Obama Taxes the Poor

President Obama's plan to increase taxes on people earning over $250,000 annually has expanded to the everyman. Federal taxes on tobacco products will be raised across the board, including everything from Camel Lights to "roll your own" loose tobacco. Also taxed are the papers used to roll your cigarettes, chewing tobacco, pipe tobacco, and tubes used to roll filtered cigarettes.

Its widely known that cigarette taxes, similar to state lotteries, are a tax upon the poor. The Centers for Disease Control reports that one-third of lower-income adults smoke versus one-fifth of middle- and high-income earners. In addition, the Master Settlement Agreement, reached between the tobacco companies and 46 states, dealt big tobacco a $200 billion blow, 90% of which has been passed onto consumers.

It's easy for Obama to justify the new tax on the poor, because its for the children. The increased taxes are part of the "Insurance Program Reauthorization Act of 2009," which expands childrens' health insurance coverage for moderate (read 'middle') income families. Unfortunately, as consumers' buying habits change to adjust for the increased expense of smoking (I've switched to a pipe), the revenue won't meet expectations and all taxpayers will be required to foot the bill by more traditional means.

Thanks to the National Center for Policy Analysis, and Cigarette Smoker News.