CRA Update: Victory In Pennsylvania!

[EricDriscoll]

My home state of NY took a devastating hit recently however at least there is some good news for Pennsylvania. Enjoy brothers!


**CRA Announces Victory In Pennsylvania**

30% Cigar Tax Proposal Defeated!

BREAKING NEWS

Just a short while ago, Pennsylvania senators voted against Governor Ed Rendell's 2010-11 budget proposal to levy a whopping 30% tax on cigars (Other Tobacco Products) in an effort to plug the Commonwealth's budget shortfall.

This was Governor Ed Rendell's second attempt at proposing a first-ever tax on premium handmade cigars for the Keystone State.

Pennsylvania is one of only two states that does not tax cigars, with Florida being the other.

THANK YOU

CRA would like to thank in large part Pennsylvania's senators and leadership and all the CRA members who took time to contact Governor Rendell and other members of the Commonwealth's leadership to express your opposition to levying any tax on cigars.

This important victory comes within less than 24 hours after our victory in Springfield, Missouri where a proposed smoking ban was defeated due to the overwhelming response of local business owners and CRA members!

http://www.pennlive.com/midstate/index.ssf/2010/06/pennsylvanias_budget_agreement.html

Rendell said he was disappointed that the Legislature opposed a plan to tax cigars and smokeless tobacco.

Deborah Brown, acting CEO of the American Lung Association of the Mid-Atlantic, was astounded that Pennsylvania would remain the only state in the nation that doesn't tax smokeless tobacco and one of only two that don't tax cigars. She said if those products were taxed at the same rate as cigarettes, it could have produced $90 million to $100 million.

“I can't believe they left this money on the table and they'd rather see people laid off from their jobs than to tax these products,” Brown said.

Republicans opposed taxing these products out of fear that it could result in four of the nation's eight leading cigar retailers to leave Pennsylvania.

“For anyone who grumbles about spending cuts, I grumble, too,” Rendell said. “The only way we could have avoided some of these cuts ... is if we passed a new revenues package” that included the tobacco taxes.

Please continue you the fight!

"Call To Arms!" http://www.cigarpass.com/forumsipb/index.php?showtopic=58428&st=0&p=878770&hl=call%20to%20arms&fromsearch=1&#entry878770

 

[surfish.dave]

That's friggin' sweet. Congrats to CRA and all involved.

 

[LouieD]

“For anyone who grumbles about spending cuts, I grumble, too,” Rendell said. “The only way we could have avoided some of these cuts ... is if we passed a new revenues package” that included the tobacco taxes.


That quote says it all!! The SOBs running the state and federal governments REFUSE to even think about spending cuts. The pathetic morons in the NY state government still can't get a budget passed, but they have passed more new taxes. Why? Because they WILL NOT cut spending.

 

[PSU OpusX]

Thank god this wasn't passed but I know it will only be soon that some form of a cigar tax will be passed in PA.

 

[Fia]

Thank god this wasn't passed but I know it will only be soon that some form of a cigar tax will be passed in PA.

Great news. But agree that it is only a matter of time before a tax is passed. Hoping that when that day comes they are reasonable. Maybe putting a .5 cent cap on cigars. 2.00-2.50 a box tax is reasonable.

 

[Kid Montana]

Thank god this wasn't passed but I know it will only be soon that some form of a cigar tax will be passed in PA.

Great news. But agree that it is only a matter of time before a tax is passed. Hoping that when that day comes they are reasonable. Maybe putting a .5 cent cap on cigars. 2.00-2.50 a box tax is reasonable.

How dare you sir! I defy any additional tax burden to be reasonable.

 

[Fia]

Thank god this wasn't passed but I know it will only be soon that some form of a cigar tax will be passed in PA.

Great news. But agree that it is only a matter of time before a tax is passed. Hoping that when that day comes they are reasonable. Maybe putting a .5 cent cap on cigars. 2.00-2.50 a box tax is reasonable.

How dare you sir! I defy any additional tax burden to be reasonable.

It sounds very reasonable when you consider the alternative would have been 30% or even worse what happened to New York or Utah. After having to pay 50% in Hawaii, we would be ecstatic to have a .5 cap on cigars. Very seldom does negotiation result in an all or nothing situation. They will come after cigars and OTP again. Then again, thats just my .02

 

[gtadroptop]

Afraid I agree with the majority. Only a matter of time.

