Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Monday, November 2, 2009

The Tobacco Smokescreen: Distracting Bigotry



In NYC we are now fighting the prohibition of all flavored tobaccos; plus the threat of banning smoking outdoors in parks and beaches so 'children won't have to see smokers'. Meanwhile, taxation, smoking bans, and de-normalization of smokers continues to increase. Yet, we learned this year that the use of anti-depressants has doubled over the last decade and will continue to do so in the foreseeable future. Furthermore, you can walk into any convenience store, supermarket, or 'nutritional center' and buy yourself amphetamine-like drinks and diet pills, erectile aids, and five hour energy shots. Plus, I just read that the new 'hot' product on the market is caffeine laced meat!


Politicians and legislators are beating up on the tobacco industry and the people and businesses suffering the most are retail tobacconists and luxury tobacco aficionados. Yet, 'feel-good' prohibitions, taxation, and restrictions continue to be passed by local, state, and federal agencies. Meanwhile, the substantive problems of the world seem to go unaddressed. At this point, even cigarette smokers are more than paying for any societal costs associated with their pleasures, yet the government is milking them to pay for childrens' health-care - this is happening because the societal perception that cigarette smokers (or all smokers) are "filthy" or "dirty" people with a "disgusting" habit. Well, as long as our government chooses to stigmatize and punish unpopular people, I can guarantee that nothing positive or substantive will ever get done. Consumers of alcohol and fat people beware! This will not stop until we stand up and help minorities protect their choices/pleasures/freedoms, even if they are not the freedoms that we choose to exercise.

"You can only be free if I am free."
- Clarence Darrow

Wednesday, October 28, 2009

The Worst Freedom is OK



As a retail tobacconist I have paid half a dozen floor taxes and tax increases this year alone. The campaign against all smokers is in full effect around the globe while smoking bans (both indoor and outdoor), de-normalization, perpetual and unreasonable tax increases, continue to usurp our freedoms. But the hallmark of 2009 is the prohibitions that have been put into place by the FDA (banning flavored cigarettes) and now NYC banning ALL flavored tobacco; again, under the intellectually bankrupt logic that these products are 'attractive to children' - even though it is illegal to sell these products to children.

Today Dr. Michael Siegel, a famous anti-smoking advocate, wrote in his blog "the anti-smoking movement is very much a religious-like one and that it is based largely on ideology rather than science." Now we should be able to see things clearly; smokerism and the relentless taxation is not based on science, but rather bigotry. And smokers, along with other freedom loving people, have been saying for years that the health police/nanny state will come after soda pop, obese people, and alcohol soon enough. Well, soon enough is already here!!! Taxes and bans on fatty foods are becoming prevalent while European cities have started to ban happy hours!

Behaviour and pleasure control has never been about health, because happiness cannot be measured in years or numbers. As a society we must accept that cigarette smoking is the absolute worst personal freedom and then move on. It's OK; there will always be a WORST Freedom. But, the key to living in free and democratic societies is to preserve freedoms, not constantly whittle away at them. Today, smokers pay more than their fair share of the 'societal' (health care) costs associated with smoking; they are not a burden to non-smokers. So it must be time to leave them alone. Otherwise, our government is just punishing people who they do not like and that is reprehensible. At this point, it will be up to non-smokers to stand up and say "Enough Is Enough". Even the worst freedom is OK, now lets get on with our lives!

"You can only be free if I am free."
- Clarence Darrow

Thursday, October 15, 2009

Tobacco Prohibition 2.0: Banning Flavor


nyc freedom2

Today, the New York City city council voted 46 to 1 to ban/prohibit flavored tobacco products. The ban does not include Menthol or Mint, like the FDA 'Protect Your Family from Smokers' bill, and it does not ban flavored pipe tobaccos - yet.


All of this is happening in the same city where the nanny-minded mayor changed the law so he could stay for a third term in office, banned indoor smoking, and is now trying to ban outdoor smoking in parks and beaches - because 'children should not have to see smokers'.


