S-CHIP Required Reading

Sailchaser · 02-11-2009, 05:59 AM

Some good info from everyone here ,bottom line is they are going to increase the price of sticks no matter what, The sad part is that we will contiune to buy and they (goverment) will see that we do and add another tax on in 6 months to pay for some other program they come up with, It sucks but the USA is still one of the best places on earth to live ,
Happy Smoking

Buena Fortuna · 02-12-2009, 05:54 AM

Quote:

Originally Posted by Sailchaser

Some good info from everyone here ,bottom line is they are going to increase the price of sticks no matter what, The sad part is that we will contiune to buy and they (goverment) will see that we do and add another tax on in 6 months to pay for some other program they come up with, It sucks but the USA is still one of the best places on earth to live ,
Happy Smoking

Who's going to use their stimulus funds to off set the S-CHIP increase??? Sounds like a plan to me

TheRiddick · 02-12-2009, 12:46 PM

Quote:

Originally Posted by Buena Fortuna

Who's going to use their stimulus funds to off set the S-CHIP increase??? Sounds like a plan to me

I am sure we'll see a run on cigars and RYO in the next month or so, right up to the March 30th cutoff. The only problem I see is that we'll end up with flat sales for the products after that point, for months to come, and that will lead to either some jobs lost (best case scenario) or closures of some places altogether and many more jobs lost.

I am watching CA budget impasse right now, the latest is that they will create a new tax on ALL alcoholic beverages, at $0.05 per drink. Not much, it seems, but I am not sure yet where that will start, if it starts at the production end, then it will escalate upwards eventually and that nickel becomes much more by the time you down that drink.

And as is, CA passed this "SCHIP like" tax on tobacco about 10 years ago, we will now pay on top of that. I would love to know where the money has gone for the past 10 years, if it hasn't worked in CA as intended, then why does Hussein's team believe it will work for the entire country? Anyone hear from Rob Reiner since he was able to enact this stupidity in CA and can he provide real time numbers for anyone to look at and see if the program actually works?

I'll fire off a few emails to Rush and O'Reilly and see if they want to pick this up.

macpappy · 02-18-2009, 10:51 AM

I just visited my local B&M and had a chat with one of the owners. She pulled out a letter she received providing information about the tax. Basically the retailer will pay the tax when they buy cigars starting on April 1. She buys directly from the manufacturer and not through a wholesaler. According the the U.S. manufacturers she has talked to, they will pay the SCHIP and add the 40¢ per cigar to the box price. On a box of 20, that comes to $8.00. That is the only time the tax will be added to the wholesale cost of the cigars. The B&M will then raise its prices to compensate for the $8.00. According to the owner, they are only going to raise their prices by the 40¢ per cigar.

They haven't figured out how this will work with foreign manufacturers. Some seem to think that the B&M will buy from these manufacturers and then have to report the purchase to the government and pay the tax.

At this time, her and her husband plan to buy as much stock as they can afford prior to April 1 and delay any price increases to the customer as long as possible.

On another note, she said that at least one manufacturer is considering reducing the price of the cigars themselves and increasing the same amount for packaging. Her example was that the manufacturer currently sales a box of cigars for $100. To help offset the cost of the tax, the manufacturer will sell the 20 cigars for $80 and charge $20 for packaging. Since the tax only applies to tobacco, this will reduce the amount of money collected on some cigars.

02-12-2009, 03:58 PM

Quote:

Originally Posted by Buena Fortuna

Who's going to use their stimulus funds to off set the S-CHIP increase??? Sounds like a plan to me

Unless I missed it there are no plans for a stimulus check like last time and I have seen nothing in the news that leads me to believe anything they have been discussing will put cash in my hands anytime soon.

Chas

Thrak · 02-12-2009, 03:59 PM

Quote:

Originally Posted by ChasDen

Unless I missed it there are no plans for a stimulus check like last time and I have seen nothing in the news that leads me to believe anything they have been discussing will put cash in my hands anytime soon.

Chas

$400 for singles, $800 for families. Cap is a salary of $75,000 a year for singles, $150k for families.

02-12-2009, 04:10 PM

Quote:

Originally Posted by Thrak

$400 for singles, $800 for families. Cap is a salary of $75,000 a year for singles, $150k for families.

Source ???

Everything I have read says no checks were even proposed in this bill.

Chas

02-11-2009, 05:59 AM	#1
Sailchaser Black Ops-SOB Join Date: Oct 2008 First Name: Chris Location: SCS,MI(Somewere Cigar Smoking) Posts: 1,735 Trading: (7)	Re: S-CHIP Required Reading Some good info from everyone here ,bottom line is they are going to increase the price of sticks no matter what, The sad part is that we will contiune to buy and they (goverment) will see that we do and add another tax on in 6 months to pay for some other program they come up with, It sucks but the USA is still one of the best places on earth to live , Happy Smoking __________________ "Sail Fast, Shoot Straight, Fish Hard and Save Time For The Important Things In Life"

02-18-2009, 10:51 AM	#4
macpappy Rider on the storm. Join Date: Oct 2008 Location: Slidell, LA Posts: 851 Trading: (0)	Re: S-CHIP Required Reading I just visited my local B&M and had a chat with one of the owners. She pulled out a letter she received providing information about the tax. Basically the retailer will pay the tax when they buy cigars starting on April 1. She buys directly from the manufacturer and not through a wholesaler. According the the U.S. manufacturers she has talked to, they will pay the SCHIP and add the 40¢ per cigar to the box price. On a box of 20, that comes to $8.00. That is the only time the tax will be added to the wholesale cost of the cigars. The B&M will then raise its prices to compensate for the $8.00. According to the owner, they are only going to raise their prices by the 40¢ per cigar. They haven't figured out how this will work with foreign manufacturers. Some seem to think that the B&M will buy from these manufacturers and then have to report the purchase to the government and pay the tax. At this time, her and her husband plan to buy as much stock as they can afford prior to April 1 and delay any price increases to the customer as long as possible. On another note, she said that at least one manufacturer is considering reducing the price of the cigars themselves and increasing the same amount for packaging. Her example was that the manufacturer currently sales a box of cigars for $100. To help offset the cost of the tax, the manufacturer will sell the 20 cigars for $80 and charge $20 for packaging. Since the tax only applies to tobacco, this will reduce the amount of money collected on some cigars. __________________ WARNING: I am a Southern White Male. I have a brain and I know how to use it.