But until then - WOO HOO!!!! :thumbs:

 

[MoeCizlak]

My home state of NY took a devastating hit recently however at least there is some good news for Pennsylvania. Enjoy brothers!


**CRA Announces Victory In Pennsylvania**


Deborah Brown, acting CEO of the American Lung Association of the Mid-Atlantic, was astounded that Pennsylvania would remain the only state in the nation that doesn't tax smokeless tobacco and one of only two that don't tax cigars. She said if those products were taxed at the same rate as cigarettes, it could have produced $90 million to $100 million.

“I can't believe they left this money on the table and they'd rather see people laid off from their jobs than to tax these products,” Brown said.



"Call To Arms!" http://www.cigarpass.com/forumsipb/index.php?showtopic=58428&st=0&p=878770&hl=call%20to%20arms&fromsearch=1&#entry878770

I found this part the funniest/saddest. My state passed a smoking ban indoors awhile back due to "health reasons". Although you can smoke inside of the casinos because to ban smoking there would mean the state wouldn't garner as much money from them. Total hypocrisy. So too did I find Ms. Brown's comments. The CEO of the American Lung Association whose chief concerns should be the "evils of smoking" and "one cigar is equal to 12 cartons of cigarettes" but her stated concern is that of a financial nature. If it wasn't so maddeningly hypocritical, it would be amusing.

 

[ironpeddler]

While this may look like a victory, as many have already said, a tax in PA on cigars is inevitable. When a state stands in a vast minority, that fact will be used to eventually pass the increase....re: CONFORMITY. I think the delay may be based in part to the rich heritage Pennsylvania has enjoyed with the tobacco industry for over 100 years. Once the old timers fade away, the anti-smoking zealots will swoop in and tax & spend.

I personally feel that a victory in NY would have spoken much louder across America that enough is enough with the taxation of tobacco products. The fact that NYS passed such an outrageous increase to an already preposterous tax rate shows us what the future will bring.

BECAUSE.....we must remember that the taxing of tobacco products is always "for the children"....in whatever capacity that may be

 

[badwhale]

$90mil-$100mil is nothing compared to the overall budget. The proponents of any tax never illustrate that, however 30% addition to my cigar budget, assuming I make all my purchases in PA, is devestating.

Will

 

[IrishRenegade]

$90mil-$100mil is nothing compared to the overall budget. The proponents of any tax never illustrate that, however 30% addition to my cigar budget, assuming I make all my purchases in PA, is devestating.

I agree that $90-$100 mil is a drop in the bucket for PA and if a tax increase does go into affect, some of those estimated tax dollars won't materialize because consumers will change their buying habits to find better prices

 

[Fia]

All those policticians who want to increase tobacco taxes to generate more revenue need to go back and read the chapter on price elasticity in the Econ 101 book!!! Sometimes less = more!

 

[MarkQ]

I live in NY, but most of my non-cuban purchases are made in PA. I agree with the majority that's it's only a matter of time before they push the tax thru. They might save a few government jobs, but those retailers and all the businesses that support them (think UPS/USPS, office supply and packing supply companies, utility companies, etc) will take a big hit if not pack up and move out of state. These excessive taxes really just encourage normally law abiding citizens to break the law and get their product elsewhere. First SCHIP (which I suspect I suspect an attempt to raise will occur in the not too distant future) and now this. When this tax goes thru it will only push more of my sales and money to overseas vendors. Then they get nothing.

 

[Kid Montana]

How dare you sir! I defy any additional tax burden to be reasonable.

It sounds very reasonable when you consider the alternative would have been 30% or even worse what happened to New York or Utah. After having to pay 50% in Hawaii, we would be ecstatic to have a .5 cap on cigars. Very seldom does negotiation result in an all or nothing situation. They will come after cigars and OTP again. Then again, thats just my .02

Sorry about that, I'd forgotten to take off my libertarian activist hat when I sat down and posted. Won't happen again.

 

[gahdzila]

Good news for everyone, IMO.

Famous and CI are both in PA...a 30% tax there would affect even my buying habits from way down here in Louisiana. Lost business is lost jobs.

 

[drewman285]

That is a great feat! Thank you CRA!