Get ready for $11 a pack cigarettes

This all stems from the Big Tobacco Settlement between 46 states.

Big Tobacco was given in effect a monopoly (new cigarette companies are required to deposit .10 per each cigarette sold into a trust established under the settlement agreement... Big tobacco is not required to do the same,, creating a $2/pack cost advantage).

The settlement payments to each of the states are in the form of taxes. Big tobacco gets a get out of jail free card, a monopoly and its customers paying their settlement in the form of taxes.

Furthermore, to protect the cigarette tax income streams of these states use the Jenkins Act from 50+ years ago to prevent internet / mail order cigarettes. They further barred UPS/Fedex from shipping cigarettes for any online merchant and the credit card companies for facilitating financial transactions for any online tobacco purchases.

Even the Indian tribes have been shut down from selling cheap cigarettes.

Taking a step back this master Tobacco Settlement is just a big scam/bribe. Their Lawyers made a boat load and deserved every cent because Big Tobacco got a sweetheart deal and can not possibly lose.

An interesting read is yesmoke.eu they got the full wrath of big tobacco and the US government...
 
Quote from cstfx:

Get ready for $11 a pack cigarettes

By Aaron Smith, CNNMoney.com staff writer
June 22, 2010: 12:05 PM ET

NEW YORK (CNNMoney.com) -- New York City smokers already pay the highest cigarette taxes in the nation, but a new state law will push those taxes even higher this summer.

The state legislature on Monday approved a bill adding an additional state tax of $1.60 to every pack sold, effective July 1. This bill, which was signed by Gov. David Paterson on Monday, will raise the state tax to $4.35 per pack.

New York City smokers pay an additional municipal tax of $1.50 per pack, for a current total tax of $4.25 per pack. That's the highest state-local tax whammy in the country, according to the Campaign for Tobacco-Free Kids. Chicago is the runner-up, at $3.66 per pack.

This new tax increase means that smokers in the city will pay $5.85 per pack in taxes. This drives the average local price up to nearly $11 per pack, according to some estimates.

The tax hike is aimed at generating an additional $440 million in 2010-2011 tax revenue to support healthcare programs.

The bill also requires that taxes to be imposed on cigarettes sold at Indian reservations, including the Shinnecock Indian Nation, which was recently recognized by the federal government.

"We've had very preliminary talks with not only Gov. Paterson but the Spitzer administration, so we knew this was coming and we're following it closely," said Randy King, chairman of board of trustees for the Shinnecock Indian Nation in Southampton, where several stores sell tax-free cigarettes. "We're just going to take the information back to the tribe and see what direction we get on how to approach it."
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Kind of makes it reasonable to drive to virginia or south carolina and pick up a few dozen cartons and save $100s of dollars. Or if you need a job, just buy a carton in S. Carolina, sell it for double in new york and you still have the cheapest prices in town.
 
Quote from peilthetraveler:

...Or if you need a job, just buy a carton in S. Carolina, sell it for double in new york and you still have the cheapest prices in town.
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And you'd be doing god's work, isn't that right, peil?
 
Increase the taxes more and in all states.

Not only are smokers killing themselves but others with second hand smoke. I always see smokers throw out their cigarette butts out the window when driving.
 
Quote from Ivanovich:

I agree, tax the shit out of it. And before any of you folks start pointing out how I'm normally against raising taxes, zip it. We're talking about something that not only can kill the person using it, but others who want nothing to do with it but just happen to be in the vicinity.

I'd vote for it to be illegal if I weren't against more government regulation.
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if you tax it too much smugglers will bring it for a half price
 
Quote from Gabfly1:

So your ideology is getting in the way of your conscience and better judgment? :D
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Yes, because if I let it go on one, then it's a slippery slope.
 
Quote from kashirin:

if you tax it too much smugglers will bring it for a half price
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Let them try! You think they'd be able to keep up with the demand? The demand side would wane quickly as people just simply give up and look for some other vice.
 
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