PROMISES, PROMISES: Obama tax pledge up in smoke

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WASHINGTON — One of President Barack Obama's campaign pledges on taxes went up in puffs of smoke Wednesday.

The largest increase in tobacco taxes took effect despite Obama's promise not to raise taxes of any kind on families earning under $250,000 or individuals under $200,000.

This is one tax that disproportionately affects the poor, who are more likely to smoke than the rich.

To be sure, Obama's tax promises in last year's campaign were most often made in the context of income taxes. Not always.

"I can make a firm pledge," he said in Dover, N.H., on Sept. 12. "Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

He repeatedly vowed "you will not see any of your taxes increase one single dime."

Now in office, Obama, who stopped smoking but has admitted he slips now and then, signed a law raising the tobacco tax 62 cents on a pack of cigarettes, to $1.01. Other tobacco products saw saw similar or much steeper increases.

The extra money will be used to finance a major expansion of health insurance for children. That represents a step toward achieving another promise, to make sure all kids are covered.

Obama said in the campaign that Americans could have both — a broad boost in affordable health insurance for the nation without raising taxes on anyone but the rich.

His detailed campaign plan stated that his proposed improvement in health insurance and health technology "is more than covered" by raising taxes on the wealthy alone. It was not based on raising the tobacco tax.

The White House contends Obama's campaign pledge left room for measures such as the one financing children's health insurance.

"The president's position throughout the campaign was that he would not raise income or payroll taxes on families making less than $250,000, and that's a promise he has kept," said White House spokesman Reid H. Cherlin. "In this case, he supported a public health measure that will extend health coverage to 4 million children who are currently uninsured."

In some instances during the campaign, Obama was plainly talking about income, payroll and investment taxes, even if he did not say so.

Other times, his point appeared to be that heavier taxation of any sort on average Americans is the wrong prescription in tough times.

"Listen now," he said in his widely watched nomination acceptance speech, "I will cut taxes — cut taxes — for 95 percent of all working families, because, in an economy like this, the last thing we should do is raise taxes on the middle class."

An unequivocal "any tax" pledge also was heard in the vice presidential debate, another prominent forum.

"No one making less than $250,000 under Barack Obama's plan will see one single penny of their tax raised," Joe Biden said, "whether it's their capital gains tax, their income tax, investment tax, any tax."

The Democratic campaign used such statements to counter Republican assertions that Obama would raise taxes in a multitude of direct and indirect ways, recalled Kathleen Hall Jamieson, director of the Annenberg Public Policy Center at the University of Pennsylvania.

"I think a reasonable person would have concluded that Senator Obama had made a 'no new taxes' pledge to every couple or family making less than $250,000," she said.

Jamieson noted GOP ads that claimed Obama would raise taxes on electricity and home heating oil. "They rebutted both with the $250,000 claim," she said of the Obama campaign, "so they did extend the rebuttal beyond income and payroll."

Government and private research has found that smoking rates are higher among people of low income.

A Gallup survey of 75,000 people last year fleshed out that conclusion. It found that 34 percent of respondents earning $6,000 to $12,000 were smokers, and the smoking rate consistently declined among people of higher income. Only 13 percent of people earning $90,000 or more were smokers.

Federal or state governments often turn for extra tax dollars to the one in five Americans who smoke, and many states already hit tobacco users this year. So did the tobacco companies, which raised the price on many brands by more than 70 cents a pack.

The latest increase in the federal tax is by far the largest since its introduction in 1951, when it was 8 cents a pack. It's gone up six times since, each time by no more than a dime, until now.

Apart from the tax haul, public health advocates argue that squeezing smokers will help some to quit and persuade young people not to start.

But it was a debate the country didn't have in a presidential campaign that swore off higher taxation.

___

On the Net:

Gallup study: http://tinyurl.com/9u9mbf

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{"commentId":6262594,"authorDomain":"agio"}

Oh noes, smoker will have to shell out an extra buck a day to keep their cancer-causing habit. Cry me a @!$%#ing river.

{"commentId":6262594,"threadId":"543349","contentId":"2626767","authorDomain":"agio"}
  • 2 votes
Reply#1 - Wed Apr 1, 2009 12:33 PM EDT
{"commentId":6262879,"authorDomain":"Profchaos"}

when that extra buck goes to pay for a completely unrealted program, it is a sad day. it is reckless to tax smokers to pay for children's health care. it unfairly targets one group.

