NJ smokers fume over proposed cigar federal tax hike

Cigar smokers are fuming over a taxation plan that could cost them big bucks. Under proposed legislation, the federal tax on each cigar would rise from five cents to $10. The money would go to pay for

News 12 Staff

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Jul 21, 2007, 10:32 PM

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Updated 6,264 days ago

Cigar smokers are fuming over a taxation plan that could cost them big bucks.

Under proposed legislation, the federal tax on each cigar would rise from five cents to $10. The money would go to pay for children's health insurance.

The cigar industry generated $5.3 billion sales and gave the federal government $225 million last year and some say a tax hike on cigars would snuff out business.

Avram Malkin, manager of Smoker?s Haven in Metuchen, started a petition hoping someone in Washington will listen. He collected 110 signatures after only a few days.

President Bush said he would veto the proposed bill. It would also raise taxes on cigarettes. Federal taxes on a pack would jump from 39 cents a pack to $1.