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Why Do Cigarettes Cost So Much?: The increase in cigarette prices in recent years is due mainly to two things: (1) high state cigarette taxes and (2) the multibillion dollar tobacco settlement against the major cigarette manufacturers. Due to a myriad of taxes, a carton of cigarettes can cost $80 in California. You can still find cheap cigarettes if you are willing to buy brands from manufacturers who were not part of the tobacco settlement and if you buy from online wholesale retailers who do not charge high state taxes. Federal and State taxes mark up your cigarette sale. Our online cigarettes are at wholesale prices, shipped fresh from our online stores to your home. WE DO NOT SELL RUSSIAN CIGARETTES!
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Cigarette Taxes Increase 250%
"They're picking on us poor people, the ones that smoke," Jukes, a 65-year-old who has been smoking since he was a teen, said of the government. "They have been for years." The cigarette excise tax that tobacco companies must pay the federal government rose Wednesday by 61.6 cents per pack, or $6.16 per carton. The tax now comes to about $10.10 per carton, or $1.01 per pack.
But major tobacco companies began incorporating that increase into their prices to wholesalers in March. And the companies, wholesalers and retailers in many cases gave prices a boost beyond the tax increase, in part to make up for an expected drop in sales caused by the hike, some of them said.
Even before cigarette purchases became popular online, several states had planned to raise taxes in an apparent attempt to increase revenues and discourage smoking for health reasons. California, for instance, added a 50 cents-per-pack tax on cigarettes as a result of Proposition 10, passed by voters in November 1998. Alaska raised its cigarette taxes to $1 a pack in October 1997.
At the same time, consumers are spending ever-growing amounts online for everything from books to groceries--including tobacco products. Forrester Research estimates that consumers will spend $38.8 billion online this year, up from $20.2 billion last year.
The issue of taxes and jurisdiction in e-commerce has been raised repeatedly as mainstream use of the Internet has boomed. Although few pay it, many regional governments argue that consumers technically owe a use tax to their home states for each purchase they make online that originates somewhere else.
Taxes largely account for the price difference between brick-and-mortar cigarette stores and their online counterparts. In California, for example, the passage of Proposition 10 has helped push the total taxes for a pack of 20 cigarettes to 87 cents, or $8.70 per carton. Thus, a carton of cigarettes--10 packages--used to cost about $35 at convenience stores in California now costs about $80!
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