Senator Dick Durbin Calls for a Tax Increase on Premium Cigars
US Senator for Illinois, Dick Durbin, along with Senators Frank Lautenberg (D-NJ) and Richard Blumenthal (D-CT) are calling for an increase in federal taxes on premium cigars. The proposed legislation, called the “Tobacco Tax Equity Act of 2012,” aims to do the following:
- Tax all tobacco products the same higher taxes that cigarettes are subject to
- Discourage minors from using tobacco products
- Increase government revenue (the legislation is estimated to boost government funds by $1 billion)
If the legislation is passed, we can expect the “Tobacco Tax Equity Act of 2012” to significantly increase the cost of purchasing premium cigars.
- Tax ceiling on large cigars would be raised over 150%, from 40.26 cents to 100.66 cents
- A tax floor would be created starting at 5.033 cents
The legislation will also greatly impact the cigar industry and all of the jobs associated with it. Currently, the premium cigar industry has created 85,000 jobs in the United States and hundreds of thousands throughout the world. If this legislation passes, those individuals who rely on this industry for their livelihood could be left unemployed. The legislation would also eliminate cigar events where cigars are passed out to cigar smokers of legal age and curtail the creation of new cigar blends.
If you are against this legislation, we encourage you to make your voice heard. Contact your state senators and tell them your opinion on the Tobacco Tax Equity Act of 2012. The premium cigar industry is at stake and we still need to take every action possible in order to protect premium cigars from unfair and unwarranted regulation.