re-tire, there is already a federal tax on tobacco products and beer.
This is in addition to the state and local taxes imposed by localities for these items. This is also in addition federal income taxes, federal taxes on firearms and ammunition, air travel, communications like telephones, life insurance policies provided by employers, lottery winnings, import duties, gasoline (18.4 cents per gallon)....
The federal tax on cigerattes is already $1.01 per pack. Obama raised the tax by .62 cents (nearly 156 percent increase) in April 2009 to fund the State Children's Health Insurance Program (S-CHIP), which was a failing government program in many states.
In addition to the state and local taxes, the federal government imposes volume taxes on distilled spirits, wine, and beer that are in addition to state alcohol taxes. This tax is based on the percentage of alcohol in the product which is an average of .05 cents per can of beer, $2.14 (at 80 proof) per bottle of alcohol and wine is about .31 cents per bottle.
Also, the Value Added Tax, if imposed like the European Union's VAT, will affect every product we purchase with some exemptions or preferential rates on basic needs such as food, medicine, and clothing.
The Value Added Tax will increase the prices and won't replace the taxes already in place. If we don't believe the producers will pass it on to consumers, we're smoking something besides tobacco.
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