New Jersey State Senator Joseph Vitale has submitted S.B. No. 4820 that would raise the tax on premium cigars from the current rate of 30% to a regressive and uncompetitive rate of 50% (of the wholesale price.) This would have a devastating effect on the small business community tobacconists of New Jersey, hurting consumers, businesses, and jobs.
Why This Matters:
- Unfair Targeting of Premium Cigars: This bill targets premium cigars, which are often handcrafted, small-batch products. Taxing these products at exorbitant rates is not only unfair but also disproportionate compared to other goods in the state.
- Devastating Price Hikes: An 20% tax increase would significantly raise the cost of premium cigars for consumers, leading to fewer sales and greater financial strain on cigar shops, small businesses, and the state.
- Economic Impact: New Jersey cigar retailers, importers, and distributors would be hit hard, putting jobs at risk and discouraging investment in the state.