{"commentId":6262879,"threadId":"543349","contentId":"2626767","authorDomain":"Profchaos"}
  • 4 votes
#1.1 - Wed Apr 1, 2009 12:47 PM EDT
{"commentId":6262978,"authorDomain":"agio"}

Sorry, but I'd rather see relief for children without proper healthcare than for smokers. And I'm not even vehemently anti-smoking, I've had my share of cigs over the years.

{"commentId":6262978,"threadId":"543349","contentId":"2626767","authorDomain":"agio"}
  • 2 votes
#1.2 - Wed Apr 1, 2009 12:52 PM EDT
{"commentId":6270975,"authorDomain":"Jixer"}

As I've said before, this is just the first thing that will be taxed heavily. If they don't raise enough revenue through taxing cigarettes what will be next? Alcohol or Fast Food joints? Both are detrimental to your health. Expect more taxes! Electricty, cable TV, you name it they can tax it.

{"commentId":6270975,"threadId":"543349","contentId":"2626767","authorDomain":"Jixer"}
  • 2 votes
#1.3 - Wed Apr 1, 2009 7:56 PM EDT
{"commentId":6278983,"authorDomain":"agio"}

Again -- I'm not opposed to booze, smokes, or even the occasional Whopper. But I wouldn't complain if they levied a $1 tax on alcohol or fast food. Both are luxuries, and both have a relatively high cost to society.

{"commentId":6278983,"threadId":"543349","contentId":"2626767","authorDomain":"agio"}
  • 1 vote
#1.4 - Thu Apr 2, 2009 11:00 AM EDT
{"commentId":6287832,"authorDomain":"Jixer"}

Agio,

When all the luxuries have been over-taxed to the extent that most Americans can't afford them, what will be taxed next in order to maintain a steady flow of money to maintain the government programs? I really don't care if the government raises taxes on cigs, booze, or fast food either. What worries me is that when the government can't raise enough money from those things to maintain the programs because most of the people I know can't afford $100 for a carton of cigs, what comes next?

{"commentId":6287832,"threadId":"543349","contentId":"2626767","authorDomain":"Jixer"}
  • 1 vote
#1.5 - Thu Apr 2, 2009 6:55 PM EDT
Reply
{"commentId":6263265,"authorDomain":"waynester"}

Just put it in the pile with all the others...

{"commentId":6263265,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
  • 8 votes
Reply#2 - Wed Apr 1, 2009 1:03 PM EDT
{"commentId":6263573,"authorDomain":"mndrmnn"}

Oh, please. Now the Republicans are going to complain about cigarette taxes? How about if we have a tax for stupidity - you have to pay for every time you try to make an issue out of common sense things. The cigarette tax isn't about class warfare you morons.

How about if we put a tax on smokers such that every single penny that is spent in the treatment of cigarette-related illnesses comes out of the pockets of the smokers? This is never going to happen of course, but it would be the most appropriate tax.

{"commentId":6263573,"threadId":"543349","contentId":"2626767","authorDomain":"mndrmnn"}
  • 1 vote
Reply#3 - Wed Apr 1, 2009 1:18 PM EDT
{"commentId":6264017,"authorDomain":"Profchaos"}

that would make more sense than spending the money on children's health care.

when you pay a gas tax you generally are paying for upkeep on the roads. If you don't drive, you don't use the roads and you don't pay the tax. of course govt is so screwed up they dip into gas tax funds for other things and then complain that they don't have enough money to fix the roads...but that is another issue. the way taxes should work is that they are collected for a purpose related to where it is collcted from. children don't smoke so why should smokers pay for thier health care? how about people with kids pay for kid's health care? that way single and childless people don't have to pay to take care of everyone else's kids.

{"commentId":6264017,"threadId":"543349","contentId":"2626767","authorDomain":"Profchaos"}
  • 2 votes
#3.1 - Wed Apr 1, 2009 1:40 PM EDT
{"commentId":6264240,"authorDomain":"waynester"}
How about if we put a tax on smokers such that every single penny that is spent in the treatment of cigarette-related illnesses comes out of the pockets of the smokers?

Actually smokers and other risk takers tend to die before availing themselves to a lot of health care dollars. They fund their own health care plus the health care of many others with the taxes they pay.

