Proposed tax hike and your response?

[Isaac]

I have a feeling that the tax hike probably wont go through, but in this age of taxing vices to oblivian it is a possibility. What I am seeing is that a typical C&D tin would run close to $60 in the US.

What are you doing about it now? Any specific blends that you are buying up to prepare for the inevitable?

 

[Toothpick]

On all tobacco? Just pipe tobacco? Cigars too? If this is true I may do some research to see how much my favorite cigars could “maybe” go up to in price. If its a lot more I’ll stock up a few boxes. Otherwise, meh.

 

[Kentos]

I have been cellaring heavily for several years in anticipation of something like this. Either a tax increase, prohibition of internet/mail order, or massive tobacco crop blight. Some called it irrational paranoia, hoarding etc. If you intend to stockpile tobacco, it would be best to stockpile what you like obviously, and blends you don’t know it you like, tinned would probably be easier to trade in the future.

 

[Kentos]

 

[Benzadmiral]

The amounts in the middle column are the *taxes* on a pound now, not the cost, right? In which case the total, retail plus tax amount, for a pound will be much higher than it is now (and it ain't cheap). I suppose we had all better cellar some stuff, in case.

 

[Toothpick]

So if i buy a box of cigars now for $100 the same box will cost $150 after the tax increase? That’s all I really wanna know. What’s the percentage of tax on cigars after the law goes in affect. They don’t make it easy to find.

I’ll just wait until all this settles and they vote it in. If it’s to much I’ll just quit smoking.

 

[Columbo]

Altria has recently stated their intention to be "smoke-free" by 2030. Their corporate website is an anti-smoking church now. And this from presumably one of the industry leaders. They are telegraphing their trajectory now. It's more than just raising prices and taxes to prohibitive levels. At some point I expect more products to be flat out discontinued.

The war against tobacco here in the US is in full swing, and has been for several years. It may be even worse in the UK and Australia. You get the government you 'voted for'. Saying anything more here would start getting too overtly political.

I have cellared substantial reserves over many years. But not because of any feared 'tobaccoypse'. Some for blends that I liked and were a limited release, or others I believed might be eventually phased out. I also never liked paying shipping charges, and enjoy deals. Buy cheap and stock deep. After it got harder locally, I always tried to have at least a year of my daily blend in the cellar, just in case. That practice helped when Middleton effectively pulled the plug on my old PA, as I had 8 tubs in reserve. One I finished, one I gave to my son, and the other six I plan to enjoy or gift, one per year.

It's now more than Mrs. Columbo presently weighs, and more than I will likely smoke up in my remaining lifetime. Enough for my son and his issue to someday enjoy for a long time. But all at a tolerable cost, spread out over the years.

Others here probably have much more cellared than I do.

 

[Benzadmiral]

I suppose I'd better stock up on Half & Half, Sir Walter, and the other codgers I like. And if I'm going to try anything more exotic, I'd best grab some of it soon. The trouble is I don't have space to jar any of the stuff in my kitchen closet or anywhere else.

 

[Kentos]

The amounts in the middle column are the *taxes* on a pound now, not the cost, right? In which case the total, retail plus tax amount, for a pound will be much higher than it is now (and it ain't cheap). I suppose we had all better cellar some stuff, in case.

Yep middle is now, right is proposed taxes. That’s federal so you have to figure in the state taxes as well.

On a 2oz tin the federal tax is theoretically 6.25 extra, so I don’t know where the 50.00 a tin price came from. The info above may be outdated.

 

[njpaddy]

In my 1960s college days, and into the 70s, my vice was 2+ packs a day of Lucky Strikes that cost $2.30 a carton (not a typo). My wife and I gave up cigs after our first born. Thanks to B&B, for a time after retirement, I did dabble with a pipe. While I had a couple of pipes costing over $100, my favorites were cheap corncobs with black Cavendish tobacco. After a couple years, I gave up tobacco for gin. Booze will be the next enjoyment the govt kills.

 

[Columbo]

Yep middle is now, right is proposed taxes. That’s federal so you have to figure in the state taxes as well.

