Cigarette prices are skyrocketing
Nigel Robertson has been smoking Marlboro Red Cigarettes for decades, however when he came to Green Creek Smoke shop on Monday, he decided to buy 305s, a discount brand that costs a half from his favorite Marlboros.
“I’m sure I won’t like them, but I have no choice,” complained Robertson, 59-year-old Lakewood Township resident.
The reason for this sad situation can be explained by the fact that Marlboro Reds can be bought for $7.11 in New Jersey, since the cost of a pack of cigarettes itself is less than taxes due to be paid for that pack. The issue will soon become even worse, when the tax-per-pack will be increased by about 80 cents.
Mr. Robertson who has been smoking for 45 years said he used to buy a pack of cigarettes for 30 cents. He added that it is simply unfair for the government to require poor, working people like him to pay $8 for a pack of cigarettes.
When the $1.01- per-pack tax comes into force on April, 1, New Jersey smokers will have to pay around $3.97 in taxes on every cigarette pack they purchase. Moreover, the sales tax imposed on the excise tax has increased as well.
Green Creek Smoke shop clerk Miranda Luis bitterly joked that the government have been imposing taxes on tax. What a ironic situation it is when people have to pay the product price, taxes for that product and also tax on taxes.
Asia Rolle, the owner of Green Creek Smoke shop and a chain smoker said that retailers earn 10-20 cents per pack only, because the major part of price is the tax, and they also have to pay sales tax. She complained that it was not fair.
“It’s legal. If it’s legal, you can’t torture one group”. Rolle mentioned.
During last five years the state tax was raised several times, achieving $2.70 in 2009.
New Jersey State Treasury collects at least $1 billion every year just in taxes for cigarettes and tobacco products. There is only one sate in the US that collects even more money. Not so difficult to guess – of course it is New York. A pack of Marlboros can be bought for up to $10. A rather astonishing price, isn’t it?
However, many experts consider that cigarette taxes have reached the boiling point.
Timothy Smith, vice president of the Center for Policy Research, mentioned that two previous tax hikes contributed to decrease in revenues, since many smokers have found another ways to purchase cigarettes paying less: they either buy from Indian shops or Internet. Yet, the biggest problem is the blossoming black market.
According to Mr. Smith, the black market colonized by various street gangs has emerged as a source for enormous underground profits. In addition, it attracts thousands of minors and young people into smoking, making all the efforts of various health groups pointless.
Policy Research vice president said they have not been advocating for smoking, their aim is securing fair fiscal policies. He mentioned that if government wants people to give up smoking they should seek other ways to do it. And if they want to collect more revenue they should lower the taxes.
It is declared that all the revenue from tax increase would go to health insurance programs, but Mr. Smith has another opinion.
“The taxes don’t go to health. They go to the black hole of the budget,” he said.
<!– /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:”"; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”; mso-fareast-font-family:”Times New Roman”;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} pre {margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Courier New”; mso-fareast-font-family:”Times New Roman”; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} @page Section1 {size:612.0pt 792.0pt; margin:2.0cm 42.5pt 2.0cm 3.0cm; mso-header-margin:36.0pt; mso-footer-margin:36.0pt; mso-paper-source:0;} div.Section1 {page:Section1;} –>
Source: Cigarettesworldnews ®
Tags: cigarettes
