Cigar Dollars and Cents
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The July 17 editorial supporting the U.S. Senate's proposed expansion of the State Children's Health Insurance Program correctly stated that cigarette taxes would increase from 39 cents to $1.
However, it neglected to note that the tax on manufacturing or importing premium cigars would increase as much as 20,412 percent, from just under 5 cents to a maximum of $10 per cigar. The effect of such an enormous tax increase would be devastating.
For example, a typical handmade cigar that is imported for $9 currently carries a federal tax of $0.04875. If this increase is imposed, the federal tax on this same cigar will be $4.6017 -- an increase of 9,339 percent!
Unlike the cigarette industry, which is controlled by huge conglomerates, the cigar industry is dominated by small, family-owned companies that have been in the business for generations. My great-grandfather founded our company in 1895, and our tobacco growers, suppliers, competitors and retailers are all small, family-owned businesses.
Such an enormous, disproportionate tax increase would be grossly unfair and would cripple the premium cigar industry and all of the family-owned small businesses that are part of it.
DREW NEWMAN
Executive Assistant to the President
J.C. Newman Cigar Co.
Tampa
