Tobacco Taxes Spike – Smokers Hit
US Department of the Treasury has wielded its whip on smokers. Nicotine lovers will now have to spew more money to have a fag. According to The Children’s Health Insurance Program Reauthorization Act of 2009, the Federal excise tax on tobacco products and processed tobacco rises. On February 4, 2009 this had been signed into law. This happens to be the largest ever rise of Federal excise tax (in one attempt). The act will come into effect come Wednesday, April 1, 2009. According to this per pack there will a rise from $0.39 to $1.01.
Recession coupled with rise in tobacco should be enough to coax smokers to quit it, believe health care providers.
The excise collected will finance expansion of child health insurance, the initiative that had been signed by The President immediately after taking the office.
According to stats, one in five adults in US is addicted to tobacco leading to 193 billion USD drain from loss of working time and medical expenses. Leave alone the harms tobacco can cause on lungs and heart.
The tax hike will be the first step in the direction of anti-smoking campaign by The President and his government. The Congress is contemplating on giving additional powers to FDA so it can regulate tobacco.
The maths will be like this: Per pound of chewing tobacco, a person has to shell out 30.5 cents. The price hike will not be accepted though with a smile, but health care givers and Obama people are cheering the good move.
