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David Stanley Ford

Experts see hope in tobacco tax hike in Oklahoma

BY CLIFTON ADCOCK and RANDY KREHBIEL - Tulsa World    Comments Comment on this article24
Published: March 22, 2009

TULSA — A nicotine fix is about to get a lot more expensive — if it hasn’t already.


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Federal taxes on tobacco products will increase substantially April 1. Revenue from the tax increase, estimated at $32.8 billion annually, will pay for an expansion of children’s health care coverage.

Smokers who roll their own cigarettes will take the hardest hit. The tax on that type of tobacco will rise from about $1.10 per pound to $24.78 per pound.

Taxes on cigarette papers and tubes also are going up — from 1 cent per 50 for papers to 3 cents, and from 2 cents per 50 for tubes to 6 cents.

Industry sources say the increases will virtually eliminate the financial advantage of rolling cigarettes instead of buying manufactured smokes.

"It’s been the least-expensive way of smoking, but it won’t be anymore,” said Mark Clymer of Ted’s Pipe Shop in Utica Square.

Name-brand cigarette smokers already effectively are paying the 62-cent-per-pack hike on their favorite smokes because the nation’s largest manufacturers, including RJ Reynolds and Phillip Morris, raised prices by as much as 75 cents per pack earlier this month.

Mathe said prices went up to help cover the manufacturer’s "floor tax” — the tax Phillip Morris will have to pay on every cigarette in its inventory on April 1.

Research suggests three-fourths of smokers want to quit. Health professionals hope the increase provides the motivation to push some into cessation programs.

Calls to the cessation hot line funded by the state’s Tobacco Settlement Trust Fund increased from an average of 300 to 500 a week to 1,100 in the second week of March, Executive Director Tracy Strater said.

"For every 10 percent increase in price, we see a 4 percent decrease in use,” Strater said. "For youth smoking, it’s a 7 percent decrease.”

Elizabeth Butler, a Tulsa psychologist whose practice includes cessation treatments, said while financial considerations can be a powerful motivator, they usually aren’t enough — alone — to get someone to give up tobacco.

"It’s a strong motivator, but it’s not the primary motivator,” Butler said. "For most people, quality of life and health are the deciding factors.”

The price increase is a double-edged sword for tribes and tribal smoke shops, said A.D. Ellis, Muscogee (Creek) Nation principal chief.

Higher prices could mean fewer smoking and fewer health problems among tribal citizens, but fewer smoking could mean a hit to revenue, Ellis said.

