National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.
Issue link: https://read.dmtmag.com/i/131382
NATONEWS Obama and Senate Seek Higher Cigarette and Tobacco Taxes A second round of federal tax increases proposed J 2009, President Obama signed into law the single largest increase in the federal cigarette and tobacco tax rates in the history of the country. At that time, the federal cigarette tax was increased from $.39 to $1.01 per pack and numerous federal taxes on roll your own tobacco, cigars, smokeless tobacco and pipe tobacco were also raised. According to a 2012 Federal Trade Commission report on cigarette sales in 2009 and 2010, cigarette sales declined 10 percent nationwide in 2009, the year the federal tax increase went into effect, followed by another 3 percent decrease in cigarette sales in 2010. ust four years ago in Obama Tax Increases In April, the Obama administration announced that a second round of federal cigarette and tobacco tax increases are being proposed to fund the expansion of preschool programs nationwide for four year olds in low to moderate income famThomas Briant is executive director of the National ilies. The actual tax rate increases include Association of Tobacco a $.94 per pack cigarette tax increase from Outlets. NATO's toll-free number is (866) 869-8888 the current $1.01 per pack to $1.95 per and the association's Web pack and a 93 percent increase in all other site address is www.natocentral.org. tobacco product tax rates. It is ironic that the president's proposal would seek to increase cigarette and tobacco taxes that fall more heavily on lower income Americans who have higher smoking rates to fund expanded access to pre-school programs for all four year old children from families with low to moderate incomes. In fact, the Centers for Disease control reports that 29 percent of all smokers have incomes below the federal poverty level. While the president's plan to increase in the cigarette and tobacco tax rates is estimated to raise $78 billion over a ten-year period, the additional revenue expected to be collected peaks in 2015 with $9.8 billion projected and then declines each year after that until 2023 when $6 billion is estimated to be collected. However, the costs associated with the preschool program keep increasing virtually every year so that by 2019, the costs of the program exceed the tax revenue generated to pay for the program. www.npnweb.com n NPN Magazine In May, the Obama administration announced that the president would conduct a series of oneday trips to various parts of the country to bring attention to his proposals for an increase in the minimum wage and his budget plan to raise cigarette and tobacco tax rates to pay for the expansion of the preschool program. U.S. Senate Bill Shortly after President Obama released his budget proposal that included the cigarette and tobacco tax increases, four U.S. Senators introduced Senate Bill Number 826, which would increase the cigarette tax by $.94 per pack for a new federal rate of $1.95 per pack and impose tax parity by establishing the federal excise tax on other tobacco products at the following rates: Little Cigars: Pipe Tobacco: RYO Tobacco: Chewing Tobacco: Moist Snuff: Snus/Single Use Units: $1.95 per pack $49.55 per pound $49.55 per pound $10.37 per pound $25.91 per pound 9.75 cents per pouch or unit Language in the Senate bill would also tax at a level equivalent to the federal tax on cigarettes on an estimated per use basis any other product that has been determined by the FDA to be a tobacco product based on the agency's authority under the Family Smoking Prevention and Tobacco Control Act. This Senate bill would also require tobacco manufacturers to affix a "unique identification marking" to each package of tobacco products before the product is released for sale in the United States. This "unique identification marking" must include a unique serial number or tracking code to allow the product to be tracked and traced by federal authorities. This marking would also need to contain overt security features for public authentication and covert security law features with encrypted identification information. The purpose of the track and trace requirements under the legislation is to curb the illegal trafficking of cigarettes and tobacco products. MAY/JUNE 2013 11