Feb 23, 2009

Michigan Tobacco Tax Going Up

When you cant figure out what to do to balance a budget, just tax something. That's Jennifer Granholms plan and why I am happy we have term limits. This lady has been a disgrace. Tax, Tax, Tax, that is all she knows how to do.

She has called for doubling the state tax on loose tobacco, cigars and snuff to help balance next year's state budget. That's on top of whopping increases in federal tobacco taxes -- including those for manufactured cigarettes -- that take effect April 1 to pay for expanding health insurance for low-income children, known as SCHIP.

The biggest federal tax increase hits roll-your-own tobacco, rising from $1.10 per pound to $24.78 per pound. Store-bought cigarette taxes are headed from 39 cents per pack to $1.01 per pack.

If approved by the Legislature, state taxes on non-cigarette tobacco items would jump from 32% of wholesale price to 64% next year. Combined with the new federal tax, the average price of a one-pound bag of popular Gambler tobacco would skyrocket from $19 to $70 in Michigan.

You can not depend on smokers. This will only kill the little tobacco shops. More and more people will be heading online to purchase their product which will make only large companies succeed. Good job Granholm! You are sending even more people out of Michigan.

6 comments:

Anonymous said...

well the last time the smokers were taxed a few people I know started ordering them from kentucky for about 1.15 a pack shipped even if it is not quite legal im sure thinking more about it. thanks granholm guess what I have a good job with a good paycheck and you still made me think michigan is not where my future should be anymore.
attention smokers berkley.com
now what

Anonymous said...

If you're going to order from out of state, DO NOT use a MasterCard to pay for your purchase. I was doing this a few years ago when the State of Michigan asked credit card issuers to release records of tabacco sales their clients had made. MasterCard is the only company that agreed and I got hit with a $500 tax/fine from the state. To my knowledge, Visa refused.

Anonymous said...

I am sick of the taxes on cigarettes and liquor. I am going to start using the electronic cigarette. Its way better for you and a whole lot cheaper and you can use them anywhere. I tried one a friend had and it had the same effect of smoking a regular cigarette. Becareful buying them online, a guy at work got hit with a 5,000 dollar bill from the governement. they actually took it out of his checking account.

Anonymous said...

Granholm has no common sence. All raising the tax on tobacco products does is puts small party stores out of business. Since raising the liquor tax, people are buying booze out of state. Now with this small stores that depend on liquor and tobacco sales are going to be screwed once again... Good job Granholm. Another reason why you are the worst mistake ever made by the michigan voters.

Anonymous said...

WE ARE IN A RESESSION WTF DO U EXPECT IN ANOTHER 10 YEARS IT WILL BE 20 DOLLARS FOR A LOAF OF BREAD

James said...

Hey, I agree with you on this one. That's why I've made it a part of my State Senate campaign to introduce legislation that will eliminate the tax.

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