Jump to full article: Philadelphia (PA) Inquirer, 2009-10-06
Intro: It's easy to see why Senate Republicans in Harrisburg are upset with worthy last-minute budget changes by House Democrats after the two sides had reached an accord.
House Democrats now want to replace two unpopular taxes with a tax on cigars and the extraction of natural gas. But Republican opposition suggests a link to campaign money from tobacco and energy companies. . . .
House Democrats instead proposed to tax cigars and smokeless tobacco, two ideas with broad public support everywhere but in the Senate GOP. Could this be because the tobacco industry donated more than $415,000 to political candidates and their committees in Pennsylvania in 2008 - 81 percent of it to Republicans?
Lobbyists for tobacco giant Altria reportedly persuaded legislative leaders to tax cigarillos but not big cigars. Altria owns cigar-making plants in Limerick and King of Prussia.
That may help explain why Pennsylvania is the only state without a tax on smokeless tobacco, and one of only two (Florida is the other) without a tax on cigars.
It may also explain why when deals get cut in a smoke-filled room, fat cigars remain tax free.
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