{"commentId":6264240,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
  • 4 votes
#3.2 - Wed Apr 1, 2009 1:51 PM EDT
{"commentId":6264412,"authorDomain":"mndrmnn"}

Smokers tend to die before they use health care dollars?

My bad, here I thought there were a lot of people with emphysema and cancer and other diseases that are attributable to them smoking. Here I thought that there were other people with illnesses that can be attributed to someone else smoking in their vicinity.

My mistake. How altruistic of all the smokers that they are not only funding their own health care but everyone else's as well.

{"commentId":6264412,"threadId":"543349","contentId":"2626767","authorDomain":"mndrmnn"}
  • 2 votes
#3.3 - Wed Apr 1, 2009 1:59 PM EDT
{"commentId":6264799,"authorDomain":"waynester"}

I did indeed read somewhere that smokers, for the most part, do not linger. Lung cancer, for instance, doesn't let you hang around very long and there is little treatment, expensive or otherwise. Emphyzema isn't as quickly fatal but isn't particularly expensive to manage either. I'll try to find a reference for you.

{"commentId":6264799,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
  • 2 votes
#3.4 - Wed Apr 1, 2009 2:19 PM EDT
{"commentId":6267473,"authorDomain":"mndrmnn"}

You're going to find a reference saying that cigarette smokers don't rack up big medical bills? Really?

Good luck with that. Good grief.

{"commentId":6267473,"threadId":"543349","contentId":"2626767","authorDomain":"mndrmnn"}
  • 2 votes
#3.5 - Wed Apr 1, 2009 4:25 PM EDT
{"commentId":6277594,"authorDomain":"waynester"}

Here you go.

Health care costs for smokers at a given age are as much as 40 percent higher than those for nonsmokers, but in a population in which no one smoked the costs would be 7 percent higher among men and 4 percent higher among women than the costs in the current mixed population of smokers and nonsmokers...

Conclusions: If people stopped smoking, there would be a savings in health care costs, but only in the short term. Eventually, smoking cessation would lead to increased health care costs.

{"commentId":6277594,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
  • 1 vote
#3.6 - Thu Apr 2, 2009 9:38 AM EDT
{"commentId":6279935,"authorDomain":"mndrmnn"}

I stand corrected, Waynester. My apologies for not believing you.

I do have to pick on this article a little, though. They fail to take into account the fact that someone who lives longer will also work longer. I wonder if having a longer earning period would somewhat offset the costs of old age.

This article also does not take into consideration the health care costs of people who become sick because of their association with smokers. You would definitely have to include those costs in determining the overall health care costs of smoking.

But thank you for the link, Waynester. Smiles!

{"commentId":6279935,"threadId":"543349","contentId":"2626767","authorDomain":"mndrmnn"}
    #3.7 - Thu Apr 2, 2009 11:50 AM EDT
    {"commentId":6280283,"authorDomain":"agio"}

    One study does not an argument make. Here is another, more balanced viewpoint:

    Whether smoking adds to or subtracts from aggregate medical expenditures remains a matter of dispute. A series of studies has produced contradictory results, reflecting differences in the studies' underlying assumptions, methods, and data. The most recent published analysis essentially supported the original conclusion of Leu and Schaub that the net cost is effectively zero, but critiques of the new study have found important flaws in it. In another prominent analysis, Hodgson concluded that smoking did add significantly to the net health care costs of the US. He even found that net smoking related expenditures might be positive during the years of senior citizenship (65 and older). Hodgson's seemingly contrarian finding resulted in part because he considered all of smokers' medical costs associated with consumption of cigarettes, not merely those associated with the principal smoking related diseases (cardiovascular disease, lung cancer, and chronic obstructive pulmonary disease). Studies that have found no significant impact on net costs have limited consideration to these major smoking related diseases.

    No such study ever compares the expenditures to the number of people benefiting from them. The entire reason that old age expenditures unrelated to smoking might balance out earlier (and concurrent) smoking related expenditures is that smoking ensures that there are fewer people around to utilise health care services! If, instead of comparing aggregate expenditures, one asked how per capita expenditures compare with and without smoking, one would likely find that per capita expenditures are considerably greater with smoking than without it. The net cost perspective also ignores how much people contribute to the health care system, through taxes and insurance premiums. Because a disproportionate number of smokers die young, their contributions to health care funding sources are smaller than those of longer lived non-smokers.

