Congressional Democrats Propose 156 Percent Cigarette Tax Hike to Pay for Children's Health Coverage

WASHINGTON — Congressional Democrats have chosen an unlikely source to pay for the bulk of their proposed $35 billion increase in children's health coverage: people with relatively little money and education.
The program expansion passed by the House and Senate last week would be financed with a 156 percent increase in the federal cigarette tax, taking it to $1 per pack from the current 39 cents. Low-income people smoke more heavily than do wealthier people in the United States, making cigarette taxes a regressive form of revenue.
Democrats, who wrote the legislation and provided most of its votes, generally portray themselves as champions of the poor. They do not dispute that the tax plan would hit poor communities disproportionately, but they say it is worth it to provide health insurance to millions of modest-income children. Full Story

'Fire-safe' cigarettes are here

New Hampshire - A new state law aimed at preventing fatal fires caused by smoking materials kicks in tomorrow.
That's when retailers and wholesalers have to start selling "fire-safe cigarettes," which are designed to go out when someone stops puffing.
New Hampshire was the fifth state to adopt a fire-safe cigarette law. And 17 additional states have now passed similar legislation, which is being promoted by the Coalition for Fire-Safe Cigarettes. Full Story

O'Malley proposes doubling cigarette tax

LANDOVER MD - Gov. Martin O'Malley said Wednesday that he wants to double the state's cigarette tax to $2 a pack, with the goals of tackling the state's looming budget deficit and providing a "down payment" on a broader expansion of health care coverage.
"Our hope is to use the proceeds first for debt relief, but then to bridge us to a more rational, compassionate and common sense system that allows us to give people the coverage up- front so they're not suffering more and costing us more," O'Malley told elderly residents at an assisted living center, where he also outlined tax breaks for seniors and low-income families. Full Story

Cigarette tax produces less than forecast

PIERRE SD - Legislators might want to strengthen the state's ability to regulate tobacco traffic, but a revenue official says he doesn't want to become "the cigarette police for the rest of the nation.' 'Revenue Secretary Paul Kinsman said Monday his department is reviewing ways to assure that the state is effectively controlling its borders to prevent unstamped cigarettes from entering South Dakota. Kinsman's staff also gave a legislative committee an early report on cigarette tax performance. Full Story - More News

Reynolds to raise cigarette prices

Reynolds American Inc.'s tobacco unit told distributors it will raise the prices of Camel, Kool and other cigarettes. The price of Camel will increase 15 cents a pack and Kool will go up 5 cents a pack effective next Monday, David Howard, a R.J. Reynolds Tobacco Co. spokesman, said Monday in an interview. The Winston-Salem, N.C.-based company has notified distributors of the new prices, he said. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Tax fight shaping up to be pricey

SALEM — Where there’s smoke, there’s going to be heat.
At least, there figures to be plenty of political friction this fall when it comes to Measure 50, a proposed cigarette tax increase that’s headed to voters in the Nov. 6 special election.
Already, the tobacco industry has committed at least $4 million to defeat the referral, which comes courtesy of the 2007 Legislature, and ads figure to flood the airwaves until the mail-in ballot deadline.
If the measure passes, it would raise cigarette taxes by 84.5 cents per pack and raise taxes on chewing tobacco and cigars. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Smoking and chewing tobacco could be banned from parks

Smoking and chewing tobacco could be banned from certain areas of county parks. The County Public Parks Department is recommending a new ordinance to restrict smoking and tobacco products in county parks. The county is taking this action after an Eyewitness News investigation. But not everyone agrees. State law already prohibits smoking within 25 feet of a park playground. After our investigation found most people were unaware of the law, the County Parks Department is recommending the law be extended to other parts of the park. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Illegal cigarette trade booming in South Africa

The trade in illicit cigarettes costs the state at least R1,4-billion in lost taxes each year, the Business Day reported on Friday. The tobacco industry says such trade is on the rise and is a result of South Africa's strict anti-tobacco laws. Tobacco Institute of South Africa CEO Francois van der Merwe said on Thursday the trade in illegal cigarettes was "frightening" and was estimated to account for about 20 percent of the total local cigarette market. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Billions in Tobacco Taxes to Fuel Expansion of Federal Health Program

The big question over reauthorization of the federal government's State Children's Health Insurance Program (SCHIP) appears to be this: $35 billion, $50 billion, or something in between?
On August 1, the U.S. House of Representatives passed a bill that would expand the program by $50 billion over five years. The Senate followed a short time later with approval of a $35 billion increase. A conference committee is expected to reach a final figure before the program expires September 30.
Funding would come from a 61 cents increase in the 39 cents per pack federal cigarette tax, putting the federal tax at $1 a pack. Federal taxes on other tobacco products also would climb. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Philip Morris ups most cigarettes 5 cents a pack

CHICAGO IL - Philip Morris USA on Wednesday in effect raised the price of Marlboro and most other brands of cigarettes it sells by 5 cents a pack.
The largest U.S. cigarette company is cutting the promotional allowances it gives wholesale distributors on Marlboro, Basic, Parliament and L&M by 50 cents a carton, or 5 cents a pack, as of Sept. 10, a company spokesman said.
It is also cutting the promotional allowance on Virginia Slims by $2 a carton, or 20 cents a pack, the spokesman said. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

First Circuit Court of Appeals Rules Against Philip Morris in 'Lights' Class Action

BOSTON MA - On Friday, August 31, 2007, the First Circuit Court of Appeals reinstated a class action lawsuit brought by Maine residents against Philip Morris by unanimously rejecting Philip Morris' argument that the claims were preempted by federal law. The case brought by Maine residents challenges the cigarette company's representations that certain brands of its cigarettes are "light" or have "lowered tar and nicotine," alleging that Philip Morris, USA, Inc., and its parent company, Altria Group, Inc., violated Maine Unfair Trade Practices laws by engaging in unfair and deceptive acts or practices. The plaintiffs allege that the so-called "light" cigarettes are deceptively designed and marketed to the public, and that a smoker consumes the same quantities of tar and nicotine from light cigarettes as from full-flavored, or "regular," ones. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Canadian kids smoke more pot than cigarettes

OTTAWA - By the time they're 14, many Canadian youth have done it all -- cigarettes, drugs and alcohol -- so a new report on substance abuse and addiction should serve as a "call to action" to change that, the organization behind the research says.
The Canadian Centre on Substance Abuse says Canadians need to pay closer attention to the facts that the average age when a child smokes a cigarette for the first time is about 12, 13 when he or she uses alcohol and gets drunk and 14 for first-time drug use. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Cigarette News: Fake cigarettes alert

NEARLY a quarter of a million counterfeit cigarettes with high levels of dangerous chemicals have been seized in Manchester in six months. They contain several times the normal levels of highly-toxic chemicals including arsenic, cadmium and lead. They were discovered by trading standards officials in outlets in Longsight, Cheetham Hill, Whalley Range, Levenshulme and on markets in Wythenshawe and Harpurhey. It is believed they have also been sold on the street. Health chiefs described the discovery as `extremely worrying' while Coun Pat Karney, described the cigarettes as `highly dangerous'. Full Story - Discount Magazine Subscriptions - Nutty Nutty News

Cigarette News: Singapore Officials Seize $61,567 Worth Of Smuggled Cigarettes

Singapore - Some 1,049 cartons of smuggled cigarettes worth $61,567 was seized at Woodlands Checkpoint, Monday early morning on board a Malaysian bus, said the Immigration and Checkpoints Authority (ICA).
The cigarettes were discovered hidden in speaker compartments and modified air conditioners of the bus. Full Story - Discount Magazine Subscriptions - Nutty Nutty News