Tax the Hand that Feeds

[saelliso]

The majority of non-smokers throughout the state of Indiana have backed our state legislators in their quest to put an end to the evil of Phillip Morris and RJ Reynolds. The two main ways legislators are hoping to accomplish this is through tax increases on tobacco and lawsuits against the tobacco companies.

What people don't realize is that not only are they gouging smokers pocket's, but also farmers and ultimately their own. Tobacco is Indiana's third largest cash crop, bringing in millions to farmers, local governments, companies that sell equipment to tobacco farmers, etc. Loss on the sale of tobacco can severely decrease the income for each.

But even then it isn't that simple. It hurts all the people who have jobs both directly related to tobacco and those that work for companies that supply those farmers with equipment, people who work for companies that supply to a company that supplies tobacco farmers, etc., etc.

This trickle down effect ultimately hurts everyone as any economist will tell you.

This really has two messages. First, people in Indiana need to understand what the hell is really happening. Secondly, everyone would be better off if those who don't smoke would start.

[silverteioh]

I think taxing smokers is a fairly good idea. It makes some sense. Tax people that are addicted to a substance, and they will pay whatever price necessary to feed their craving. If they want to kill themselves over years of use, fine. Government can do what its good at and suck all the money from them before they croak.

And you bitch about the effect it will have on our economy. Have you ever downloaded a song illegally of a file sharing program like Napster? The music industry is the WORLD'S fifth largest industry, which is a hell of a lot larger than tobacco is to Indiana. And they lose millions of dollars each year to kids like us, who would rather pirate for free than pay for the CD. So before you start lecturing people on taxing smokers, think about the big picture.

I'll get off my soapbox now.

[This message has been edited by silverteioh (edited March 06, 2002).]

I just want to say that sex and masturbation are two different things

To say that the music industry loses money from file-sharing applications is subject to assumption...

In the Napster years, the music industry actually grew considerably compared to what it did in the pre-napster days. It's true that the last year's stats show that sales were down...but it's also true that Napster was shut down during this same time frame.

Some may say that it's purely coincidence that the RIAA gained a considerable amount of revenue during Napster's prime years, and that it's drop after the end of Napster was also due to coincidence...but to say that is still an assumption, the same thing as saying that peer to peer applications hurt the music industry, as opposed to helping it.

It should be noted that Napster is/was not the only file-sharing application...but it most certainly was the most popular and successful. The ones available now aren't nearly as useful...(another opinion).

[AcTivE]

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[saelliso]

In respons to silverteioh's comments:

I agree that taxing people that are addicted to something make sense. Taxing anything with inelastic demand will bring in revenue regardless of the size of the tax. Unfortunately there is no nice way to say that your "thinking about the big picture" argument is wrong.

In the macro sense you are right in saying that the cd industry is a hell of a lot more important to the world's economy than the tobacco industry is to Indiana. But, I wasn't talking about the world's economy. If you would like me to, I can some other time though.

Looking at the BIG PICTURE, the entire state of indiana is in actuality harming itself becuase of the tobacco tax. Not only does the industry suffer and the trickle down effect takes place, but a tobacco tax is the most regressive tax on the law books to date.

The latest numbers on the demographics of smokers show that it is the bottom third of income earners who make up the majority of smokers. Meaning that it is the people with the least amount of money who are being taxed. While yes they will pay the increased tax for as long as they can, but at a certain point items like food and shelter become more important to them then buying cigarettes. In other words, they will begin to forgo their smoking habit to preserve their quality of life. This will cause the loss of sales for the tobacco industry.


Now getting back to why you are wrong . .
Think about it. The tax on tobacco will ultimately cause the loss of income and jobs as businesses that are both directly and indirectly related suffer from loss of income. While cigarettes are an inelastic product, because of the reason mentioned previously and the fact that not everyone is hooked, sales will fall and all residents of Indiana will be hurt.

On the other hand going back to your example, yes the music industry is possibly somewhat hurt by napster and sites like that. But you have to look at the big picture. Suppose the music industry was somewhat damaged by file-sharing, and possibly some jobs were lost in the music industry. Where those jobs are lost others are gained by the dot-coms who promote file sharing. So this does not harm the economy because it is simply structural unemployment and where one industry loses jobs another gains them.


By the way, Happy Birthday Orgazmo!

Ahh, thank you very much saelliso, it's very appreciated.

[saelliso]

my pleasure

[Lethal]

"Where those jobs are lost others are gained by the dot-coms who promote file sharing."

I'm sure Indiana could build some gum factories. Because everyone knows people want gum if they can't smoke. This would supply those workers laid off with knew jobs. So i don't see a problem with taxing smokers.

[BigDongedHoe]

Personally I think saelliso's post are extremely gay and have no point at all. Who gives a fuck about Saelliso's points anyways. They suck dick and belong with homosexuals (lesbians, homo butt fuckers)

Saelliso you do not belong here and your posts mean shit. Suck a dick faggot

[silverteioh]

I mean, come on saelliso. It's not like anyone is being serious on these boards. Taxes and shit have no place here.

He's just trying to prove a point...

Also, the nubblies.com boards are really for anything...normally I tell people that so they know to post goofy shit, but in this case it's to post normal stuff...

So yeah...I find nothing wrong w/the post at all, it looks like quite a reasonable rant to me.

[saelliso]

Thanks Orgazmo!

Anytime, anytime

[GonjaKing]

in reply to the increase on taxation of cigs, i thinks its a good cause. maybe now people will realize cigs are bad and go to more life prolonging things, such as a fat dubie.


SMOKE WEED EVER DAY, AND U WILL NEVER GET CANCER.


Gonja King(Clit Commander)