Magna Carta News
Tuesday, February 10, 2004
Cigarettes don't pay taxes, Oklahoma Smokers have to pay them.
CIGARETTES DON’T PAY TAXES – OKLAHOMA SMOKERS DO!!
In 2001, Oklahoma smokers comprised only 28.7% (1) of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes (2) $ 59,280,703
Smokers Pay Sales Taxes (2) $ 49,395,080
Smokers Pay Tobacco Settlement Payments (3) $ 74,062,843
$182,738,626
Smokers’ Economic/Tax Profile 2001
Income (1)
Oklahoma smokers’ median household income $29,530
Oklahoma nonsmokers’ median household income $35,733
Working families pay more (1)
43.6% of Oklahoma smokers had household incomes LESS THAN $25,000.
7.4% of Oklahoma smokers had household incomes EQUAL TO or GREATER THAN $75,000.
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
Smoker excise tax/sales tax/tobacco settlement payments liability in 2002 (4)
Total avg. paid per Oklahoma smoker in excise and sales taxes $148
Cost per Oklahoma smoker for settlement payments to Oklahoma $101
Total annual payments to Oklahoma per smoker $249
Total annual payments to Oklahoma per nonsmoker $ 0
Oklahoma Smoker Facts (5)
Total smokers’ payments to Oklahoma in FY2002 were:
Nearly thee times as large as FY2001 state excise taxes on alcoholic beverages ($62 million).
Larger than FY2001 corporate net income tax revenues ($167.2 million).
Smokers taxed to death
Anyone who works for their wages by the hour knows how hard you have to work to earn a few dollars and cents. The State of Oklahoma earns15.2 million a month from smokers' excise and sales tax revenues, with the tobacco settlement money thrown in just for fun.
Shocked? That's chicken feed compared with the $3,352,320 every HOUR all government taxing authorities take from smokers nationwide.
Why is Oklahoma back with its hand out again, asking for even more? It is now to the point that some of our political leaders are acting no better than street thugs who sell illegal drugs. "They are hooked so now let's exploit them," is the prevailing attitude.
Between 1999 and 2001, Congress and the states have collected $88 billion (that's billion with a "B") from taxes and the Master Settlement Agreement. There is no doubt that state and federal governments now have a virtual monopoly on tobacco industry revenue. On average, government makes 15 times what tobacco companies do on a pack of cigarettes. Even the Mafia never had it this good.
No one should have to endure this kind of tax burden, and many smokers have said no and gone elsewhere. For instance, the state of Washington in 2001 estimated it lost almost $63 million to smokers who bought cigarettes on the Internet, from Indian smoke shops or brought them in from other states. The state still made $244.5 million.
What other group of consumers would tolerate a loaf of bread, an automobile or a toy taxed at the rate of tobacco? They wouldn't. There would be a tax revolt.
There have been several very good things proposed that tobacco tax increases would go toward that would make things better for a large number of people-smokers and non-smokers alike. The question that should be asked is why smokers alone should shoulder the burden? Fifty-eight percent of adult smokers are at low or moderate income, earning $35,000 a year or less. Why are the least able to pay called on the most to pay the bills of others?
Many states think that raising excise taxes will cut the rate of underage smokers. The problem is that underage smokers make up only about 2 percent of the market. When you do this you punish 98 people to influence two. Even this is questionable when recent studies state that the biggest influence on children smoking is parents, not government action.
Millions have been spent recently on prevention programs to keep kids from smoking with virtually no change in smoking rates. When $3,352,320 an hour off the backs of smokers is still not enough to satisfy the tax man, it is time to take a hard look at who we are really dealing with here. Government greed and attempts at population control through taxation is out of control in a major way. It is just plain financial rape.
Newspapers who printed a version of this letter:
Houston Chronicle, Atlanta Journal & Constitution, Chicago Sun-Times, Charlotte NC Observer, Grand Island Ne Independent, Huntington WV Herald-Dispatch
CIGARETTES DON’T PAY TAXES – OKLAHOMA SMOKERS DO!!
In 2001, Oklahoma smokers comprised only 28.7% (1) of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes (2) $ 59,280,703
Smokers Pay Sales Taxes (2) $ 49,395,080
Smokers Pay Tobacco Settlement Payments (3) $ 74,062,843
$182,738,626
Smokers’ Economic/Tax Profile 2001
Income (1)
Oklahoma smokers’ median household income $29,530
Oklahoma nonsmokers’ median household income $35,733
Working families pay more (1)
43.6% of Oklahoma smokers had household incomes LESS THAN $25,000.
7.4% of Oklahoma smokers had household incomes EQUAL TO or GREATER THAN $75,000.
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
Smoker excise tax/sales tax/tobacco settlement payments liability in 2002 (4)
Total avg. paid per Oklahoma smoker in excise and sales taxes $148
Cost per Oklahoma smoker for settlement payments to Oklahoma $101
Total annual payments to Oklahoma per smoker $249
Total annual payments to Oklahoma per nonsmoker $ 0
Oklahoma Smoker Facts (5)
Total smokers’ payments to Oklahoma in FY2002 were:
Nearly thee times as large as FY2001 state excise taxes on alcoholic beverages ($62 million).
Larger than FY2001 corporate net income tax revenues ($167.2 million).
Smokers taxed to death
Anyone who works for their wages by the hour knows how hard you have to work to earn a few dollars and cents. The State of Oklahoma earns15.2 million a month from smokers' excise and sales tax revenues, with the tobacco settlement money thrown in just for fun.
Shocked? That's chicken feed compared with the $3,352,320 every HOUR all government taxing authorities take from smokers nationwide.
Why is Oklahoma back with its hand out again, asking for even more? It is now to the point that some of our political leaders are acting no better than street thugs who sell illegal drugs. "They are hooked so now let's exploit them," is the prevailing attitude.
Between 1999 and 2001, Congress and the states have collected $88 billion (that's billion with a "B") from taxes and the Master Settlement Agreement. There is no doubt that state and federal governments now have a virtual monopoly on tobacco industry revenue. On average, government makes 15 times what tobacco companies do on a pack of cigarettes. Even the Mafia never had it this good.
No one should have to endure this kind of tax burden, and many smokers have said no and gone elsewhere. For instance, the state of Washington in 2001 estimated it lost almost $63 million to smokers who bought cigarettes on the Internet, from Indian smoke shops or brought them in from other states. The state still made $244.5 million.
What other group of consumers would tolerate a loaf of bread, an automobile or a toy taxed at the rate of tobacco? They wouldn't. There would be a tax revolt.
There have been several very good things proposed that tobacco tax increases would go toward that would make things better for a large number of people-smokers and non-smokers alike. The question that should be asked is why smokers alone should shoulder the burden? Fifty-eight percent of adult smokers are at low or moderate income, earning $35,000 a year or less. Why are the least able to pay called on the most to pay the bills of others?
Many states think that raising excise taxes will cut the rate of underage smokers. The problem is that underage smokers make up only about 2 percent of the market. When you do this you punish 98 people to influence two. Even this is questionable when recent studies state that the biggest influence on children smoking is parents, not government action.
Millions have been spent recently on prevention programs to keep kids from smoking with virtually no change in smoking rates. When $3,352,320 an hour off the backs of smokers is still not enough to satisfy the tax man, it is time to take a hard look at who we are really dealing with here. Government greed and attempts at population control through taxation is out of control in a major way. It is just plain financial rape.
Newspapers who printed a version of this letter:
Houston Chronicle, Atlanta Journal & Constitution, Chicago Sun-Times, Charlotte NC Observer, Grand Island Ne Independent, Huntington WV Herald-Dispatch