Where are all of the infuriated people? Where are Americans who value freedom? Individual Rights? And not just the rights you use, but all individuals' rights?


Within thirty minutes of this news breaking, I have witnessed emails, facebook, and twitter messages from industry members and not one of those messages had anything to do with the usurpation of our freedoms. Topics did include: tonight's featured bottle of wine to drink at home; something about farmville; a note about splurging on a ribeye steak because it's 'hump day'; a bejeweled score; what you are watching on TV or the internet; what you are smoking; what you are wearing for Halloween; what game you are watching tonight; who you are rooting for; and something about a golf tournament.


Sadly, many NYC tobacconists did not find out about the vote until the day before; so some of us are being rail-roaded and disenfranchised by the system. But, the real problem is our own apathy and lethargy. Where is the anger? The vote was 46 to 1!


These prohibitions started with the FDA justifying a ban of cigarettes that have a 'characterizing' flavor that 'can be attractive to children'. Yet this is the most bankrupt and illogical justification because IT IS ILLEGAL TO SELL TOBACCO TO CHILDREN. So that should be the focus - stop sales of tobacco to underage children! It's not rocket science; you don't have to be a genius to figure it out. The prohibition of products that are 'attractive to children' is the most insipid legislative trend I have ever seen in my lifetime; it is as bad as McCarthyism, Racism, anti-Semitism, and any other 'ism' which is based on an ideology of hatred and bigotry.


One hundred years ago men congregated in bars, pubs, and clubs to discuss matters of the day... at the time, most of them smoked. Yet today, we are not allowed to congregate, smoke, and talk in the same place - except for the rare retail tobacconist. And now the walls are crumbling around us.... The guiding principle behind the founding of America was 'the individual pursuit of happiness'.... so it was. What is the guiding principle behind America today?


Unfortunately, the path to freedom is wrought with challenges and sacrifice. For starters, sign The Tobacconist Preservation Act, join the CRA, get Certified, and finally, get your head out of your arse and take half of the time you spend watching TV, sports, or shopping for crap, and start fighting for your freedoms. Otherwise, all that is worth living for, the simple human pleasures, will be lost.

Monday, September 15, 2008

GROW THE PIE


Grow The Pie. That's the point of TU. Its the purpose of education. It's the reason for Certification. Grow the pie, Grow the pie, Grow the pie.

Its worth repeating because the retail Tobacconist pie has been shrinking for decades. Furthermore, perpetually increasing taxes, smoking bans, mail order, and anti-smoking legislation threaten our industry more than ever. Yet, if you converted just 10% of cigarette smokers to cigars, you would practically double the size of the cigar industry (see Smoking Stats for proof). These are profound facts!

To paraphrase the Outlaw Tobacconist Genius:

'If you focus on growing the pie, your slice automatically gets bigger.'

While the luxury tobacco industry is filled with brilliant business men and women, it has been forced into self-preservation mode for decades. Companies are terrified of legislation and taxes; they hyper-focus on economies of scale, internal efficiencies, and maximizing ROI, all while margins decline, products get commoditized, and taxes increase: it's a brutal scenario.

Not surprisingly, until Tobacconist University, we were practically the only industry without formalized education and certification standards for professionals. But the challenges are far from over for us. Now, Tobacconists, manufacturers, distributors, and consumers of luxury tobacco must get involved and work together to project our credibility and preserve our future.

Stay tuned for more content on Growing the Pie.....

