The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.
The Beginning
In 1492, Columbus discovered what he described as a "dried leaf" to be given as gifts, and later thrown away. 26 years later, in 1518 Juan De Grijalva landed in Yucatan, and there he found the natives were smoking tobacco in cigarette form. By 1531, Tobacco was being cultivated in Europe and shipped across the world.
Tobacco Taxation Begins
As with any profitable crop, the government saw money to be made in taxing tobacco products. In 1794, under Alexander Hamilton’s tax package, the United States Congress passed the first Federal excise tax on tobacco products. From the beginning, the tax was fought and debated. However, by1880 tobacco taxes accounted for 31% of total federal tax receipts.
Civil War Taxes
To increase federal revenue during the Civil War cigars and cigarettes were singled out for additional taxation. While these taxes were meant to be temporary, they actually went up in 1865, 1866, and 1875. They did go back down for only a short time before being increased again during the Spanish-American War in 1922.
State Cigarette Taxation
In 1921, the State of Iowa made history by becoming the first State to collect taxes on cigarettes just for their state. By 1950, 40 States and the District of Columbia were also collecting State taxes on the sale of cigarettes.
Federal & State Cigarette Taxes
Although the very first U.S. cigarette excise tax was imposed to pay for the Civil War, over time it has become a solid source of state and federal revenue. In 2007 alone, the federal government collected over $7 billion dollars from cigarette related taxes, and all the states in the country combined collected an incredible $21 billion.
Current Cigarette Tax Increases
Over the past decade the average tax rate levied on cigarettes has increased nearly 200%, and our country’s recent financial troubles have led to dozens of new tax proposals on both the state and federal levels that include cigarette tax hikes. As of April 1, the Federal excise tax increased from $0.39 to $1.01 per pack as part of Presidents Obama’s State Children’s Health Insurance Plan.
In addition to Federal tax increases, dozens of states and local governments are also considering additional taxes on tobacco products. In San Francisco the mayor is considering an additional $0.33 tax per pack to pay for the cost of cleaning up cigarette butts. On the other side of the country, states like Arkansas and Kentucky have doubled their average taxes on cigarettes, and many other governments agencies are looking to follow suit.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Cigarette Taxes Throughout History
- Illicit Trading of Tobacco Products
- Global Smoking Trends- Where Tobacco Companies Make Money These Days?
- 8 States are Tobacco Flunkees: U.s. Flunks on Tobacco Control Report Card
- If Tobacco is a Product Which Can be Sold Legally Then Why Can it not be Advertised?
- Other State Taxes in California
- Learn About Property And Other Taxes In Various U. S. States
- No Tobacco Day
Alternative Minimum Tax Planning Ideas...Year-End AMT Planning Wrap-Up - Part 2
By: George Bauernfeind | 01/01/2010The AMT items that were talked about in Part 1 of this wrap-up generally were the bigger ones that can, depending on a taxpayer’s situation, present immediate year-end Alternative Minimum Tax savings opportunities. But the other items that were discussed in this 10-week series also are important in making sure the least amount of AMT is paid. Here is a brief recap of these other items, with references to the amtblog.com articles in which each appeared.
Alternative Minimum Tax Planning Ideas...Investment - Private Activity Bonds
By: George Bauernfeind | 01/01/2010Municipal bonds, or "muni bonds" as they are commonly referred to, offer favorable tax treatment in that the interest earned on them is not subject to tax. This tax-free yield can make them an attractive investment. If an investor is not careful, however, the AMT can apply to make certain muni bonds fully taxable. Unfortunately, many taxpayers discover this only after making the investment.
Filing your Own Taxes, Preparations and Considerations Part Two
By: Kasan Groupe | 31/12/2009This is a follow up to Filing your Taxes, Preparations and Considerations Part One. Yes, finally! That time of the year is finally here when you can save a little bit of your wages and tuck the rest in a piggy bank. You can raise your glass and jump on your kids’ bunk beds in glee, It’s Tax Season! But have you ever considered filed your own? If not, there are many options to consider. It may or may not be the best route for you.
Filing your Own Taxes, Preparations and Considerations Part One
By: Kasan Groupe | 31/12/2009Yes, finally! That time of the year is finally here when you can save a little bit of your wages and tuck the rest in a piggy bank. You can raise your glass and jump on your kids’ bunk beds in glee, It’s Tax Season! But have you ever considered filed your own? If not, there are many options to consider. It may or may not be the best route for you.