On a 2oz tin the federal tax is theoretically 6.25 extra, so I don’t know where the 50.00 a tin price came from. The info above may be outdated.

Some states really pile it on, too. For instance, in PA, the present tax on RYO and pipe tobacco is 55 cents per OUNCE, on top of the 6% state sales tax. So on your typical 14oz tub of SWR that normally sells everywhere else for say $32, add $7.70 in state tobacco tax, and $1.92 in sales tax, for a total of $42.62. That comes out to nearly $3/oz for OTC pipe tobacco, and an effective tax rate of 33%, even before federal taxes are considered.

So when JR every so often offers SWR for under $30, with another 20% off coupon code and free shipping, I snap up several tubs of it.

And it’s why buying from Boswell’s really has become a Christmas-only treat anymore.

 

[AimlessWanderer]

All still significantly cheaper than the UK.

Pipe tobacco duties here are £134.24/kg, (roughly $82 USD per lb), AND then there's a further 20% VAT on the total product cost.
The lowest price you'll find for 1lb (well slightly more, 500g) of ANY pipe tobacco, is £150, or $200+ USD

And to put it into perspective further, the Aussies pay over $100 for a single 2 ounce tin! So yes, it would be a bitter pill for Americans to swallow, but you'd still have some of the cheapest tobacco prices in the developed world.

 

[Kentos]

All still significantly cheaper than the UK.

Pipe tobacco duties here are £134.24/kg, (roughly $82 USD per lb), AND then there's a further 20% VAT on the total product cost.
The lowest price you'll find for 1lb (well slightly more, 500g) of ANY pipe tobacco, is £150, or $200+ USD

And to put it into perspective further, the Aussies pay over $100 for a single 2 ounce tin! So yes, it would be a bitter pill for Americans to swallow, but you'd still have some of the cheapest tobacco prices in the developed world.

Small consolation to guys used to getting it relatively dirt cheap . A sign of the times.

 

[DC_MPA]

Meh, maybe it’ll calm the markets. Supply vs demand. Right now demand surpasses supply. Plenty of people out there willing to pay $100 for 8oz of Esoterica blends. Less will pay $150, even less at $200. If I have to pay $125-150 for 500 grams of my hard to find blend but it’s now consistently available, I like many will pay it. Same with booze. I drank scotch for years. Comfortably paid $50-70 for single malt good blends. Previous generations thought I was crazy because they paid $20-30 for the same bottle and now watching people gladly pay $100-125 for the same blends, I’m calling them crazy.

 

[Benzadmiral]

Meh, maybe it’ll calm the markets. Supply vs demand. Right now demand surpasses supply. Plenty of people out there willing to pay $100 for 8oz of Esoterica blends. Less will pay $150, even less at $200. If I have to pay $125-150 for 500 grams of my hard to find blend but it’s now consistently available, I like many will pay it. Same with booze. I drank scotch for years. Comfortably paid $50-70 for single malt good blends. Previous generations thought I was crazy because they paid $20-30 for the same bottle and now watching people gladly pay $100-125 for the same blends, I’m calling them crazy.

As someone who remembers when you could buy a fifth of good bourbon for $7 (ca. 1973), I think it's *all* crazy.

 

[8 Track]

No worries. Been expecting this or similar outcome for years. My existing tobacco stock will easily outlast me.

 

[ctr]

The addict always wants more. Speaking of government and taxation of course, not present company.

 

[alpster]

Having over the years hoar... err collected some very choice and many, now unobtaium blends, I am satisfied that I will never want for some excellent smoking. All things considered, I don't regret having accumilated a rather large cellar. I am sad for those just starting out as it looks like a much harder road to travel in the future.

 

[Benzadmiral]

"Shopping list . . . 4 pouches of Sir Walter Raleigh, 6 of Half & Half, 6 oz. of Edgeworth and the same of Granger . . . 2 tins of something TBD from Peterson . . . "

 

[Isaac]

Its as they say: Tobacco will never be cheaper than it is today