Cigarette prices hit smokers’ pockets
Scientists believe that federal tax hikes and tobacco industry price increase would contribute to thousands smokers kicking up their habit; At the same time many economists consider that price hikes would lead to bankruptcy of many small businesses and that would leave thousands of people jobless in the difficult time of recession.
On the threshold of tax hike which comes into force on April Fool’s Day, many bitter jokes like “Save a kid, smoke a cigarette,” or “If you want to be a hero, buy a carton” can be heard anywhere, since the majority of cheap cigarettes smokers are trying to find at least one reasonable explanation on their question – why all the administration’ plans have been put upon their shoulders.
It gets more and more expensive to smoke these days. For example, if you are an Iowa resident, undermining your health by smoking would cost you $2.36 for a single pack in just taxes after new tax enters into effect on April, 1. It is even more expensive to smoke in New York.
The federal government claimed that they had decided to increase the cigarette tax to $1.01 for each pack in order to collect the revenue for funding additional Children’s Health Insurance Program. According to this program, it would provide health insurance for more than 4 million children who did not get health insurance- Medicaid since their parents earn too much to qualify for Medicaid. It is supposed that the tax would help to collect more than $32 billion in four years. However, it seems that those Washington smart-heads forgot to count how much smokers would give up being simply unable to pay these larger-tan-life prices for cigarettes.
Price hurts.
In the situation when the majority of states have imposed indoor and public smoking bans, and with the recent rather difficult economic situation, the cigarette tax hikes and constant price increases would definitely give rise to the desire to give up smoking and buy cheap nicotine replacement gum than expensive cigarettes. Every smoker would find himself in the situation where he would have to choose either to quit or to pay enormous prices.
The desire to give up smoking appears to a wise and healthy solution for both body and wallet. And here the reverse side of the coin emerges, since there may be simply not enough wealthy smokers who would pay in order to contribute to compensate an underfunded children’ health insurance program.
Winners and losers.
As regards the losers, at this point everything is rather clear. The biggest losers are the smokers who would have to pay or give up and those uninsured children who would never get a health insurance because thousands of smokers would quit leaving the Healt Insurance Program without funding.
The question is more complicated with the winners. However, they can be found too. It is distributors of electronic cigarettes, smokeless tobacco, and nicotine replacement therapies.
Those companies who distribute so-called e-cigs online have already earned hundred thousands on their products, because many people believe that electronic cigarettes are healthier and safer alternatives of conventional cigarettes, the fact that various health organizations led by World Health Organization have denied.
Therefore, the only conclusion that comes to mind is that our government should not punish but hail smokers, who would pay instead of government for the treatment of sick kids.
<!– /* 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: Ourcigarettesnews ®