How to Get Tax Help with Your Offshore Bank Account if You Missed the FBAR Amnesty Deadline for IRS Voluntary Disclosure
By: Brian Compton | 31/12/2009FBAR tax penalties can amount to as much as 200-300% of the asset value of the offshore account. If you have an offshore account and missed the IRS's Foreign Bank and Financial Accounts (FBAR) amnesty deadline on October 15th, it’s not too late to have your FBAR tax attorney or tax resolution specialist draft a voluntary disclosure to mount your offshore account tax evasion defense.
Can't Pay Your Back Taxes? Get Tax Help to Make the IRS an Offer They Can't Refuse
By: Michael Rozbruch | 31/12/2009Even if you can't pay your back taxes, a Certified Tax Resolution Specialist who is a tax attorney or CPA, can give you the help you need to settle your debt including negotiating a reasonable monthly payment plan or an offer in compromise settlement that pays a fraction of what is owed. If your IRS bill from back taxes is too much to handle, only a seasoned tax attorney, CPA or Certified Tax Resolution Specialist can provide tax help to show you the proper sequence of events to declare bankrupt
What Are The Roth IRA Limits?
By: Ricky Lim | 31/12/2009Roth Ira is among the best available savings and investments accounts available in the United States. The Roth Ira is very advantageous to users since it does not attract any tax; tax deferments do not apply to this kind of the savings plan.
Free Tax Filing For The Military
By: Chintamani | 30/12/2009Active duty members of the United States Military can have their taxes prepared and filed free of charge. This service is available on military bases worldwide through Volunteer Income Tax Assistance (VITA) personnel.
8 Tax Tips for Veterans
By: Roni Deutch | 29/12/2009 | TaxesMen and women who bravely join the armed forces to defend their country will come home to a whole set of specific tax rules and regulations. Luckily, most of the tax changes for Veterans are positive, since there are several credits and deductions that apply only to them.
How to Survive an IRS Audit
By: Roni Deutch | 29/12/2009 | TaxesThere is nothing more frightening to a taxpayer than checking your mail and seeing a letter from the IRS letting you know that you are being audited. Fortunately, if you follow a few basic tips, you will find that an audit does not need to be as scary as you might think.
Everything you Need to Know About Innocent Spouse Relief
By: Roni Deutch | 22/12/2009 | TaxesWhen you are married, you can either file a joint tax return with your spouse, or you can file separate returns. If you and your spouse file a return together, then you are both equally liable for all taxes during the years you are married, as well as any penalties or interest. However, realizing that there are instances when it would be unfair to hold both spouses equally responsible, the IRS created the Innocent Spouse Relief Program.
Holiday Season Tax Tips From Roni Deutch
By: Roni Deutch | 22/12/2009 | Personal FinanceThe holiday season is in full swing, and while your children’s heads may be filled with visions of sugarplums, yours is probably full of nightmares about the upcoming tax season. The holidays are expensive, and while hitting up the sales rack may save you a few bucks, the real savings this time of year come from strategic tax planning.
The Tax Changes in the Senates Health Care Reform Bill
By: Roni Deutch | 07/12/2009 | TaxesA few weeks ago the Senate Majority Leader Harry Reid and key Democratic leaders announced their highly anticipated health care reform bill, which has already been voted to the debate floor. For those of you who do not remember, the House of Representatives unveiled their plan a few weeks ago. The Senate's bill is supposedly the result of a handful of different bills, and has been named the “Patient Protection and Affordable Care Act” (PPACA).
7 Common Questions About IRS Offers in Compromise
By: Roni Deutch | 07/12/2009 | TaxesOne of the IRS settlement programs that confuses taxpayers the most is the IRS Offer in Compromise (OIC). To help anyone looking for a better understanding about the IRS OIC program, please enjoy the answers to the most frequently asked questions about Offers in Compromise.
Tax Debts and the Taxpayer Advocate Service
By: Roni Deutch | 01/12/2009 | TaxesHave you ever dealt with an IRS representative who is less than helpful? This is a frustrating predicament for taxpayers that just want to put their IRS tax debt behind them so they can move on with their lives. However, it is easy to forget that the IRS is staffed by human beings with all the common foibles of ordinary people.
The Challenges of Being a US Taxpayer Living Abroad
By: Roni Deutch | 01/12/2009 | TaxesIf you thought filing a tax return every year as an American citizen was overwhelming, then you may be astounded to learn how difficult paying taxes are for a U.S. citizen living abroad. All American citizens are required to pay their taxes, regardless of whether they are living and/or working outside the country.