The S-CHIP revision is by far the largest tax increase in written history on a single product.  A product that’s consumers happens to be a much maligned minority of late;  the smoker.  Tobacco tax is slated to go up across the board with cigars increasing at about 60 cents a stick, loose pipe tobacco up around $3 per lb and packaged cigarettes up the least at 60 cents a pack.   The RYO loose tobacco tax, or Roll-Your-Own cigarette loose tobacco increases from just over $1 per lb to a whopping $24 per lb!  This on the poorest of the poor and variously challenged smokers.  Cigarettes will be out of reach for the homeless, poverty stricken, laid off, retired and mentally ill across the nation.  A pack of home-mades will shoot to brand name levels regardless of  the time, equipment and efforts expended by these do-it-yourselfers.  The RYO market generates less than one half of one percent (0.5%) of the of the total tobacco revenues accrued in the US each year.  The brunt of the tax being placed on the shoulders of the destitute, unemployed, misfit, handicapped, injured, laid off and retired is obscene.  In the end, the tax on the final product will constitute  80% of the retail cost!   That’s no misprint neither, no single product in the history of the United States has been taxed anywhere close to this.   One would be hard pressed to find any taxation equivalent in the entire history of the civilized world.

A segment in RYO also exists that do keep up with the Jone’s and smoke RYO for reasons other than economics.  This group chooses an all natural,  100% tobacco product as opposed to the 50% common to the prepackaged cigarette industry.  These RYOers don’t want the additional, unknown long term health implications caused by the chemical cocktail called a cigarette in the commercial cigarette industry.   They also don’t care for the forced ingestion of the unknown toxins replete in  the FSC* mandated packaged cigarette papers.   When much of the RYO industry is forced to close doors due to the overwhelming tax increases, not only will it’s patrons suffer a smaller selection but risk losing their choice in it’s entirety.   This will likely end up legislating an entire class to return to a product no longer fit for human consumption.

The RYO industry itself is being put in jeopardy in a two step manner.  The increased price of tobacco will cause much of the allure of roll-it-yourself to disintegrate losing both it’s veterans and significantly decreasing any new customer base.   The final killer to many of the retailers is the Floor tax where the tax of $24.78 per lb on any existing stock as of 04/01/09 becomes immediately due. This Floor Tax could well end up being the demise of the entire industry while Big Tobacco ironically gets it’s wish.  The RYO industry is a much different animal than the Big Players whose huge factories billow smoke 24/7 and suit and lab coat adorned staff conducting experiments within.  In RYO there’s the farmers for supply, small businesses all along the line for distribution, packaging and redistribution to Mom and Pop shops and neighborhood tobacconists for final sale.  All down the line jobs will be lost and compromised with thousand losing work and savings,  risking their families well being and future.   Big Tobacco will come out nicely with a modest price increase and a drove of ex-RYOers falling back into line to buy their chemical laden, fire safe doses once again.

Exactly what the government is thinking is perplexing at first glance.  The smallest and weakest effectively being killed off by our government who will then ironically bolster the most checkered industry in the US,  operating lawfully by a slim and questionable margin.  The real affront is to the sick, unemployed, laid off and retired who will no longer be able to afford one of the few luxuries they still endear.  Many do not realize that tobacco is not just a simple luxury  but a necessity in which once-naive youngsters, fell victim to an immorally marketed yet legal addiction they either cannot or will not break.  The fact that these self righteous take comfort in a victory targeted at the poorest and the weakest while those who can afford the extra 60 cent spanking might even share in the benefits is testament in itself.