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David Stanley Ford





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A representative democracy was a good idea but like all other political systems, it succumbed to corruption and greed. America is no longer free. Oddly, countries with few or no guaranteed freedoms have a much higher degree of individual freedom simply because the government is not trying to control every facet of every life in the nation. George Orwell wrote was a man far ahead of his time. "Animal Farm" and "1984" turned out to be prophesy.
Phil, Yukon - Mar 25, 2009 at 8:24 am
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Tobacco,Road: You're right on that. I'll admit my desperation sometimes gets the best of me. I should research to see which is the "lesser of the two evils" so to speak. Choosing between my lungs & brain does put a bit of more weight on the topic. My brain already has troubles as I age.. No need in making it worse. Thanks for the heads up.
Brock, Oklahoma City - Mar 24, 2009 at 3:58 pm
Charles, OKC.....I have so many more reasons that I would like to see a majority of our current legislators voted out of office and this is just another one on my list......It is not naive, just an ongoing hope that my vote will count somewhere.......back to the point......I read last night (MSN) that Obama is balking on the taxation of the bonus pay-outs as it might be unconstitutional but imposing a huge tax on a specific portion of the population falls is justified and legal?......I think not.......Such hypocrisy from our elected officials does indeed warrant voting them out of office on the State and Federal level and I will continue to try.....A small red-neck statement here, Oklahoma's State Capitol and DC need a giant enema.
Sallie, Del City - Mar 24, 2009 at 10:22 am
One more, then I'm out. Floyd, you're a jack***. This isn't party specific, and any damage the defecit has suffered since Obama took office is still fallout from Bush's administration. It's going to take years to fix the mess that moron created. Also, Sally, I understand your approach but I'm afraid "voting them out of office" is purely naivete. That assumes that they don't rig elections (which they do)or that the next batch of bums is any better than the last (which they aren't). We will have to change the very model that the government is constructed on before we're going to get any different results. I personally lean towards a direct, not representative, democracy, although there would certainly be some bugs to work out of that approach as well.
Charles, Oklahoma City - Mar 24, 2009 at 10:06 am
And I agree with what many others are suggesting, although I think tobacco is a particularly lousy reason to do it: revolution. If anybody's ready to take back the control of our nation from the thieving upper-class, get the word out there and I'm on board.
Charles, Oklahoma City - Mar 24, 2009 at 9:54 am
Agreed, this is horsesh*t. Yet another in a long line of legislations to save us from ourselves, although the intent is really to jack up revenues at the expense of a group which has become unpopular enough in recent years to have become a target that no-one will leap to defend. That's okay, just wait, alcohol consumers, you're next. Overweights, you're on the list too. So our state government, who notoriously pocket the vast majority of our tax dollars at a rate unparallelled by virtually any other state, will have even more income for their drinks, prostitutes, and, yes Virginia, cigars. Somebody needs to organize another Boston Tea Party, call it the Oklahoma Tobacco Party, and finish by tarring and feathering a few dozen legislators. Perhaps that might make the point clear.
Charles, Oklahoma City - Mar 24, 2009 at 9:50 am
www.counterpunch.org www.lewrockwell.com www.infowars.com
- Mar 23, 2009 at 9:15 pm
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This is nonsense, and they will keep doing it until they are stopped. All the propaganda in the world can't mask the utter tyranny the state visits upon its citizen everyday with increasing rapidity. This is extortion at best. They raise taxes to such extremes and then use the proceeds to micromanage our lives even more. Whatever happened to the ideals of liberty and self-determination?

