Feds Impose New Cigarette Tax, Florida May Too

JACKSONVILLE, FL -- The topic of discussion at lunch was how to fit a habit into a strained budget. Those who smoke are about to pay more for their cigarettes.

"I've been smoking for years," said Jackie Hofts. "It's not gonna make me quit. It's gonna affect my budget, nothing I can do about it."

On Wednesday, April 1, the price of cigarettes will go up 62 cents per pack. It's part of a federal tax hike.

"I've had to change," said Peter Egarhos. "I was a Marlboro Light person, now I smoke whatever is cheap."

Egarhos says he does not think the tax, which will generate about seven billion dollars a year, is fair. "They're just profiling us, making us pay for the bailout, if you ask me."

The government says the money will go to support the expansion of a children's health insurance program.

"If the tax is there to get more money, decrease smokers. I'm for that. I'm sick of smokers," said Brian Peret, who does not smoke.

Smokers are not the only ones who will feel the tax pinch, so will store owners.

Like at Aromas. Here, cigarettes are for sale, but their main business deals with cigars.

"It affects us as well in our pricing ability. When you talk about forty cents per cigar, it adds up quickly," said Mike Young, the co-general manager of Aromas.

But those who buy cigars, like Kevin Bresland, are not too worried about the extra tax.

"I think it's fine. Forty cents on top of a six or eight dollar cigar what difference does that make."

But there is a new concern. In addition to a federal tax hike, Florida lawmakers may raise the state cigarette tax another dollar.

It's a concern for the 2.5 million smokers in the state. "It's just gonna make prices go up more and more, and that's bad for the consumer."

A Florida Senate committee will take up the state tax issue on Tuesday.

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