Virginia Set to Increase Tobacco Tax on April 1
Issue date: 3/25/09 Section: News
By Farah James
Rotunda Reporter
Tobacco taxes are continuing to be a main focus in 2009. The price of cigarettes will increase throughout the United States as a result of a 62-cent tax increase on tobacco products, which will bring the federal cigarette tax to $1.01.
By February 4, both the Senate and the House of Representatives had approved the State Children's Health Insurance (SCHIP) bill, which comes as part of a healthcare bill that funds insurance to uninsured children who do not qualify for Medicaid. The increase in tobacco product tax is intended to help pay for an expansion of the program and to cover 3.5 million uninsured children at a cost of $32.8 billion.
"I think it's good because the money is going to a good cause," said Lynne Grosso, a Longwood junior.
Later the same day President Barack Obama fulfilled a campaign promise by signing the legislation into law. The tax increases will officially take effect on April 1.
Due to the tax increase, customers have quickly learned that the era of $5 per-pack cigarettes has arrived earlier than expected. Lauren Zoby, a Longwood freshman who smokes regularly, was upset when she had to buy cigarettes in the local community. "I'm from Woodbridge, and it's terrible. They [packs of cigarettes] were $3.76; now, they're already $5." According to Farmville's CITGO and Cash and Carry convenience store manager Mickey Mo, the prices of cigarettes went up on Monday, March 16, and customers since then have been appalled by the increase.
Two major cigarette companies, Philip Morris and R.J. Reynolds, have already increased their prices two weeks prior to the planned tax increase date. Since the government is not collecting taxes until April, money from this price increase is going to the tobacco companies for now. Philip Morris, who is known for popular brands such as Virginia Slims, Marlboro and Parliaments, upped their prices to 70 cents per pack and $7-$8 per carton. R.J. Reynolds, manufacturer of Camel, Kool and Winston-Salem brands, upped their prices 40 to 78 cents per pack.
Rotunda Reporter
Tobacco taxes are continuing to be a main focus in 2009. The price of cigarettes will increase throughout the United States as a result of a 62-cent tax increase on tobacco products, which will bring the federal cigarette tax to $1.01.
By February 4, both the Senate and the House of Representatives had approved the State Children's Health Insurance (SCHIP) bill, which comes as part of a healthcare bill that funds insurance to uninsured children who do not qualify for Medicaid. The increase in tobacco product tax is intended to help pay for an expansion of the program and to cover 3.5 million uninsured children at a cost of $32.8 billion.
"I think it's good because the money is going to a good cause," said Lynne Grosso, a Longwood junior.
Later the same day President Barack Obama fulfilled a campaign promise by signing the legislation into law. The tax increases will officially take effect on April 1.
Due to the tax increase, customers have quickly learned that the era of $5 per-pack cigarettes has arrived earlier than expected. Lauren Zoby, a Longwood freshman who smokes regularly, was upset when she had to buy cigarettes in the local community. "I'm from Woodbridge, and it's terrible. They [packs of cigarettes] were $3.76; now, they're already $5." According to Farmville's CITGO and Cash and Carry convenience store manager Mickey Mo, the prices of cigarettes went up on Monday, March 16, and customers since then have been appalled by the increase.
Two major cigarette companies, Philip Morris and R.J. Reynolds, have already increased their prices two weeks prior to the planned tax increase date. Since the government is not collecting taxes until April, money from this price increase is going to the tobacco companies for now. Philip Morris, who is known for popular brands such as Virginia Slims, Marlboro and Parliaments, upped their prices to 70 cents per pack and $7-$8 per carton. R.J. Reynolds, manufacturer of Camel, Kool and Winston-Salem brands, upped their prices 40 to 78 cents per pack.
Viewing Comments 1 - 4 of 4
patsy quick
posted 3/27/09 @ 3:54 PM EST
I think that raising the price on cirgarettes is bull, people are losing their jobs, but every thing is going up gas. food, elec, phone, etc. there are a lot of people that had to take a pay cut to keep their jobs, but every time we turn around there is a price increase. (Continued…)
SmokeThis
posted 4/01/09 @ 5:18 PM EST
SMOKERS IN VIRGINIA SHOULD STOP CRYING AND FIGHT BACK. Smokers stop playing your State Lottery and use that money to support your cigarette habit.
Blake
posted 5/06/09 @ 2:16 PM EST
Well what if the government has failed it's fundamental role of listening to the people. it seems like smokers and some non-smokers were screaming for this legislation not to be passed, but still it passes. (Continued…)
lentynos
posted 4/08/10 @ 3:42 AM EST
Indeed an informative article.
Post a Comment