Smokers' tax hike ignites passion

Like he has done most every day for years, Robert Lawrence walked into a West Ashley tobacco shop Wednesday and bought two packs of Kools.

But on this day, it set him back $7.72 — almost $2 more than it did the day before, all because of a steep increase in the federal tobacco tax and other forces causing prices to rise.

Lowcountry smokers not only had to cough up at least 62 cents more a pack Wednesday, but they know this may just be the start. South Carolina lawmakers are expected to raise the state's current lowest-in-the-nation tobacco tax from 7 cents to 57 cents a pack this year. That debate is set to unfold on the House floor today.

Not that Lawrence, 69, was complaining. "I don't have no problem with it," he said, adding that he has smoked all his life. "I'll still keep doing the same thing I've been doing."

Others, however, got more fired up.

"I hate it," said Carmen Burnet of West Ashley. "It's hurtful. They need to do it (raise taxes) with alcohol more than cigarettes."

Sandra Castellano said she had been working toward quitting in any case, and the tax increase was simply the final straw. "I'm not giving Obama no

Sandra Castellano said she had been working toward quitting in any case, and the tax increase was simply the final straw. "I'm not giving Obama no more of my damn money," she said. "They're just hoggish."

Bill Norrell of West Ashley remembered cigarettes costing only a quarter a pack when he first lit up 40 years ago. He plans to quit.

"I don't have any choice. I'm retired. I'm on a limited budget, especially now with this economy," he said, figuring his pack-a-day habit now would set him back at least $150 a month.

For Rick Beaver, who has owned Lowcountry Tobacco for 10 years, the federal increase is a double-edged sword.

The pending tax helped him enjoy his busiest day ever on Tuesday, as customers scrambled to stock up before the tax kicked in. And he figures his discount shop will be more appealing as prices rise because people will try to get their smokes as cheaply as possible and because other stores may stock fewer cigarette brands, giving him a greater niche.

But don't mistake him for a happy man.

His customers have been complaining about the looming increase for two months, and he had to count every pack on his shelves late Tuesday so he could send the government 62 cents per pack. He figures the tax bill — on merchandise he already has bought — will exceed $6,000.

"I'm angry as hell, if you can't tell," he said.

Beaver said his customers will opt for cheaper brands. Prices for packs on Beaver's shelves ranged from a low of $2.79 to a high of $5.19 Wednesday. But no matter the pack, the federal tax will be $1.01. The extra money will be used to expand the State Children's Health Insurance Program, which provides care for low-income children.

The federal tax increase isn't the only force pushing pack prices up. Beaver said manufacturers used the tax increase to raise their own prices, partly because they hope to prop up profits as sales drop. And Beaver said he will collect more state and local sales taxes per pack because the federal tobacco tax isn't exempted from that.

Also, his business license fee— which is based on his gross sales — will go up too.

Lee Kuchenbrod of Charleston said he has switched brands to save some money, but he agreed with the reasoning behind the tax increase — to raise more money for the federal government and to encourage people to quit — or not to start in the first place.

"Those are both good reasons, but it's going to hurt a lot of people," he said.

Beaver did have one satisfied customer Wednesday afternoon — a woman who peeled off a series of fresh $20 bills to buy four cartons.

"She paid $32 a carton and was ecstatic," he said. "Of course, she was from Connecticut, where those cartons cost $65 apiece," he said.

"As angry as we are about prices, we're still the cheapest in the country."