Sunday, July 22, 2007

More Cigar Taxes

There was a flurry of activity in the cigar industry this week with the announcement of a 20,000% tax hike which just passed the Senate Finance Committee. The President said he will veto this bill so we may survive in the short-term; but what happens next time they try?

I was amazed at how many cigar companies were mobilized and sent out emails. I have never seen such an impressive effort by so many producers and distributors in the industry. I certainly did not see it on the state level when taxes went to 48% in New Jersey, nor do I think any Tobacconist has ever seen our vendors react so proactively. It's a shame. If they had supported and defended retailers when our taxes went up, maybe our Congressman and Senators would know better than to continue to punish this great industry. Instead, our elected officials in Washington think it is reasonable to punish the cigar industry in the same way they do cigarettes.

Retail Tobacconists are the infantry of the luxury tobacco business and they must be supplied and reinforced. The only way to preserve the luxury tobacco industry is to support Retail Tobacconists. The only way to preserve the luxury tobacco industry is to support Retail Tobacconists. The only way to preserve the luxury tobacco industry is to support Retail Tobacconists. Yes, I actually wrote that 3 times; it is worth repeating.

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