The Cigarette Tax...

The cigarette tax in Florida went into affect this week. Combined with the earlier federal tax increase, that brings us close to an additional $2.00 a pack on smokes. Mind you, there was no additional tax placed on cigars.

It's forcing me to quit. With the price per pack now at a state average of $5.50 it's just becoming too cost prohibitive.

Here's the thing that's always bothered me about these tobacco tax hikes. If the government is out to get the big tobacco companies so desperately, why do the tobacco companies continue to support poilticians? On the surface it seems like paying someone to shoot you in the foot.

With the addition of tobacco to the FDAs portfolio, it really seems as if the government is looking out for our best interests. They'll be able to closely monitor the nicotine levels in the cigarettes and keep the addictive properties down to a minimum.

The tax hikes are also a measure taken to encourage people to quit. This is a no-brainer. If they cost more, you're less likely to buy them. Especially people with low incomes...who ironically make up the majority of smokers.

Why is it, then, that the elected officials talk about the revenue they expect to generate as a result of the tax increases? Governor Crist seems really excited about how much money Florida stands to rake in as a result of the increase.

If everyone is being encouraged to quit, how does the government expect to generate any additional revenue?

That's when it all started making sense.

You see, the FDA is so effective at their job that I have heard of no less than three food recalls this week. In addition, there's a lot of hub-bub about acetaminophen and it's destructive capabilities to the liver.
Remember how safe Tylenol was supposed to be?

With the FDA now looking over big tobacco's shoulder (and into its wallets), it's a fairly safe bet that nicotine levels will continue to increase in the future, making the product even more addictive. A more addictive product garners a more loyal following who will pay any price to get their hands on that product.

The government then raises taxes on this highly addictive product under the guise of looking out for your best interests, but knowing full well that people...even extremely poor people...will continue to buy the product that they are so addicted to.

The tobacco companies are then "forced" to raise their prices to cover the costs of these new taxes.

More profits for the tobacco companies, more political contributions to the politicians and more government employees to oversee this fiasco.

I saw a similar transition amongst cocaine dealers back in the 1980's. Their product wasn't pulling in quite enough capital to satisfy everyone involved, so they made a more addictive product...Crack.

It seems as if our politicians are taking lessons from their dealers now.