But this is capitalism, no? With the internet, certain traditional businesses must evolve or die. Harsh, I know, especially when people have spent a lot of time becoming valued customers and sometimes friends with their local B%M's, but thats the nature of the game. Arguing that the cigar taxes are putting people out of business because of online sales is basically arguing that B&M owners need some sort of government protection to stay in business. Bottom line is that people find the lowest price and buy at that price. Those who don't compete go away. Even if all taxes were abolished on tobacco, internet sites would be able to sell cigars cheaper due to lower operating costs.
If the government wanted to tax cigars and keep small businesses alive, they'd have to also start collecting taxes on internet sales across state lines which would ensure that the prices wouldn't be different whether you ordered online or walked over to your local B&M.
Ask the big music companies how their profits are looking now that with the advent of itunes and similar services we no longer have to buy a whole CD or record just for one song. Or how about the big TV networks and Cable stations, who now have to compete against the internet as the main entertainment source in people's homes.
Just my :2 and probably bad economic/business analysis
and for the record I am against high tobacco taxes because naturally as a cigar smoker, I want to buy cigars at as low a cost as possible.
