- Cigarette business struggling after increase in tax, manager said
- Cigarette stores in danger of being run out of business
- About 13,000 people have called smoking quit line since Jan. 1
- Customers stocked up on cigarettes before the tax
Some say Wisconsin smokers have it rough.
They've been forced outside to smoke in the blistering subzero weather. Then they were told to move 25 feet away from the doorway. There's talk of a smoking ban in bars and restaurants. But what's hurting Wisconsin smokers most right now is a $1-a-pack tax increase on cigarettes, which went into effect Jan. 1.
The tax, which was previously 77 cents, has made an immediate impact on local cigarette shops, said Azeem Abdul, a manager at S R Tobacco Warehouse, 1928 N. Farwell Ave. The tax has also made an impact on the number of smokers trying to quit, representatives from Smoke Free Wisconsin said.
But customers stocked up on cigarettes from S R Tobacco before the tax went into effect. Customers who typically bought two or three packs at a time were buying two or three cartons, Abdul said.
Since Jan. 1, Abdul said he has seen sales and customers decline as a direct result of the cigarette tax, he said.
"If things continue like this, there will be no tobacco stores left in Milwaukee," Abdul said.
The cigarette tax won't affect chain stores such as CVS, Walgreen's and Wal-Mart, because those stores are selling other products, Abdul said.
"This is the only business we have," Abdul said, gesturing to the cigarettes lining the walls of the store.
He said the tax could be doing more harm than good. Because customers are paying more for cigarettes, they tend to buy cheap brands, which can be unfiltered and more harmful, Abdul said.
Jeff Steinbock, owner of Uhle Tobacco Company, 114 W. Wisconsin Ave., has been an active fighter against the anti-smoking movement.
"The cigarette tax increase hurts the little guys who can least afford it," Steinbock said.
He formed the Cigar Store Alliance of Wisconsin with other cigar store owners who wanted to fight the tax. The group earned a small victory in setting a 50-cent cap on the how much the state can tax per cigar.
The tax will significantly increase revenue early on but with fewer customers, that revenue will eventually dwindle, Steinbock said.
Steinbock said he had one customer purchase 15 cartons of cigarettes before the tax increase went into effect. The cigarettes totaled about $600. The customer would have spent an additional $150 dollars if the purchase had been made after Jan. 1, Steinbock said.
George Koodray, a coordinator for Citizens Freedom Alliance, a non-profit personal rights group, said the tax increase is unfair.
"There is this predatory taxation policy that wants to put the burden on smokers," he said. "It is not a fair approach; smokers are not criminals."
But the tax increase has led to more smokers attempting to quit. The demand for assistance in quitting has soared since Jan. 1, said Maureen Busalacchi, executive director of Smoke Free Wisconsin. Around 13,000 people have called the Wisconsin Tobacco Quit Line (1-800-QUIT-NOW) since the beginning of the year, she said.
"That's about 18 months worth of calls in 18 days," she said. "We normally get 600 a month."
The Wisconsin Tobacco Quit Line is a counseling service where smokers can talk about their habits, desires to quit and set a quit date. Smokers also receive a two-week supply of nicotine replacement to help them quit. The service is free to all Wisconsin residents, Busalacchi said.
She said every year about 70 percent of smokers try to quit. The cigarette tax motivates people to finally quit smoking, she said.