    Kenneth E. Warner. The economics of tobacco: myths and realities. Tobacco control 9 (2000:Spring): 78-89. Available online (subscription may be required): http://tobaccocontrol.bmj.com/cgi/content/full/9/1/78#SEC3

    {"commentId":6280283,"threadId":"543349","contentId":"2626767","authorDomain":"agio"}
      #3.8 - Thu Apr 2, 2009 12:07 PM EDT
      {"commentId":6280477,"authorDomain":"waynester"}
      But thank you for the link, Waynester. Smiles!

      No worries, smiles back!

      {"commentId":6280477,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
      • 1 vote
      #3.9 - Thu Apr 2, 2009 12:19 PM EDT
      Reply
      {"commentId":6263664,"authorDomain":"VerbalBarb"}

      Boy, talk about nit-picking. Comparing raising a tax on a "luxury" with a pledge not to raise income taxes is just silly.

      {"commentId":6263664,"threadId":"543349","contentId":"2626767","authorDomain":"VerbalBarb"}
      • 3 votes
      Reply#4 - Wed Apr 1, 2009 1:23 PM EDT
      {"commentId":6264078,"authorDomain":"Profchaos"}

      it's a "sin" tax. buying a yahct has a luxury tax. cigarettes/alcohol taxes are sin taxes.

      did you read the article? there are many instances where Obama stated that taxes outside of just income taxes would not increase for those less than 250K$. even taking out that this hits lower income families more, he still raised taxes of more than just the rich.

      {"commentId":6264078,"threadId":"543349","contentId":"2626767","authorDomain":"Profchaos"}
      • 2 votes
      #4.1 - Wed Apr 1, 2009 1:43 PM EDT
      {"commentId":6264288,"authorDomain":"waynester"}

      And his cap and trade carbon tax will tax everyone who uses energy. That is to say, everyone. Some estimate that it will raise the cost of energy by about 40%. I hope you Obamatrons enjoy it. I hope you at least got a kiss...

      {"commentId":6264288,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
      • 5 votes
      #4.2 - Wed Apr 1, 2009 1:54 PM EDT
      {"commentId":6264810,"authorDomain":"restso"}

      Pssst cap and trade was left out of the budget, it's dead for now... neither side of the aisle supports it... find something else to complain about.

      {"commentId":6264810,"threadId":"543349","contentId":"2626767","authorDomain":"restso"}
      • 2 votes
      #4.3 - Wed Apr 1, 2009 2:19 PM EDT
      {"commentId":6264909,"authorDomain":"waynester"}
      it's dead for now

      Key words: for now

      find something else to complain about.

      An easier task has never been assigned.

      {"commentId":6264909,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
      • 3 votes
      #4.4 - Wed Apr 1, 2009 2:25 PM EDT
      {"commentId":6267303,"authorDomain":"VerbalBarb"}

      I still think it's nit-picky. Buying cigarettes is voluntary.

      {"commentId":6267303,"threadId":"543349","contentId":"2626767","authorDomain":"VerbalBarb"}
      • 2 votes
      #4.5 - Wed Apr 1, 2009 4:18 PM EDT
      Reply
      {"commentId":6263892,"authorDomain":"restso"}

      A cigarette is an option, no one says those poor people have to go in and pick up a pricey pack. I realize cigarettes are an addiction, but there are resources out there for those who want to quit paying this tax. This is a tax that a person who chooses to smoke choose to pay, the same person can choose not to smoke (yes, it is hard, unbeliveably hard, but it can be done.) Now if they quit it's a bigger reward to their wallet as well as their health.

      {"commentId":6263892,"threadId":"543349","contentId":"2626767","authorDomain":"restso"}
      • 3 votes
      Reply#5 - Wed Apr 1, 2009 1:35 PM EDT
      {"commentId":6271019,"authorDomain":"Jixer"}

      Yes, and if everyone quits how will the government fund children's health care? What would they tax next? It's just the beginning.

      {"commentId":6271019,"threadId":"543349","contentId":"2626767","authorDomain":"Jixer"}
      • 2 votes
      #5.1 - Wed Apr 1, 2009 7:58 PM EDT
      {"commentId":6274844,"authorDomain":"Freedomcorp"}

      Is that why he's increasing The Tax on Gasoline and Electricity? Keep defending the thief and liar, go ahead.

