
The federal cigarette tax increase that became a dreadful April Fools Day joke for smokers as well the state tax increase recently proposed by the Illinois Assembly members have made smokers sick and tired by trying to cope with incredible prices for their habit. Smoking a Newport in front of LeLand Hotel in Aurora, 59-year-old James Humphrey complained that it was unfair and wrong from the government to take away the only pleasure available for smokers who are mainly poor people.
Mr. Humphrey mentioned that he would not give up smoking because cigarettes formed an essential part of his love for 40 years, helping him to overcome many problems and difficulties he had during his life. He also said that paying 60 bucks for a carton of cigarettes is an absolute nonsense for him and he would probably switch rolling cigarettes by himself because it would be not so expensive.
Another old-time smoker, Andrew Hirsh, 65, who lives on Social Security, admitted that he would cut his pack-a-day habit to 5 cigarettes per day in order to cope with expenses. He said the tax increase hurt him very much as well as other people who have a fixed income. He mentioned that 50 years ago when he began smoking he bought his first pack of cigarettes for 15 cents.
The revenue collected by the 156 per cent cigarette tax hike that entered into legal force last week, would be used by federal government to fund expansion of health insurance program for uninsured children. The bad news for smokers came from Illinois Senate which members endorsed state tax increase by as much as $1 with the revenue going to general budget in order to fill the holes caused by the recession.
Meanwhile, the federal tax hike has been affecting more and more people throughout the country. The hike brought a huge impact on smokers in the first place but as well on tobacco growers and small retailers. “I have to pay for everything I sell in my store,” complained Sandy Adamson, owner of the Ace Tobacco & Groceries convenience store in Rockford. He said that he was recently noticed that he would have to pay a sales tax on liquor of 2% and $6.01 for each cigarettes carton at store’s warehouse.
Adamson admitted that cigarette sales make up 25 percent of total sales, thus, it would be very difficult for him to hold out in the business. Ace Tobacco & Groceries store owner also said that he has been a part of cigarette business for a long time and exhibited the decline in sales each time the cigarette taxes jumped, however, he confirmed that from his own experience the major part of smokers would return to buy cigarettes after they would get accustomed to new prices.
However, sales at Discount Tobacco Store went up heavily. Almost all the shelves were emptied on Friday, and the store management even had to arrange additional order shipments. LeAnn Sparks, store’s salesperson admitted that she had never seen so many customers like it was last week. She said people came from every part of the city to buy cigarettes before the new federal tax enters into effect.
“People simply emptied the shelves on March 31,” she added. “We even had to work overtime for 2 hours in order to serve all the customers. Mrs. Sparks also admitted she resorted to the services Discount tobacco store’s low prices as well as her customers by buying 15 cartons of cigars for her father and 10 cartons of Doral cigarettes for her husband.
On April Fools Day the prices for other tobacco products jumped up too. Small cigars price increased by $10 per carton, whereas roll-own tobacco is currently sold for $10 per a 6 ounce pack. American Heart Association communications manager Rose Weller stated that a combination of high taxes and difficult economic situation would bring people to inevitable decision - to stop smoking.
She said American Heart Association backs the efforts of Congress because it has been proven a long time ago that when the cost of a product raises the consumption of that product falls.
The Tax Foundation, a non-governmental organization located Washington and devoted to various tax and policy researches declared its official support for smokers after accomplishing a research, which results showed that low-income workers and deprived people form up to 65 percent of the total number of American smokers. Therefore, independent researches concluded that such a widespread and expensive program like State Children’ Health Insurance Program should not be paid by a “small, low-income, politically unpopular minority like cigarette smokers.”