As the cigar industry braces for the fall out from the 700% tax increase on large cigars,
Many believe the effects from this increase could be devastating. The tax hike will not only effect retailers in the US but rollers, tobacco growers and manufactures throughout the Caribbean. As of yesterday the tax on large cigars will increase from 5 cents a cigar to 40 cents. Florida’s $2 billion cigar industry will no doubt be threatened, where 75% of the nation's cigar makers and distributors are based. Add in the dilapidated economy and our cigar industry may be on its last cinders.
Many believe the effects from this increase could be devastating. The tax hike will not only effect retailers in the US but rollers, tobacco growers and manufactures throughout the Caribbean. As of yesterday the tax on large cigars will increase from 5 cents a cigar to 40 cents. Florida’s $2 billion cigar industry will no doubt be threatened, where 75% of the nation's cigar makers and distributors are based. Add in the dilapidated economy and our cigar industry may be on its last cinders.
So where is all this tax money headed? The State Children’s Health Insurance Program (SCHIP) that will help 11 million low-income children. SCHIP has good intentions but like many government programs is flawed. So who do we tax, there has to be other ways to keep the program afloat. And what of the far reaching consequences, when a cigar manufacturer in Dominican Republic lays off employees and goes out of business? Who’s helping their children?
After a quick glance through numerous message boards, it seems cigar aficionados will continue to support the industry and keep on smoking, viewing the tax as a small way they can help. Let’s hope so. Cigars have never been a culprit; if anything they represent goodwill, celebration and appreciation for the finer moments in life.
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