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by runamok
on Wed Feb 04, 2009 3:12 pm |
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All you MYO'ers correct me if I'm wrong on any of my numbers here.
As I understand it, the SCHIP tax increase on loose rolling tobacco is about $23.00 per pound.
I also understand that a pound is good for about 400 cigarettes (2 cartons).
That's an increase of (rounding off) $12.00 per carton.
I know the pre-made tax increase is $6.00 (rounding off again) per carton.
I'm guessing that the average MYO'er will now be spending approx. $22.00 - $24.00 per carton whereas pre-mades (in MN anyway) will now be around $50.00 per carton, certainly still much more expensive than MYO and that will hold true to greater and lesser degrees depending on what state you live in.
My point is: If all smokers switched to MYO,the smokers would still be money ahead...fairly substantially. But the Feds stand to clean up if we do. To the tune of an extra $6.00 per carton since MYO is going up $12.00 per carton versus pre-mades going up only $6.00 per carton.
I know the states would stand to lose big money but do you suppose the Feds are counting on this tax increase causing a substantial shift to MYO? |
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runamok
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by gilster
on Wed Feb 04, 2009 3:21 pm |
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Runamok - they stopped, or thought they stopped, a tax loophole.
MYO is still cheaper and not FSC
Many people are shifting to making their own because the FSC paper is toxic
Those people quitting cigarettes altogether are USELESS to government
Congress, Obama and State government needs the generous taxes from Smokers
in order for all their programs to work.
Smoke: It's the most American civic duty an American can do
Congress APPROVES of it - THEY are COUNTING on it |
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gilster
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by runamok
on Wed Feb 04, 2009 3:21 pm |
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| I didn't take the tubes into account but I think they're getting a tax increase also. Anybody know how much? |
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runamok
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by runamok
on Wed Feb 04, 2009 3:33 pm |
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gilster wrote: Runamok - they stopped, or thought they stopped, a tax loophole.
MYO is still cheaper and not FSC
Many people are shifting to making their own because the FSC paper is toxic
Those people quitting cigarettes altogether are USELESS to government
Congress, Obama and State government needs the generous taxes from Smokers
in order for all their programs to work.
Smoke: It's the most American civic duty an American can do
Congress APPROVES of it - THEY are COUNTING on it
Tell me about the FSC's! I ran out of my usual supply and smoked FSC's for about a week. Developed an all day, every day headache. Now I'm back to my usuals and....no headache. Not to mention the cardboard flavor and the burning embers falling off and the re-lighting....
I understant that MYO is still substantially cheaper than pre-mades, even with the new taxes, but the way they structured the tax increases makes me think the Feds were looking at MYO grabbing a much larger share of the market in the near future, especially with many states still discussing tacking on more new taxes of their own.
And of course, a major shift to MYO would put the states in a heluva pickle. |
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runamok
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by gilster
on Wed Feb 04, 2009 5:05 pm |
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MYO will still be cheaper for me in New England, but I'll shift to a lower priced tobacco - once my months of tobacco has run out - and if my plants don't grow correctly 
Tubes went up - but not that much
If they start putting FSC paper in tubes by law - I'll just shift to RYO - I have 2 years worth of papers kicking around the house - never threw them away [now I know why]
Check out the bill online - when in the PDF file just search tobacco and all the taxes will show up.
Runamok, start buying tobacco now, there's going to be a surge in March and many may run out. Start thinking about being self-sufficient in smoking.
When they go after alcohol next - I'll be in the Potato business.....lmao |
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gilster
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by runamok
on Wed Feb 04, 2009 6:17 pm |
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With enactment of this bill being a foregone conclusion, what's the timetable for the tax increases? Has that been determined yet?
(A quick news check reveals that it is now official) |
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runamok
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by gilster
on Wed Feb 04, 2009 9:57 pm |
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gilster
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by runamok
on Wed Feb 04, 2009 10:15 pm |
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April fool's day? How fitting.
Gilster, there's a pretty good discussion going on this at Forces tavern where I've expounded on my theory a bit. |
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runamok
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by jsidney
on Fri Feb 06, 2009 2:32 am |
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The current tax on cigarette tubes is $0.0244 per 50 tubes = $0.0976 per carton of 200 tubes.
The after SCHIP tax will be $0.0626 per 50 tubes = $0.2504 per carton of 200 tubes.
RYOrevolution says a 6 ounce can of tobacco makes about a carton of cigarettes. This equates to a ball park figure of 3 cartons per pound of bagged tobacco. So for a ball park calculation of RYO versus premade in California:
Today: $15.00 for a 6 ounce can of RYO (federal excise tax is $0.4113)
$2.50 for 200 tube carton (federal excise tax is $0.0976)
$40.00 for a carton of Marlboros (federal excise tax is $0.39 per pack = $3.90 for 10 packs)
This is $17.50 for RYO versus $40.00 for Marlboros, a saving of $22.50 per carton.
After SCHIP: $28.00 for a 6 ounce can of RYO ($15.00 plus added federal excise tax of $8.90 plus an added $4.09 for the 45% tax California adds to the excise tax. This will vary by state.)
$2.65 for 200 tube carton (federal excise tax is $0.2504)
$46.10 for a carton of Marlboros (federal excise tax is $1.00 per pack = $10.00 per carton)
This is $30.65 for RYO versus $46.10 for Marlboros, a saving of $15.45 per carton. |
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jsidney
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by jsidney
on Fri Feb 06, 2009 2:50 am |
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Inasmuch as RYO will still cost significantly less than the vile tasting FSC Marlboros, you can bet your booties that the next nasty stunt Phillip Morris will pull in collaboration with Tobacco Free Kids is to lobby your friendly congressmen to require firesafe paper in tubes and papers. So buy now and hoard.
For those of us who have saved the cigarette papers supplied in canned tobacco like American Spirit and Premier, there is a neat little machine called the "humpback cigarette roller". I have one made by Bugler in the 1950's. www.ryotobacco.com sells them for $9.95 (plus their $8.95 flat rate shipping). Roll filterless cigarettes and smoke them in a filtered holder. We might end up growing our own paper. |
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jsidney
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