Quote:
For smokers who bargained on roll-your-own cigarette stores for cheap smokes, it looks like those days are numbered.
On Friday, President Barack Obama is expected to sign into law a federal highway bill with a section that redefines tobacco manufacturers to include any business with a roll-your-own cigarette machine and taxes those products at the same rate as packaged smokes.
The move comes a month after Illinois increased taxes on such roll-your-own machine-made cigarettes.
Marcia Smith, 47, of Lake County, decided after the state tax increase that she should move her Smokes & Such tobacco shops in Skokie and Gurnee to Wisconsin, where taxes on rolled cigarettes are lower.
If Obama signs the law, she said she’ll shut her doors.
The machines, which cost about $33,000 each, allow customers to pick their own tobacco and pour it into a device that can roll the tobacco into a carton, or about 200 cigarettes, within minutes.
Since 2009, RYO stores have been selling cigarettes with far lower taxes than packaged cigarettes.
Why? In 2009, Congress more than doubled the federal excise tax on cigarettes, and, to bring RYO tobacco in line with packaged smokes, raised the tax on RYO tobacco from $1.10 a pound to $24.78 a pound. Yet it raised the tax on pipe tobacco by a far smaller amount — from $1.10 to $2.83 a pound.
|
Roll-your-own cigarette stores going up in smoke - Chicago Sun-Times
This was a bill that was pushed by Max Baucus, democrat, of Montana. Philip Morris and another tobacco company made big contributions to Baucus so he would sponsor this bill. The bill was suppose to be signed on Friday by obama, but I have yet to learn if it has.
Hundreds more people are going to lose their jobs because of this. RYO stores will be closed all because government wants to tax you to death.
This will hurt the poor and middle class the most, but I doubt that obama and congress give a damn.
RYO tobacco was better than what you got from the large tobacco giants because there were no chemicals added to it and you could by your rolling papers that were free of chemicals as well.
This also effects me, as I was rolling cigarettes for people here. We have smokers who could not afford the price of a pack of cigarettes so when I saw this I bought a hand rolling machine where I could roll three cigarettes at a time. I also sold my cigarettes five at a time. Some of my customers would by only ten cigarettes every other day some bought a pack a day, but I sold them for about $3.50 a pack. I wasn't getting rich but any means, but I made a few dollars on the side, now that will dry up.
Taxing the American people to change their lifestyle is a crime, but yet to few people will holler about it anymore. Government is out of control and we will eventually end up looking like some third world country before to long unless we the people stand up and start fighting back on all these tax increases.
Here is one more article on the subject:
Roll-your-own cigarette operations to be snuffed out - Business - ReviewJournal.com