Cigar stores brace for big federal tax increase

Thursday, March 05 2009

Large cigars will be taxed at 40 cents per cigar starting April 1. That is up from a nickel per cigar but below a $3 to $10 per cigar tax that Congress had considered.

A good 5-cent cigar, if there is such a thing, would nearly double in cost to 9 cents under the tax increase on small cigars.
 
"Politicians go after sin taxes rightly or wrongly; that's what they've always done," said Michael Jaye, owner of Oggie's Cigars in northeast Phoenix.
Cigar stores brace for big federal tax increase continues...