Cigars, Cigar Information and where to find Premium Cigars, Discounted Cigars and even Cheap Cigars - SCHIP TAX UPDATE: CONTACT YOUR CONGRESS REPS (AGAIN) TODAY!

SCHIP TAX UPDATE: CONTACT YOUR CONGRESS REPS (AGAIN) TODAY!

SCHIP TAX UPDATE: CONTACT YOUR CONGRESS REPS (AGAIN) TODAY!

Plus: Cuban Edicion Limitadas for 2007 now shipping

Los Angeles, September 12 – “Today the tax is 20.7 percent of the manufacturer’s price, with a cap of $48.75 per thousand, or about a nickel a cigar. The House increases the percentage to 44.6 percent, with a cap of $1 per cigar. The Senate version is 53.1 percent and a cap of $3 per cigar.”

That’s the issue facing cigar smokers in a nutshell, summarized by the highly-respected Mike Gold of Arango Cigars, one of the nation’s important distributors of cigars, pipe tobacco and accessories in an interview with The Heartland Institute.

He also noted that the Congressional tax plan to fund the State Children’s Health Insurance Program on the back of tobacco users goes much further. In addition to an increase in the tax on cigarettes, Gold told The Heartland Institute:

“On little cigars, today the tax is $1.80 per thousand. The House bill does to $42 per thousand. The Senate bill is $50 per thousand. They’re basically putting the small cigars out of business.”

Reporter Steve Stanek added that so-called “other tobacco products” would also get hit. Roll-your-own tobacco, currently taxed at $1.10 a pound, would be taxed at $7.47 per pound under the House proposal while under the Senate bill, the tax would be $8.90 per pound. “This wouldf also put roll-your-own out of business,” said Gold.

Chris McCalla, the legislative director of the International Premium Cigar and Pipe Retailers Association (former known as the RTDA), summarized the current legislative situation in a circular to the trade:

“As the two bills, House Resolution (HR) 3162 (the House version) and HR 976, the Senate version, of the proposed federal cigar tax to fund the State Children's Health Insurance Plan (SCHIP), have been approved by both chambers, both bills must be compromised into a single piece of legislation, for presentation for (a most likely) presidential veto.

“The two bills will be compromised into a single piece of legislation either in an official joint conference committee made up of members of both the Senate and House of Representatives, Democrats and Republicans (with Democrats compromising the majority of this committee as they hold the majority in Congress), or the compromise bill will be resolved outside of committee among Democratic leaders only. Either way, the final compromised legislation must be presented to both chambers for a straight up-or-down vote before being sent to the White House for consideration.

“However, it may be unlikely Congress will have a final bill until the Christmas Recess, scheduled for December 12. Of the likely short-term scenarios to play out, as SCHIP expires September 30, Congress may approve an extension of the current SCHIP statute to keep the program running. This will buy time for Congress to continue its deliberation and compromise of the final legislation.”

McCalla is asking the trade, and smokers across the nation, to continue to register their protest with their local Representatives and Senators. “I know it becomes repetitive to continue urging you and your customers to continue contacting your representatives – this is all part of the game. Make your point, and make it again and again. Do not let Congress think we are simply a flash in the pan – they must realize all of us are in this and committed for the long-term. Let them know that when this current issue is complete, we will be closely eyeing them from here on.” An efficient and easy way to contact your Representatives and Senators is offered through the new Cigar Association of America Website. It offers an easy-to-use tool for sending a message against the SCHIP funding proposal; please do it today!

From the Cubador:
Habanos S.A. formally announced the availability of its Edicion Limitadas for 2007 with three cigars making up this year’s class:

• Hoyo de Monterrey “Regalos”: a 5 3/4-inch by 46-ring ring Corona Extra (pictured) which is offered in a large, slide-lid box of 25. Although not specified, this is believed to be a revival of an old factory shape called “Britanicas.”

• Romeo y Julieta “Escudos”: a 5 1/2-inch by 50-ring Robusto which is known by the factory name of Gordito. It’s offered in a standard-style box of 25.

• Trinidad “Ingenios”: a classic Lonsdale of 6 1/2 inches long and 42 ring (factory name: Cervantes) which is packed in a semi-plain wood box with a front clasp. The box holds just one layer of 12 cigars.

As usual, all of the Limitadas are double-banded with the year of distribution highlighted. All of the sizes are outside of the usual range of each brand and are specific to the Limitada line.

All of the leaves in all three cigars have been aged for two years or more and are made in “small quantities,” although Habanos does not cite the actual production figures.

The Hoyo de Monterrey and Romeo y Julieta cigars now on sale; the Trinidad is scheduled to go on sale in October.

Hammer time:
Famous Smoke Shop’s CigarAuctioneer.com site is now featuring Arturo Fuente Hemingway cigars with the first auction closing last Monday.

That offer was for 25 individual Hemingway Signature cigars of six inches by 47 ring gauge. This cigar has a standard retail price of $6.50 each (before local tobacco taxes) and can usually be found, although production is limited. That was not what was on the mind of bidders, however.

It’s a Fuente cigar, so the bidding was pretty wild, topping out at $40.00 per cigar for two buyers who purchased one each. There were seven other winning bidders, who offered between $20.00 and $25.50 for as few as one and as many as five cigars. The total take for the box of 25 was $562.50, a healthy average of $22.50 each or about three and a half times the retail price.

Oh, yes, Famous has the Signature in its regular stock, priced at $145.95 for a box of 25.

This week, the Arturo Fuente Hemingway Series Classic is up for bid. It’s a seven-inch by 48-ring Churchill with a suggested retail price of $7.50. The auction ends next Monday at 9:59 p.m. Eastern time.
~ Rich Perelman

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