Cigar Makers Say Tobacco Tax Hike Will Hurt Them, Too

Source from:  Associated Press 04/02/2009

Cigarette smokers aren't the only ones grumbling over a hike in the tobacco tax that's kicking in today. Cigar makers say the increase will torch jobs and profits -- what's left of them in the recession. The tax will increase from 5 cents to about 40 cents on large cigars, a little less on smaller stogies. Cigarette smokers have to pay 62 cents more per pack. Cigar makers and importers say their industry will suffer disproportionally, especially in Florida, the hub of the U.S cigar business. Revenue from the new tax will help pay for a health insurance program for low-income children. President Barack Obama signed it into law about two months ago. Enditem