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How Taxes Affect the Tobacco Industry

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  • Description

    FBN’s Robert Gray reports from Lone Wolf on how taxes affect the cost of tobacco products.

  • Duration 2:33
  • Date

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California rob what.

Hey -- thanks so much again hello this week took a look at just how much taxes play into the price per pack of cigarettes it varies widely and wildly across the nation take a look at the graphic and we can show you a New York State more than 50%.

-- what you pay for a pack of cigarettes for the ten bucks and change.

Goes to taxes and in the most of it is the state taxes that's -- -- vary so much the dollar -- -- is across the board California.

Five bucks and change for a pack of cigarettes in Virginia like just about 29%.

Of what you pay for a pack of cigarettes is due to taxes -- we are at the lone wolf cigar company.

And we're joined by David -- he is the.

Our thanks so much for joining us here in a horse one wolf coming from one wolf what quake struck north to generally see where the founders those guys ever stop by and I -- this -- if but they come down now and again but they're a little busy in their own lives.

I try to maintain day to day operations yeah well David yeah we talked a little bit about taxes -- on cigarettes are also very high on cigars as well.

How difficult is it operating it's not -- or in the tobacco industry particularly in a state like California that.

Quite frankly doesn't have a tobacco infrastructure and support in the state capital like say -- south.

-- very difficult to operate in the tobacco field just because you spent a lot of your your time in the back room with your CPA bookkeeper and attorneys trying to remain compliant and that's big challenge for.

Time it's been challenged financially I would do -- little bit more expansion.

If I could I would hires more people probably create more jobs but enough to put so much energy into compliance that I -- also talk about you know that this 30%.

On the wholesale prices of cigars is in taxes.

How could this state possibly do something better you say by maybe not raising taxes as much -- -- to get more money out of well I think that if you regulated to so this cigars separately than cigarettes and you actually put a dollar amount for a cap on the cigar.

That would be very helpful as they've done in Oregon and Connecticut very effectively even raising revenues.

And -- does me -- send -- back to you you know David here tells me that.

He's got to have a fifty dollar David off cigar in his pocket here in thousand dollar lighters and you say -- things are still selling even announce a sluggish economic rebound.

They sure are a lot of them we're going to -- national clients.

However -- -- off cigars you know they can range up to forty dollars and DuPont lighter -- be up to a thousand dollars plus.

We still seem to sell these things these markets all right well actually I guess what as some people are taking a cigar smoking pretty seriously why now yeah yeah the rich get richer -- -- -- one of those my --

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