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dc_dux - The top priced cigars will be going from approximately a $0.05 per cigar rate to the $10.00 per cigar rate cap, that is an increase of 20,000%. It is true that that 20,000% does not apply to all cigars, but the average cigar is considered a 'large cigar' by the new rules and is taxes exorbitantly.
For a real world example, a typical handmade cigar that is imported for $9.00 currently pays a federal tax of $0.04875. If this tax increase is imposed, the new federal tax on this same premium cigar will be $4.6017 -- this is an increase of 9,337%.
Furthermore, the Senate proposal includes a Floor Tax, in which specialty cigar retailers would be required to pay the increased tax on their existing inventory next spring. Requiring specialty cigar retailers to pay tens of thousands of dollars in taxes could force thousands of specialty cigar retailer stores to close nationwide.
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