Friday, February 29, 2008

Cigar, Cigarette, Tobacco Taxes/Age: content preview

State
Legal Smoking Age*
TPT Tax Cigars**
Cigarette Tax/Pack***


Alabama
19
$.04 - $.405/10 Cigars
$0.425

Alaska
19
75% Wholesale
$1.800

Arizona
18
$.441 - $2.60/20 Cigars
$2.000

Arkansas
18
32% Manufacturer's Price
$0.590

California
18
46.76% Wholesale
$0.870

Colorado
18
40% Manufacturer's Price
$0.840

Connecticut
18
20% Wholesale
$1.510

Delaware
18
15% Wholesale
$0.550

Florida
18
25% Wholesale
$0.339

Georgia
18
23% Wholesale
$0.370

Hawaii
18
40% Wholesale
$1.600

Idaho
18
40% Wholesale
$0.570

Illinois
18
18% Wholesale
$0.980

Indiana
18
18% Wholesale
$0.555

Iowa
18
22% Wholesale
$0.360

Kansas
18
10% Wholesale
$0.790

Kentucky
18
7.5% Wholesale
$0.300

Louisiana
18
8% - 20% Wholesale
$0.360

Maine
18
20% Wholesale
$2.000

Maryland
18
15% Wholesale
$1.000

Massachusetts
18
30% Wholesale
$1.510

Michigan
18
32% Wholesale
$2.000

Minnesota
18
70% Wholesale
$1.230

Mississippi
18
15% Manufacturer's Price
$0.180

Missouri
18
10% Manufacturer's Price
$0.180

Montana
18
50% Wholesale
$1.700

Nebraska
18
20% Wholesale
$0.640

Nevada
18
30% Wholesale
$0.800

New Hampshire
18
19% Wholesale
$0.800

New Jersey
19
30% Wholesale
$2.575

New Mexico
18
25% Product Value
$0.910

New York
18
37% Wholesale
$1.500

North Carolina
18
3% Wholesale
$0.350

North Dakota
18
28% Wholesale
$0.440

Ohio
18
17% Wholesale
$1.250

Oklahoma
18
$.36 - $1.20/10 cigars
$1.030

Oregon
18
65% Wholesale
$1.180

Pennsylvania
18
n/a
$1.350

Rhode Island
18
40% Wholesale
$2.460

South Carolina
18
5% Wholesale
$0.070

South Dakota
18
10% Wholesale
$0.530

Tennessee
18
6.6% Wholesale
$0.200

Texas

18
$.01 - $.15/10 Cigars
$1.410

Utah
19
35% Manufacturer's Price
$0.695

Vermont
18
41% Manufacturer's Price
$1.790

Virginia
18
10% Wholesale
$0.300

Washington
18
75% Wholesale
$2.025

West Virginia
18
7% Wholesale
$0.550

Wisconsin
18
25% Manufaturer's Price
$0.770

Wyoming
18
20% Wholesale
$0.600

Washington, DC
18
12% Gross Reciepts
$1.00




* www.wecard.org/oltusers/wc_slsc_otl.html
** www.taxadmin.org/fta/rate/otp.html
*** www.taxadmin.org/fta/rate/cigarett.html

Tuesday, October 16, 2007

Planning A Future (part I)

Judging from this picture (taken in Disney World) my mother recently sent me, I was a young aspiring Tobacconist as early as the 1970s. But it wasn't until the 1990s that I started fighting against the first wave of smoking bans in Princeton, NJ. Like the rest of those battles throughout the country, we eventually lost. Just like we lost the battle against ever increasing cigarette and cigar taxes as well. I can count a handful of last minute tax increases which were followed by letters to my retail company telling us we must pay 'x' amount of floor tax on whatever arbitrary date the legislators picked. Could this ever happen to Microsoft or GE? I doubt it. But they say small business is the heart of America...

I can't imagine any other industry having to deal with such unpredictable and debilitating legislation. But retail Tobacconists have persevered around the country. Somehow, we have weathered each of these storms as well as the internet/mail-order age and not disappeared off the face of the earth. It seems miraculous, and I don't know that this would be possible in any other industry! We are lucky to have loyal and passionate customers. Unfortunately, we do not have enough loyal and happy customers to effect serious taxation and policy change at the state or federal level. This is not because we are not a morally, intellectually, or politically righteous group, but rather because of the hysterical and reactionary nature of the times we live in. I call it a "Shock & Awe Society". Eventually, I believe we will be able to undo much of the hysterical legislation we have had imposed on us; after all, nothing is permanent and eventually we will all have to agree to respect each other and live together, both smokers and non, big and little business, and politicians and civilians. In our society there must be room for all perspectives and individual freedoms. At least, these are my hopes and dreams...

