Tobacco Tax Just the Beginning. More New Federal Taxes Planned.


Hot on the heals of the recent increase of the federal tax on cigarettes, which went from 39¢ to $1.01 per pack, the White House is planning taxes on several other consumer items. Most non-smoking Americans turned a blind eye to the tax increase on cigarettes. It’s easy to have a holier-than-thou attitude when it comes to “sin taxes,” but the next round of taxes will hit those same pious people in the wallet.

The tobacco tax increase was touted as a way to pay for child health care, but the White House discovered that even at $1.01 per pack, the tax base, and therefore the tax revenue, was too small. More popular items were then targeted for federal taxes because there is money in numbers. The consumer items being talked about for the next round of taxes are more mainstream. If the tax increase doesn’t reduce sales, the number being bandied about by the government is $3.8 billion in new revenue.

For all you non-smokers who were so keen on the tobacco tax, I have this question, how do you feel about the proposed taxes on these items? Which one is your sin?

Item Proposed new tax or increase
Softdrinks 2¢/fl.oz.
Refined Sugar 6¢/lb.
Flour 3¢/lb.
Candy varies from 1¢ to 3¢
Gasoline 47¢/gal.
Batteries varies by size 3¢ to 12¢ per cell
Bottled water 0.5¢/fl.oz.

Manufacturers are scrambling to head off these new taxes by petitioning Congress and employing lobbyist. The Coca-Cola Corp. which produces both softdrinks and bottle water, has no less than 30 new lobbyist headed to Capital Hill.

In the end, corporations don’t pay taxes; consumers do. So hang on to your wallets Mr. and Mrs. Middle America. The government is going for the big money in little bits. The White House is hoping you don’t notice a few cents here and there. Plan your budgets accordingly because the plans you had for your tax refund (which is your money to start with) just changed.

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14 Comments

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  1. I switched to a pipe. I hope it helps me to quit tobacco all together.

    Why should those CHIP kids be healthier than me….

  2. How about a tax on all those prescription drugs the so called “health conscious” are consuming daily. I have been a smoker for thirty four years and haven’t been to a doctor for the last twenty seven years yet my taxes continue to rise because of the “health burden” that smokers put on the system. I would gladly challenge ANY person out there on the grounds of health care costs that most people cost the system more in one year than I have in my whole life. The burden on the system is hypochondria, fear and greed. While we are at it lets tax people by their weight because of its links to heart disease and diabetes. Lets tax people that are fair skinned because of the skin cancer risks. Lets tax women because they get the majority of the breast cancer costs. Lets tax the lazy because their sedentary lifestyle leads to poor health. Taxing has never cured anything and by now you should be able to see its not about curing anything, its about greed disguised as a noble cause.

  3. Tamara Waters April 1, 2009 — 06:48

    Unbelievable! Oh wait, yeah, I do believe it. That’s why I didn’t vote for him. If I had a mean bone in my body I’d be saying “told ya so.” Great piece Barefoot.

  4. really? I’m calling my Congressman right now!

  5. I went to the store this morning, totally forgetting about the tax increase on smokes. Be glad you don’t live in Arkansas, as a fifty-two cent tax was slapped on tobbacco products earlier in the year. I have struggled with trying to quit smoking for years. It’s a horrible addiction, worse than Heroin or Meth. I guess if it takes pricing tabbacco into abyssamal depths where I can’t afford them then so be it. This does not mean I will take up drugs. I am not surprised that the government would tax other consumer products, that’s what they do. It just better not go into a CEO’s wallet.

  6. We figured they’d tax other stuff once they got started. In for an inch, in for a mile, so to speak.

    My hubby is trying to quit smoking, cause we just can’t afford it anymore! He’s on day four!

  7. This administration is going to tax every aspect of our lives. I remember Jim Florio, NJ gov circa 1990, wanting to do a similar NJ state tax on certain goods, the most infamous being a toilet paper tax.

    My grandfather told me the citizens of NJ were so outraged, some even sent Florio their used TP to express their disgust in the most disgusting way they could!

    Even as recent as 2000, when REPUBLICAN Tn gov. Don Sundquist tried several times to shove a state Income tax down Tennessee’s collective throats, a massive, angry crowd thronged the capitol building at midnight. The news had leaked out about the late-night attempt to shove this highly unpopular tax through while Tennessee slept!

    Yeah, that was back when people had balls! Now it seems the national attitude is that high taxes are okay, as long as the government ‘bails us out’ and kisses our boo-boos and makes everything safe and perfect forever. It really IS all about ideology, isn’t it?

  8. OK. This had a good run. Check you calendars guys and dolls. See you next year.

  9. To his supporters, Obama was going to change the US. I wonder if they knew that change really meant cha-ching.

  10. Dude. You want government, you got two choices. Shut up and pay your taxes, or borrow it from the Chinese and let your kids pay it back. It’s simple arithmetic.

  11. Cathy A Montville April 9, 2009 — 07:12

    Welcome to our world in Massachusetts! Our governor is trying to apply a six tax to these very items you speak of. How can we pay 50.5 tax on every gallon of gas? Governor Patrick is friends with Obama so perhaps he got the ideas from him. Very scary proposals to push in a tanked out economy! Glad I read this, Randy!

  12. Cathy A Montville April 9, 2009 — 07:13

    That is suppose to read “sin” tax….sorry!

  13. Good information. Lucky me I ran acrlss your blog by chance (stumbleupon).
    I’ve saved it for later!

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