Rolling Back the Tobacco Tax of 2009

Whereas small cigars and roll-your-own tobacco are preferred by the 31 percent of tobacco smokers who are poor; And the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA, Public Law 111–3) Title VII Revenue Provisions Section 701 Increase in Excise Tax Rate on Tobacco Products, imposed a 2,653 percent tax increase on small cigars and 2,159 percent tax increase on roll-your-own tobacco;

And small cigarettes, large cigarettes, chewing tobacco, snuff, pipe tobacco, cigarette papers and cigarette tubes were subjected to a more reasonable 158 percent increase and large cigars a 155 percent increase and no floor tax.

Therefore this cruel and unusual excise tax is excessive; And consumers of small cigars and roll-your-own are due the equal protection of the clause 26USC(F)(65)(B) §6423(c); To the full extent of their loss; Calculated by dividing the excessive tax hike on small cigars and hand-rolling tobacco by the 158 percent, multiplying by the two years the excessive rate was in effect and rounding to the nearest whole integer, wherefore;

Small Cigars – Section 5701(a) of the Internal Revenue Code of 1986 as codified at 27CFR(I)(40)(C)§40.21 is amended by striking $50.33 and inserting $1.828 with a footnote that states, “refunded at this tax rate for excessive CHIPRA hike of 2009-2010 until April 1, 2045”.

Roll-Your-Own Tobacco- Section 5701(g) of the Internal Revenue Code of 1986 as codified at 27CFR(I)(40)(C)§40.25a is amended by striking $24.78 and inserting $1.0969 with a footnote that states, “refunded at this rate for excessive CHIPRA hike of 2009-2010 until April 1, 2038”.

And 100 percent of the proceeds of the Attorney Generals’ Master Tobacco Settlement shall be deposited in the Federal, State Children’s Health Insurance Program (S-CHIP) account. States, particularly those increasing rates 2009-2010, shall grant roll-your own and small cigar smokers refunds.

Taxpayers shall not be eligible for the rolled back to the March 31, 2009 tax rate of 2008 for our traditionally cheapest rolling tobacco and small cigars, until they can prove they have reduced wholesale and retail prices to what they were before the tax increase, allowing for a 3 percent inflation rate and any new state excise tax increases incurred 2009-2010.

To express better understanding the Uniform Surgeon General Warning Labels shall read – Nicotine withdrawal is a mental illness. Excessive smoking and addiction may irritate emphysema, cancer and heart disease and complicate pregnancy.

The Alcohol and Tobacco Tax and Trade Bureau wrote to thank me for my opinion. I hope to read your comments on the excessiveness of the tobacco tax and this proposed excise tax refund to compensate the poor extortion victims. You can read the whole Act and Report published 10/10/10 at www.title24uscode.org/tobacco.htm