No, I didn't misplace the decimal point. The Federal Government is proposing a 20,000% increase in the cigar tax:
It's no mathematical error: The federal government has proposed raising taxes on premium cigars, the kind Newman's family has been rolling for decades in Ybor City, by as much as 20,000 percent.As part of an increase in tobacco taxes designed to pay for children's health insurance, the nickel-per-cigar tax that has ruled the industry could rise to as much as $10 per cigar.
This one shocks the hell out of me. Not because of the size of the increase mind you. The government has no qualms about such things. They have the power to kill you for not complying, why should they worry about the amount? No, I'm surprised because I largely believed cigars and pipe tobacco would always be exempt from general tobacco legislation. Not just because I smoke a cigar from time to time, but rather because legislators do. And if politicians are known for one thing, they're known for doing what's in their own best interest. And Lord knows, they'd never raise the taxes on things they enjoy.
Of course, seeing as how Republicans have no problem making prostitution illegal even as they have a habit of going to them for certain services, and Democrats serve endangered species at wedding parties they throw, I guess I shouldn't be all that surprised. Either way, this is a pretty stupid move. They're going to raise the price of cigars so high as to pretty much put cigar makers out of business, which means that no money will come in to pay for their pet project.
Via Professor Bainbridge.
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.