This nation is being fleeced by the superwealthy and the sock puppet politicians that represent no one but themselves. The entire nation, not just Oklahoma, is being forced into a neo-feudalist nightmare. Indentured servitude is no longer a thing of the past. No longer can we remain silent. No longer can we sit by complacently as they take away what is rightfully ours. No longer can we bow down to a corrupt government that only sees its citizens as something to be controlled, something to be exploited, something to be lorded over like so many sheep. No longer can we forget the realization that has roused the masses to action through so many years: our destiny rests in our own hands. They can only take our freedom if we let them.
- Mar 23, 2009 at 9:08 pm
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My brother and sister-in-law both used Chantix to quit smoking and their only side effects were dry mouth and weird dreams.....It worked for them, but goodness it is around $140.00 per month, which is indeed an incentive to quit in the first 30 days.
Sallie, Del City - Mar 23, 2009 at 8:01 pm
The sad thing is the tobacco taxes keep going through the roof, but alcohol taxes have risen very little in the last 20 years. That tells me that the health-nazis believe it's all fine & good for people destroy their health with alcohol & kill or maim tens of thousands yearly… but, by God, make sure smokers are driven out on a rail. So much for this being a legitimate ‘sin’ tax I think health-nazis must still be WAY too attached to their booze. This increase on loose leaf tobacco taxes is a 2,252.7% hike. If you don’t recall the reason for the Boston Tea party, I sure hope the Feds start doing this to Twinkies, ‘Freedom’ Fries & soda-pop soon. … idiots.
Concerned, Central Oklahoma - Mar 23, 2009 at 11:51 am
Brock,OKC, before you consider Chantix you better do some research. Chantix is very dangerous because it works in the brain. Many people that have used it, did quit smoking and didn't have any problems with the drug. But others have had bad side affects. The drug affected them mentally, they have gone off the deep end. Some of the side affects don't happen until moths after they finished the drug. Just do your homework.
UnSub, Yukon - Mar 23, 2009 at 11:01 am
it is a sad day since cigarettes are a legal product. If yu are an adult and choose to smok so be it. What about all the people who drink alcohol. We need a revolution.
Phyllis, Stigler - Mar 23, 2009 at 9:36 am
I say we need to institute state and federal excise and other taxes on every product bought, sold or traded. About 200% of the wholesale cost for every item should do, then charge sales taxes on the total after tax cost. Sooner or later, even the stupid will understand what the state and federal governments are up to.
Phil, Yukon - Mar 23, 2009 at 8:25 am
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I don't smoke but my wife buys the things and lights one up, takes a puff, throws it away and 3 minutes later does it again. With this new tax, I blame Obama. It will cost me, a non-smoker, about $7,200 per year. I believe in loving my fellow man but hating what some do. But I do not see where I must love an anti-Christ, which is what I consider Obama, and not because of his tax increases but H.R. 45 which will tax ,by permits, guns, which permits will only be good for 5 years. I bet the permits will come at a hefty price for collectors. It seems he wants to get his stimulus paid for by the poor instead of the rich. Robin Hood-he ain't. Oklahomans proved to be the smartest people in the U.S. by having the highest % of voters against the bum. He raised the national debt more in 2 months than Mr. Bush raised it in 8 years. He makes Bush look like a hero. I was just sent an E-mail of our troops cheering Bush and just a slight smattering of polite applause for Dumboma.
Floyd, Oklahoma City - Mar 22, 2009 at 1:31 pm
I find the notion of taxing the bonuses to be wrong a very intriguing position. These bonuses were given to executives in a special division of AIG in order to reward them, incentivize them, and retain their expertise. This was the special division from which ALL of the parent AIG troubles stemmed! These are the people who designed and produced and marketed all of the "toxic" assets that have brought this economic turmoil to a head. These are rewards for people who brought the global economy to a standstill. When these bonuses were known is immaterial. Who set them up is immaterial. Who agreed to them is immaterial. What is material is that arrogance, incompetence and greed are being rewarded with TAXPAYER MONEY. Taxpayers have a right to expect their money will be used morally, ethically and legally, and certainly in THE TAXPAYERS' BEST INTEREST. If AIG want's to give bonus money to these people so AIG won't lose their experience and expertise (in what I might wonder), then let AIG's STOCKHOLDERS pay for it. Not the TAXPAYER. I am aware that AIG is now 80% owned by the federal government of the U.S., which means the citizens of the U.S., of course. So, let the citizens vote. Anyone object to letting citizens vote on what happens to their money? Or is that another aspect of American life that's gone up in smoke?
Percy F., Ardmore - Mar 22, 2009 at 9:57 am
When Brad Henry dropped the sales tax on tobacco and increased the State tax, he promised that these ‘targeted’ funds would go to health care and to small business companies to help subsidize insurance premiums to pay for health care for their employees..........This fund was so lucrative that our legislators and governor took 107 million dollars of these ‘targeted’ funds to apply to the general fund for the purpose of balancing the budget.........again, so much for their concern for health care of the citizenry.
Sallie, Del City - Mar 22, 2009 at 9:11 am
Doing everything possible to raise unfair taxes based on propaganda which can eventually start another revolutionary war. Good idea... not. All taxes and government mandated fees need to be raised by the same percentage as tobacco, including ad valorem, motor vehicle licenses, sales, alcohol, fuel, toll roads, driver's licenses, permits and park fees, etc. THEN you'd see a real change. Instead of focusing on one particular group at a time, using propaganda to improperly punish them, aim at every taxpayer equally at the same time. Apparently, Americans didn't learn much from the causes of the revolutionary war and are repeating what England did to the colonies expecting different results. Sean, you need a dose of reality but you'll learn as you mature.
Phil, Yukon - Mar 22, 2009 at 9:06 am
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I agree Sallie about the "no taxation for specific groups. I have always felt this way about the raising of cig taxes. I don't smoke. But to tax those bonuses after the fact is not right. Those in the know, Obama's bunch and Dems, knew about the deal and should have stopped it.
Bob, Shattuck - Mar 22, 2009 at 9:06 am
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I posted this on another site.........our legislators speak with forked tongue.......no taxation for a specific group of bonuses for the wealthy, but this specific group (smoker's) is justified.......When this source of revenue is dried up, what will they think of next to tax? Probably we non-smokers.......It is naive to think that the State Capitol or DC has any true interest in smokers health or want them to quit......After all, the taxes paid increase the coffer.......money, money is the only issue.....ppfffttt on the continuing propaganda spewed by our state and federal government.........