On Thursday, Oct. 18th, we will see if we have to face yet another repressive and life-threatening tax hike. I was going to write this after Thursday, but I realized it doesn't matter when I write it. Tobacconist University will continue to move forward no matter what the S-CHIP fiasco turns out to be, just as I will move forward with my retail company, no matter the outcome. I decided long ago to stick with the ship, and go down with it if necessary. My worst case scenario ambition is to be the last Tobacconist standing. Perhaps I am an idiot. But I would like to think that I am a man of conviction. I would like to think I fight for what I believe in, and in this case that is "Preserving Luxury Tobacco for Generations to Come". And above all, I believe in leaving the world a better place than when I found it.

It was past midnight this Saturday morning and I was in the shop with a few Tobacconists and a famous cigar maker. I was talking about the saga and strife that retail Tobacconists have suffered through, and our lack of PROACTIVE help and solutions. I found myself getting very emotional, another few seconds and my eyes would have teared up. I was talking about a future for Tobacconists. We may be the most challenged industry on the planet and it is a terrifying landscape. Frankly, I think we get very little help, and the first time I have ever seen the whole industry rally against a tax was when S-CHIP was announced; that is the first and only time I have ever seen cigar makers rally together to fight a tax or any anti-tobacco legislation. I suppose it is darkest before dawn.... so maybe they are ready to wake from their slumber. But for many retailers, it may be too late; and this probably suits the mail order companies just fine.

Recently I learned that one of the owners of the largest mail-order cigar businesses in the world doesn't even smoke cigars. When he purchased the company, decades ago, someone told him it would cloud his 'Business Judgement'. So he never smoked, and over the years he grew his company into a powerhouse brand, which I will not mention here. This mentality and lack of honor and passion for our products is part of the problem. This is why our industry has had its head buried in the sand for years, while hiding behind 'Big-Tobacco', waiting for them to do something... But 'Big-Tobacco' has no credibility, nor should they. Instead, they focus on their profit and loss statements, quarterly dividends, and growing in the 2nd and 3rd world. If you've owned their stock over the last decade, you have done very well.... congratulations. But during that time, Tobacconists have suffered a great deal, and consumers are losing their rights and places to smoke.

to be continued...

Monday, July 23, 2007

Up In Smoke? part 2

I spent a couple of hours on the phone today talking to retailers, Tobacconists (both Certified & Not), and some high profile industry fellows. It was both enlightening and invigorating. This new federal tobacco tax ambush has rallied the industry in an unprecedented way. For the first time ever, manufacturers, distributors, and retailers can all get on one page. This is a fight for our survival and no one can disagree with that.

My hope is that professional Tobacconists will unite under the umbrella of our shared profession. While manufacturers and distributors must lead the fight against the draconian tax laws and repression, Tobacconists are the backbone and infantry of this business. Tobacconists are the public face of the luxury tobacco industry and we must be ready and willing to project our credibility. We are honorable professionals selling exquisite luxury products which enhance the value and quality of human life. We are honorable professionals selling exquisite luxury products which enhance the value and quality of human life. (Yes I wrote that twice.) Keep saying it and maybe it will start to sink in.

I think that this is just the beginning of the long road back to the America I love and cherish. You can only kick a puppy so many times before it fights back. Perhaps we have hit our breaking point.

