House passes bill that increases cigar taxes 225-204

T

tippytwo

ChestBeater
read:

http://www.breitbart.com/article.php?id=2007-08-01_D8QOJ0B80&show_article=1&cat=breaking

"House Democrats pushed through legislation Wednesday to add 6 million lower-income children to a popular health insurance program while making deep cuts in federal payments to Medicare HMOs, defying a veto threat from President Bush.

On a 225-204, mostly party-line vote, the House passed the legislation, which would add $50 billion to the decade-old State Children's Health Insurance Program and roll back years of Republican- driven changes to Medicare. "

Also, I found the bill and the taxes. http://thomas.loc.gov/cgi-bin/query/F?c110:1:./temp/~c110HgCuuG:e538842:

I'm not really understanding it though. Maybe you can help me. It seems that all cigars will be taxed $1 even ??? Not sure what the 20.719% to 44.63% means. Maybe that means we are taxed 44.63%, but the maximum of that 44.63% would be $1.

(d) Large Cigars- Paragraph (2) of section 5701(a) of such Code is amended--

(1) by striking `20.719 percent (18.063 percent on cigars removed during 2000 or 2001)' and inserting `44.63 percent', and

(2) by striking `$48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001)' and inserting `$1 per cigar'.

-T2
 
My understanding is that the amount each cigar could be taxed was raised from 20.719% to 44.63%, with a ceiling of 1$. I believe the old ceiling was like five cents? Also your local tobacconist won't have to pay back taxes on his already stocked inventory, which saves pretty much every B&M from a really crappy April 15th.
 
and my "any law that has 'for the kids' or 'think of the children' in it is bound to **** over someone" quote comes true again. ****ing congress.
 
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Does anybody know if mail order cigars are subject to this tax? If so, I would assume that a lot more people will import cigars from switzerland that would be exempt from the tax.
 
krisko said:
Does anybody know if mail order cigars are subject to this tax? If so, I would assume that a lot more people will import cigars from switzerland that would be exempt from the tax.
Click to expand...

good question. This is an excise tax, so from what I understand about it the cigar manufactures, not the retailers are taxed. The tax the manufactures have to pay, however, is passed down to the customer due to higher prices the manufacturer charges.

Because the cigar manufactures would only get taxed for cigars sent to the USA, cigars sent to other countries would not be taxed. The way I understand the bill, you would not get taxed on any imported cigars from retailers outside of the USA because this tax is an excise tax.
 
So it is only raised by a maximum of $1.00? I thought it was a massive tax increase. That doesn't seem too bad, but I still don't like it.
 
I'm confused...is this tax thing over? What is the tax on cigars now? Did the President veto anything or did they change it to his liking? Where are we going and why am I in this handbasket?
 
Man the taxing is getting rediculous, It amazing that the government didnt learn from prohibition the first time, they created a black market that made alot of people very wealthy !
 
So many of these tax hikes are just insane- especially the ones that hide behind the words "children" or "poor" or "environment" etc... Too much emotion/spin and not enough thought in this country. Look at the debate between Ron Paul and Giuliani- perfect example- Giuliani starts speaking forcefully about 9/11 making rediculous statements and everyone is cheering. I get so frustrated with the ignorance sometimes. This lack of thinking isn't what built this nation.
 
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