      {"commentId":6274844,"threadId":"543349","contentId":"2626767","authorDomain":"Freedomcorp"}
      • 2 votes
      #5.2 - Thu Apr 2, 2009 1:15 AM EDT
      Reply
      {"commentId":6264161,"authorDomain":"csfoster2000"}

      The last time I checked, no one has died due to cigarette smoking withdrawal although plenty have died due to smoking cigarettes.

      At any rate, it is a voluntary tax one can elect to impose on one's self or not. Whereas, people have no choice but to eat, people can choose not to smoke.

      {"commentId":6264161,"threadId":"543349","contentId":"2626767","authorDomain":"csfoster2000"}
      • 3 votes
      Reply#6 - Wed Apr 1, 2009 1:47 PM EDT
      {"commentId":6264655,"authorDomain":"Profchaos"}

      if this is about getting people to stop smoking, then where will the money come to fund children's health care? this is why you don't tax one group to pay for another. if cigarette tax money goes to a smoking health crare program, less smokers equals less money brought in by tax but also less money required to pay for the program.

      what happens now if smokers start quitting? children lose their health care program. does that make any sense?

      {"commentId":6264655,"threadId":"543349","contentId":"2626767","authorDomain":"Profchaos"}
      • 3 votes
      #6.1 - Wed Apr 1, 2009 2:11 PM EDT
      {"commentId":6264793,"authorDomain":"csfoster2000"}

      A professional demonstration of how to create chaos professor?

      {"commentId":6264793,"threadId":"543349","contentId":"2626767","authorDomain":"csfoster2000"}
      • 1 vote
      #6.2 - Wed Apr 1, 2009 2:18 PM EDT
      {"commentId":6264851,"authorDomain":"waynester"}

      That's the point I've been trying to make for years. The Federal government puts itself in the middle of a moral conundrum with this BS. What of the Federally funded quit-smoking programs? Are they in fact immoral due to the effect of decreasing funding for children's healthcare?

      {"commentId":6264851,"threadId":"543349","contentId":"2626767","authorDomain":"waynester"}
      • 3 votes
      #6.3 - Wed Apr 1, 2009 2:22 PM EDT
      {"commentId":6274829,"authorDomain":"Freedomcorp"}

      It's a moral tax. Dems like to push their morals on everyoine. It's ok to tax smokers because smoking is a bad habit, we say so. Itll get real bad with Universal Healthcare. The excuse for you not being allowed to eat a cheeseburger will be "Society" has to pay for your Obesenss. We will go after booze finally with really high taxes. That kills more than anything.

      {"commentId":6274829,"threadId":"543349","contentId":"2626767","authorDomain":"Freedomcorp"}
        #6.4 - Thu Apr 2, 2009 1:13 AM EDT
        Reply
        {"commentId":6270031,"authorDomain":"comstocklode"}

        It all boils down to he's a Godamn LIAR.

        {"commentId":6270031,"threadId":"543349","contentId":"2626767","authorDomain":"comstocklode"}
        • 2 votes
        Reply#7 - Wed Apr 1, 2009 6:51 PM EDT
        {"commentId":6271674,"authorDomain":"merlo54838"}

        If they had a tax for stupidity OBAMA and all his liberal sheep would be taxed to death.

        {"commentId":6271674,"threadId":"543349","contentId":"2626767","authorDomain":"merlo54838"}
        • 1 vote
        Reply#8 - Wed Apr 1, 2009 8:47 PM EDT
        {"commentId":6274783,"authorDomain":"Freedomcorp"}

        I've never seen any President called an out and out liar so much in my life. It's a shame that the Office of The President has lost all it's Respect now. He really did a job on it. Wait to you see the new Energy Tax (which isn't a tax, as he sees it). People hate to admit when they've been sold a Bill 'O Goods, so no matter what he does, new wars, high taxes, kiss the EUs butt, they'll try and sell it as good for the nation. I'm glad my kid isn't in the military.

        {"commentId":6274783,"threadId":"543349","contentId":"2626767","authorDomain":"Freedomcorp"}
          Reply#9 - Thu Apr 2, 2009 1:08 AM EDT
          {"commentId":6276676,"authorDomain":"hvymtl83"}

          Umm, Bush is no longer the President ;-).

          {"commentId":6276676,"threadId":"543349","contentId":"2626767","authorDomain":"hvymtl83"}
          • 2 votes
          #9.1 - Thu Apr 2, 2009 8:24 AM EDT
          Reply
          {"commentId":10410884,"authorDomain":"breelaboy"}
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