Up In Smoke? part 1


Today was a strange Monday, to say the least. We made the front page of the world renowned Trenton Times, for all of the wrong reasons, as usual. Once again, A Little Taste of Cuba is the poster-child for beleaguered Tobacconists. Why can't someone do an article on Tobacconists for being world-class retailers or bastions of freedom in a shrinking landscape? Frankly, I am grateful that someone has taken notice that the newly proposed federal tobacco tax increase will do more damage than good. I hope this is just the beginning.
Some highlights in our manager's own words:
- "The tax can be so severe that it will backfire"
- 'It is unfair to tie the federal program to a particular group'
And one of our customers put it best:
- "I love the children", but "They can do that because there's not a lot of people who smoke cigars" - obviously he opposes...
And another retailer said:
- "It's a free country, why do they focus on just smokers?"

Tuesday, June 12, 2007

Legislating A New Low

The Feel-Good laws have reached a new height of absurdity here in New Jersey. One of the latest bills to be submitted to the legislature attempts to make flavored tobacco products illegal. The revised version limits the new law to cigarettes, for now.

The so-called "logic" behind this bill is that delicious flavorings like chocolate and fruits make tobacco products attractive to children. The super-geniuses in our legislature have decided that they must pass a law making flavored tobacco illegal. Of course it is illegal to sell tobacco products to children, so this ridiculous law makes no sense; unless you are "just blowing smoke" and pretending to actually care about 'public health', children, or whatever else may get you re-elected. Is alcohol next?

Professional Disclaimer: Professional Tobacconists and moral professionals go to great lengths to protect children and abide by legal age limits. The NJ legal tobacco smoking age is 19.

Personal Disclaimer: I personally do not favor tobacco with any additives or flavorings. But I fully support any adult who does.

Why would you pass a law restricting choice, commerce, freedom, and taste to protect a class of people that are already protected? Is that American? Is that reasonable? Does it make any sense?

The sponsors of this bill and any legislator voting to support it have reached a new low. I hope that they stop wasting our time and money on these empty, politically self-serving laws. The only thing worse than wasting our time and money is what they might have accomplished if they actually focused on something substantive. History will not judge them or their hysterical compulsions favorably. Where are the great thinkers, minds, and statesmen of our time? Certainly not in New Jersey.

And ohhhhh , the hypocrisy!!! They will allow menthol and mint flavored cigarettes. Why? you may ask. Probably because if they don't, the full force of the cigarette tobacco lobby will come down upon them. By limiting this new law to 'other' flavorings, NJ legislators are avoiding infringing on a massive profit vehicle for the major cigarette companies. Ultimately, only the smaller companies will be effected. Sadly, the most moderate and healthy consumers will be the ones hurt: The majority of people who smoke cherry, chocolate, vanilla, rose, or other specialty cigarettes are usually infrequent, once a month, or once a week smokers. People who occasionally want to have a premium cigarette ( healthy smokers), are having their rights usurped. And, as usual, the the little guy, with the little voice suffers. Bit by bit, this is the erosion of freedom and democracy.

Check it out: http://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=S1400

"The Senate Health, Human Services and Senior Citizens Committee reports favorably and with amendments Senate Bill No. 1400.
As amended, this bill prohibits the sale of certain flavored cigarettes in New Jersey.
The bill prohibits selling or furnishing to a person a cigarette made of tobacco, or any component thereof, which contains a natural or artificial constituent or additive that causes the cigarette or any smoke emanating from the cigarette to have a characterizing flavor that is attractive to youth.
Specifically, the prohibition applies to cigarettes with characterizing flavors other than tobacco or menthol, such that the cigarette or any smoke emanating from that product imparts a distinguishable flavor, taste or aroma prior to or during consumption, including, but not limited to, any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb or spice flavoring; ...."


"According to public health experts, the existence of these products increases the incidence of tobacco use among children;
c The earlier a person begins using tobacco, the more likely the person will become addicted to tobacco products and continue to smoke throughout that person's life;
d. As a result, flavored 1[tobacco products] cigarettes1 lead to increased tobacco use and addiction, higher health care costs, and a greater incidence of smoking-related illness and death; and
e. Therefore, flavored cigarettes 1[and other tobacco products]1 pose a significant threat to the health of the general public..."