when faced billions of dollars in new taxes?

Big Tobacco spends less to sell a product

Tobacco business leaders spent less money on advertising and promotion of cigarettes and smokeless tobacco products in recent years, according to the latest data from the Federal Trade Commission.

Numbers released Friday show marketing of cigarettes fell by more than 5% to $ 8.05 billion in 2010, the latest year available, from a year earlier. Meanwhile, cigarette sales fell by about 3% to 281.6 billion cigarettes in the same period.

As in previous years, most of the money spent on cigarettes of about 81%, or $ 6.49 billion, was paid for discount retail and wholesale reduce cigarette prices to consumers, the average price for a pack continued to grow to $ 5, 73 in 2010. Consequence of the rise in prices of major federal tax increase on tobacco products in 2009, in conjunction with various state tax increases.

In 2009, the Food and Drug Administration have also been given the authority to regulate the industry, which include additional marketing restrictions, including a ban on tobacco companies sponsoring athletic, social and cultural events or offering free samples or branded merchandise. Several other changes in tobacco marketing is being challenged in federal court.

According to the latest figures, the money spent on marketing smokeless tobacco products fell by almost 10% to $ 444.2 million from 2009 to 2010, sales increased by 6.5%. The company has spent about 19%, or $ 95 million, a discount to wholesalers and retailers to reduce prices for consumers in 2010.

Advertising and promotion of smokeless tobacco have reached all-time high of $ 547.9 million in 2008, tobacco companies seek cigarette alternatives for sales growth as tax hikes, smoking bans, health problems and social stigma make the cigarette business tougher.

The share of Americans who smoke has fallen dramatically since 1970, from nearly 40% to 20%, according to the Centers for Disease Control and Prevention.