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Tobacco tax hike for US smokers Tobacco tax rise for US smokers
(about 14 hours later)
The largest-ever single increase in federal taxes on cigarettes is due to go into effect. The largest-ever single increase in US federal taxes on cigarettes has taken effect, almost tripling the tax on a packet to more than $1.
The federal tax on a packet of cigarettes is almost tripling, to more than a dollar.
The Obama administration plans to use the money to pay for health care for uninsured children.The Obama administration plans to use the money to pay for health care for uninsured children.
Health campaigners say raising taxes on cigarettes in the middle of a recession is a good way to get more people to stop smoking.Health campaigners say raising taxes on cigarettes in the middle of a recession is a good way to get more people to stop smoking.
For people with a pack-a-day habit, the tax hike will cost them another $225 (£156) a year. A 20-a-day smoker will have to pay an additional $225 (£156) a year.
Similar tax increases are going into effect for cigars, pipe tobacco and chewing tobacco. Similar tax increases went into effect for cigars, pipe tobacco and chewing tobacco.
Help to quitHelp to quit
Paola Munoz is exactly the type of person they are hoping to reach. She has been smoking for more than three years but her New Year's resolution this year was to quit. Paola Munoz is exactly the type of person they are hoping to reach, the BBC's Stuart Cohen reports from Washington.
She says she has already cut down from one pack a day, and the new tax will help her give up the habit altogether. She has been smoking for more than three years but her New Year's resolution this year was to quit.
She says she has already cut down from one pack a day and the new tax will help her give up the habit altogether.
"I buy a pack every three days," she says."I buy a pack every three days," she says.
"With the tax it is going to be around $6 and some change. And I don't want to pay that… so I'd rather just quit, and this is a great excuse to go cold turkey and quit completely.""With the tax it is going to be around $6 and some change. And I don't want to pay that… so I'd rather just quit, and this is a great excuse to go cold turkey and quit completely."
The cigarette companies have not been standing idly by.The cigarette companies have not been standing idly by.
They raised prices on cigarettes a few weeks ago to start making up for the money they expect to lose in sales.They raised prices on cigarettes a few weeks ago to start making up for the money they expect to lose in sales.
The tax increase is just the first step in a newly energised anti-smoking campaign in the now Democrat-controlled Congress.The tax increase is just the first step in a newly energised anti-smoking campaign in the now Democrat-controlled Congress.
They are considering a law that would allow the Food and Drug Administration to regulate tobacco - something the industry has successfully fought for years.They are considering a law that would allow the Food and Drug Administration to regulate tobacco - something the industry has successfully fought for years.