"But Lucas, R-Cheyenne, joined 86 other Republicans voting against the tax on the bonuses on Thursday, saying that it would be unconstitutional to target a specific group of people and punish them with the tax code"........... Really? Targeting a “specific” group of people with a tax code is unconstitutional? Well now, Brad Henry had no problem applying a tax code to smokers and Obama is following suit. I can't think of a more “specific group of people” our State and Federal governments have placed a tax code on to increase the coffers and press a tax punishment on behavior that is not politically correct.......... Truthfully, are politicans interested in the health of citizens or more concerned in the dollars received by such a selection of a "specific" populace forced to comply with a tax code?........... A taxation on bonuses for those who make millions is wrong but taxing some old Joe making $8.00 per hour is a good thing because he/she uses tobacco is acceptable and justified?... Can anyone at the State or Federal level spell hyprocisy or hypocrit?........ I am a Republican, however, if you who represent us continue in your support and approval of the wealthy paying out huge bonuses to these men/women out of taxpayer funds, you deserve to be voted out of office at your next election. You have no shame, ethics or morality of any kind in your regards to those who put you in office. No I do not smoke, but R. Lucas you and our other reps., including my own, represent what is despicable in our State and Federal leadership. Cc: Coburn, Inhofe, Inman, and the White House.
Sallie, Del City - Mar 22, 2009 at 8:59 am
Taxes are taxes even when it is a "sin tax". Our government is trying to get every dollar they can out of every possible avenue. It is time to say ENOUGH.
Bob, Shattuck - Mar 22, 2009 at 8:57 am
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I agree with anonymous. I also think taxing needs to be related to what the tax is going to.. It keeps it together. How about taxes on cigarettes go toward helping us quit and getting us healthy again. We pay the taxes, why not let us see it. We are not criminals, we are addicted (many of us anyhow). I've been smoking since 16. I've bought cigarettes from stores since 7 or 8 with no hesitation due to the note my mom sent but still, it was too easy to buy as a kid. I've been smoking 20 years now and have tried to quit several times. The least successful methods for me are gum & those darn cheap kits that have only a rubber band & paperclip with a tip sheet on how to quit. I don't think those folks have ever smoked if they think that's gonna work for a long time, 2 packs a day smoker that was born into a smoking family. I've seen it all my life, it's a part of me so to quit is very difficult! And if you have no medical coverage it's a joke.. I've yet to find a resource willing to help you quit with something that may actually work like chantix or the patch.. but chantix is very expensive & I've tried the patch (It came closest atleast but I hear good things about Chantix. That would be my next choice for quitting).. If some organization can give me enough chantix, I'll try again! Why not?! I've wanted to quit since I was in my early 20's. I've tried cold turkey (Lord no!! Hardest thing next to having a baby.. I'd go nuts taking everyone with me)

You can google "sale tobacco seeds" minus the quotes & get a nice return of hits on the topic.

Thanks for listening to my view on the matter. Good luck to those who want to quit & good luck to those who don't. ☺ ♥
Brock, Oklahoma City - Mar 22, 2009 at 4:49 am
Its a bunch of SCHIP if you ask me and raising taxes will never get people to quit smoking! People can hardly quit when they want to! This will be just one more freedom taken away from our dwindling list of things we are free to do in this country. America, The Land of the "ALMOST" Free!
Anyway, for those of you who really want to quit check out this new e cig to help you quit smoking, or to smoke in banned areas ;) www.invisismoke.com and if you know where I can buy some tobacco seeds let me know!
- Mar 22, 2009 at 12:20 am
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