Tomorrow, Californians will vote on Prop. 29, a measure that would increase already-high cigar taxes in the Golden State by a whopping 73%. In the short term, the consequences of the outcome will be confined to the state, and those who own cigar shops will be hardest hit. In the long term, the implications could be national.
Those of us who follow cigar rights issues won’t be surprised to learn that anti-tobacco politicians, groups, and other zealots are aiming to curtail the sale and enjoyment of cigars through radically high taxes—particularly in California. While few will come right out to admit it (at least for now), the goal of many of these extremists is to completely wipe tobacco from the face of the planet.
But that ambitious plan is on hold for a while. Now, the battle is over a massive tax hike that would drive cigar purchases out of state and devastate small tobacconists.
What’s surprising about this proposed tax hike, however, is that the nearly $800 million in revenue it is projected to raise will not be used to stuff state coffers. There is no requirement the collected money be spent in California, and as much as 40% of the funds can go to overhead, as opposed to actual research. That’s particularly interesting because California’s finances are in complete shambles. “California has a $16 billion budget deficit, a $200 billion long term debt, and an 11% unemployment rate, one of the highest in the country,†said Keith Park, founder of Prometheus, a Los Angeles-based purveyor of fine cigars and accessories. “In this dire financial situation, the American Cancer Society, bicycle celebrity Lance Armstrong, and billionaire New York City Mayor Michael Bloomberg are sponsoring a people’s referendum…which will make California smokers pay $735 million in new taxes for cancer research for the whole nation.â€
You read that right. California can’t keep its own house in order, but Prop. 29 proponents are suggesting the revenue from Californian tobacco taxes should flow out of the state. “The larger problem with Proposition 29 is its pigeonholing of the money for cancer research rather than for immediate needs here in California that are absolutely dire,†writes Michael Hiltzik of the Los Angeles Times. “It’s all well and good to say that cancer research benefits everyone, but the real question is whether it should be the absolute top priority for a state that can’t afford to keep its children fed or offer them medical care in the here and now.â€
Of course, since we’re talking about California, these matters won’t be vetted though a normal legislative process. Instead, they’ll be put to a popularity contest at the polls tomorrow. “The California premium cigar retailers, distributors, and manufacturers have formed California Citizens Against Wasteful Taxes to defeat Prop. 29,†says Park. “The election is so close that no one can anticipate the final outcome. The voter turnout among cigar smokers will make a huge difference.â€
Of National Concern
The typical cigar enthusiast who lives outside California might be tempted to think that this is a non-issue for him. If Californians want to pay outrageous taxes to support medical research notwithstanding their own budget problems, then who am I to complain?
This dismissal would be a huge mistake. States like California and New York, sadly, have paved the way for anti-tobacco measures that are now commonplace nationwide. For instance, California was the first state to ban smoking in most workplaces at a time when such a move was considered radical. Government-imposed smoking bans in restaurants, bars, and most indoor locations across the country are now the rule instead of the exception. So if Prop. 29 passes, don’t be surprised to see a similar bill proposed in a state legislature near you in the coming years.
Given the combination of federal, state, and local taxes levied on tobacco, cigar enthusiasts already pay more than their fair share. So let’s do everything we can to prevent California from setting another terrible trend. If you live in California, please be sure to get out to the polls to vote no on Prop. 29. And if you don’t, I would also urge you to contact your friends and family members in California to urge them to vote a resounding “no†as well.
–Patrick A
photo credit: Defeat Prop. 29
1) Most media outlets are still calling the vote too close to call, but California’s 
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