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Dear "Cigar Factory" Customers:
By now, you've probably heard that on February 4th, President Obama signed the
State Children's Health Insurance Program (SCHIP) into law. On April 1st, this law
raises the federal tax on cigars 800% from a cap of 5 cents per cigar to a cap of 40
cents per cigar.
Originally the tax was going to be higher - the initial legislation last year proposed as
much as a $10 per cigar but, thanks to the efforts of the entire cigar community --
manufacturers, retailers and consumers - the bill that passed was limited to $.40.
Existing state sales taxes are added on top of this for our Texas residents.
In addition, there's been an increase in premium tobacco prices that we're just now
getting passed to us, along with the SCHIP's tax increase. Sadly, both of these
situations means after almost two years of holding prices steady, we're forced to raise
our prices on April 1st.
To keep it simple, on April 1st we're raising our prices $15 per bundle. But, unlike
others, we are NOT increasing our profit margin, just passing along the tax and raw
materials costs. Our assortment packs will also increase proportionally.
We appreciate your passion for our cigars, Key West and The Original Key West Cigar
Factory, and hope to have the opportunity to share a cigar with you personally.
And, as always, we appreciate your loyalty and support.
Dave & Stan
KWCF
Link to CRA Federal News
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Click the link below or copy and paste it into your browser to view Cigar Rights of America's article on the SCHIP law.
http://www.cigarrights.org/news_FED.htm
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