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$203,000,000 in Tobacco Subsidies in 2009

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limitgov Posted: Mon, Nov 29 2010 8:22 AM

http://farm.ewg.org/progdetail.php?fips=00000&progcode=tobacco

 

Could government cut tobacco use by ending this subsidiy?

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Redmond replied on Mon, Nov 29 2010 8:46 AM

Could government cut tobacco use by ending this subsidiy?

I don't think Government should worry about the personal use of Tobacco.

In any case, the Subsidies make it appear as if the tobacco is cheaper than it is, then they get to tax the hell out of it to "Incentivize" people to quit.

The hardcore smokers pay the price - in any case they are a much maligned minority, so people see the government "Sin" tax on Cigarettes as justified.

For your own good etc. etc. Nanny State in action!

Especially with socilaised medecine, where smokers are seen to take more that their "fair" share of scarce medical resources - and therefore should pay up front through higher taxes.

What happenend to

From each according to his ability, to each according to his need?

Although I highly doubt the taxes get directed into a special account more likely they go into a general revenues slush fund that goes to whatever boondoggle the government central planners have in store for us.

In any case Middle of the road leads to socialism!

"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing" " Jean Baptiste Colbert"
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baxter replied on Mon, Nov 29 2010 9:25 AM

I can no longer afford huge cigarette taxes on top of all the other government taxes and scams.

So yeah, it's definitely possible for the government to "help" people quit smoking.

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Redmond replied on Mon, Nov 29 2010 9:45 AM

I can no longer afford huge cigarette taxes on top of all the other government taxes and scams.

Visit An Indian Reserve! $10 for 200 smokes - and they are making a profit on that!

------------------------------------------------ Read more below-------------------------------- Quotation not working...

But on reserves grown accustomed to poverty, the factories are the heart of a solidly entrenched economic powerhouse, broadly supported and responsible for new mansions, nice cars and general financial wellbeing. In a striking reflection of the complex relationship between non-native governments and First Nations, they are often allowed to operate with virtual impunity.

“I look at the tobacco industry as the basis for a diversified economy for the Six Nations,” said Bill Montour, elected chief of that community. “We want to be part of this whole idea called Canada, but we’re not going to be coerced into saying ‘Well, you’ve got to do it this way.’ ”

Edna Holyome, who owns a smoke shop at Six Nations that sells those locally made cigarettes, puts it more simply. “Tobacco,” she said, “is our natural resource.”

A National Post investigation into the underground tobacco business has also determined that:
# Some Ontario tobacco farmers are selling illegally to the aboriginal manufacturers, earning millions of black-market dollars by some accounts;
# Non-native corporations continue to sell filters, cigarette paper and other ingredients to the native plants without restriction;
# The tobacco industry employs thousands of First Nations people and has created a new class of cigarette millionaire on chronically downtrodden reserves; and
# The federal government received repeated alerts about the burgeoning, blackmarket manufacturing sector as long as seven years ago, when the business was still in its infancy. Even earlier, Mohawk leaders warned of the contraband tobacco wave before it actually started.

Priced currently at as little as $10 per bag of 200 cigarettes — compared to $88 for a carton of legitimate brands in Ontario, for instance — the aboriginal products are sold to individuals at a myriad “smoke shops” on reserves, or in bulk to distributors who peddle them on the streets of non-native communities across the country.


Read more: http://www.nationalpost.com/news/Native+made+cigarettes+bring+wealth+disapproval+reserves/3542001/story.html#ixzz16gdbkfq1
"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing" " Jean Baptiste Colbert"
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limitgov replied on Mon, Nov 29 2010 11:39 AM

Redmond,
 very interesting.  It appears the government is involved in many levels of the tobacco industry.  They give some sellers different advantages; tax it; subsidize it.  Interesting; yet all so very stupid.

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Redmond replied on Mon, Nov 29 2010 11:53 AM

 very interesting.  It appears the government is involved in many levels of the tobacco industry.  They give some sellers different advantages; tax it; subsidize it.  Interesting; yet all so very stupid.

Government does this all the time - they have one department - agriculture - subsidising tobacco farmers.

Another department - whether at federal, state, or local level taxing the products.

Another department, paying for advertising to tell you why you should not smoke.

Another department, hiring more police to combat the rise in contraband cigarettes driven by the excessive cost created by the massive government taxation.

Once a disparity between cost of production and cost of retail is great enough due to government regulations, taxes and laws is created, you have defacto prohibition.

The fact that Natives can sell 200 cigarettes for $10 and still turn a profit, means that the $88 you are paying for a carton is almost certainly due exclusively to government taxation.

Simply look at Alcohol prohibition in the 20s and 30s, and drug prohibition now.

The cost to grow something such as Marijuana, if it is grown in open air, is incredibly low.

the cost to purchase a gram from a dealer might be between $10 and $20.

You do the math.

"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing" " Jean Baptiste Colbert"
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You are talking about the incredible, astonishing, mind-boggling mish-mash of programs that cancel out each other's affect.    That is probably just about everything.  Environmentalists still haven't caught on to municipal garbage collection, sadly

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