Dont Laff, You're Next !!

from HERE : http://www.sptimes.com/2007/07/17/Business/Cigarmakers_in_a_pani.shtml

Cigarmakers in a panic
The federal tax on each cigar could rise from 5 cents to $10.
By JAMES THORNER
Published July 17, 2007





Eric Newman punches the numbers on his calculator and gapes at the results one more time.

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.

"I'm not sure in the history of man, since our forefathers founded the country in 1776, that there's ever been a tax increase of 20,000 percent," said Newman, who runs the Tampa business founded by grandfather Julius Caesar Newman. "They had the Boston Tea Party for less than this."

When it comes to tobacco sales, cigars are just a speck compared to cigarettes. In 2006, the nearly 400-billion cigarettes sold domestically dwarfed the 5.3-billion cigars.

But cigars are intertwined with Tampa's lineage.

Though the local industry has shriveled from foreign competition and domestic consolidation, cigarmaking still employs more than 1,000 in Tampa. About 900 work at the factory, offices and warehouse of Hav-a-Tampa, owned by foreign tobacco giant Altadis.

Newman machine-makes 35,000 cigars a day at 16th Street and Columbus Avenue and imports hand-wrapped varieties from Latin America. He estimates Florida makes or imports 80 percent of the cigars consumed in the United States and predicts devastation if the new taxes are approved this summer.

Many casual smokers are well heeled enough to plunk down $10 for a premium puff. But would they pay $15 to $20 for the same pleasure?

"Why don't we just go out of business?" Newman said. "Here, you can run our company, Mr. Government."

Here's the source of the controversy: The Democrat controlled Congress has sought an extra $35-billion to $50-billion for the state children's health insurance program. The program distributes payments to the states to help buy coverage for kids not poor enough for Medicaid.

Cigarettes, which accounted for more than 95 percent of tobacco tax collections last year, are the main focus of the bill. Federal taxes on a pack would jump from 39 cents to $1.

But the legislation has dragged cigars along for the ride. The industry operates under a 4.8 cents-per-cigar tax cap.

Under the proposed bill, taxes on "large cigars," a category that includes all but the tiny cigars sold in 20 packs like cigarettes, would rise to 53 percent.

A U.S. Senate version of the bill under consideration today in the Finance Committee sets the maximum tax per cigar at $10.

"We are a very small industry. We're the fly. The cigarette industry is the elephant as far as tax collections are concerned," Newman said. "We've been roped in with conglomerates that own cigarette companies."

Newman's eyes and ears in Washington, Norm Sharp, president of the Cigar Association of America, was dumbfounded when the legislation went public Friday.

"I thought there was a typo. I thought they meant 10 cents per cigar, not $10 per cigar. I was stunned like everyone else," Sharp said.

Sharp's organization represents 66 members, including Newman, Altadis and Jacksonville's Swisher International, the global company that makes Swisher Sweets.

The association has lobbied to exclude cigars from the bill, but bristles at the public relations challenge: How do you oppose a sin tax Congress has rigged to help sick kids? Senate staffers couldn't be reached for comment.

In Newman's view other companies declined comment and left the talking to Sharp, it's not just unfair but also immoral to overtax a product enjoyed not by addicts but by worthy pleasure seekers. The average aficionado smokes about three cigars a week at about $3 to $5 apiece, according to the cigar association.

"A good wine. A good scotch. A good bourbon. A good cigar. It all enhances the quality of life," Newman said. "We're in the relaxation business."

The Bush administration may inadvertently come to the industry's aid. The president has vowed to veto the bill, not over the cigar provision but over objections to expanding federally financed health care for the non-indigent.

Several business in and around Ybor City, usually blind to the workings of Washington, will be craning their necks toward the capital.

"Things happen strangely in Washington," Newman said.

comment: So, G.W. is gonna veto this POS, but what happens in '09 or '10 when the (D)s have all the power they need and a list as-long-as-your-arm of other thangs they wanna tax ??

Earlier this year I put a note out at a place I thought I might find somebody willin to help me get some tabakker seeds, and sure-nuff, a fine fella stepped up to the task and I now have a small sack of a shit-load of tabakker seeds.. GOOD seeds too !! I sure am grateful to that kind man that showed pity on me in my time of want..

I'm perty sure that there was some that saw my note and wondered just what kinda person would be wantin tabakker seeds in this day and age..

Truth is, the writin has been on the walls for a long while now, and it just keeps gettin bigger !! The sadder truth, is that there are a whole bunch of other stuff on that same list too, and before Big Gubmint gets all of your money they want, you are gonna be doin without a whole lot of shit that you are no longer gonna be able to afford !! DIDJA HEAR ME ?? I said, DOIN WITHOUT, unless you also see that writin on the wall and make arrangements for a source other than the one you rely on now..

Do ya'll like to have a little smear of honey on your bisquit ?? Have you priced honey lately ??

The Kid LOVES juice, and the Mrs. had her Miss Vickies all twisted and knotted this mornin cause those little cans of OJ was ON SALE in the add for $1.29 a can.. Aint been all THAT long since I was fussin bout how many of those same cans of OJ there were in the fridge in the way, and she said they were on sale for 69 cents a piece and she couldnt resist that price..

What if the (D)s hit you with this kind of tax on your favorite after shave of parfum ?? Your bath soap ?? How bout tea, coffee, milk, or (please help me) coldbeer ??

Just take a look around you and imagine what is gonna be on the list they will jack-up the tax on when there aint gonna be anybody to veto it, and in fact, will be the Ringleader of the bunch plannin on ROBBIN YOU ..

Somebody refresh my memory a little, but, wadnt it Jim Stafford that sang the song "The Wildwood Flower" ?? Talkin bout sittin there on that sacka seeds !! But it was Bocephus that sang bout "A Country Boy Can Survive" ..

My PECKERWOOD liberal brother in the Big City is gonna have his fat ass draw up so tight you wouldnt be able to drive a 16penny nail up it with a 2LB shop hammer when he sees this ceegar tax !!