Huge federal tax increase takes place tomorrow - WALB.com, Albany News, Weather, Sports

Huge federal tax increase takes place tomorrow

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By Karen Cohilas - bio | email

ALBANY, GA (WALB) - A huge tax hike on cigarettes, cigars and other tobacco products goes into effect Wednesday. Don't expect a last minute rush on sales, though. That's because most retailers have already risen their prices to deal with the price jump. That's the case at The Tobacco Place in Albany.

There are some huge increases. The tax on cigarettes jumps 62-cents per pack. Individual cigars will go up 40 cents, but here's the whopper, tobacco by the pound, for folks who roll their own.  A bag was about $16 last month. Now, with the additional, $23.53 tax, it will run you 39-bucks!

The tax increase will fund health care for children. It may help with the health of adults too, like Gena Bochette who says she's been trying to quit, now she has no choice. "They were high before, they're really high now." "What do you think about this huge increase?" "Time to quit." "Are you going to?" "Yeah. Have to. Can't afford it."

Interestingly, a recently released report suggests that the recession will actually lead to an increase in smoking. Higher Prices though, are likely to help many people kick the habit. Studies show that, for every 10% increase in the cost of cigarettes, smoking declines by 4% among adults and 7% among children.

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