Category : Breaking News

Milking a Dry Cash Cow

Well, once again, I have been caught asleep at the switch. Back in July, U.S. Sen. Tom Harkin, a Democrat from Iowa, introduced a bill that if it is passed and signed by President Obama will wreck the pipe tobacco industry.

The bill has the support of 13 other Senate Democrats. You got to wonder, “What are they thinking, if they can think.” This nation needs a complete overhaul of its political system. Not just a fix. It needs new everything, in my humblest of opinions.

But, I am off track. This epistle has nothing to do with the innards of politics today, but everything with specifics.

My apologies for not seeing this sooner. I am making no excuses, but I read newspapers everyday in print and online. If this made it in our local newspaper, I missed it. Likewise, I missed it online as well and I read several online newspapers daily as well.

What I am saying is that once again, it appears the mainstream media, which once was the mighty newsprint industry, failed to report a significant issue.

Sen. Tom Harkin, a Democrat from Iowa, who really brings home the bacon for his state—just look up his pork report—has now set his sights on funding the federal disabilities act for disabled children, which Congress approved more than three decades ago. It just never got around to funding the thing.

Note: I have created another “page” where you can read the entire act. Or, you can go to Thomas for the whole enchilada.

Now, before you haul me off to the disabled children’s agents for quartering, I want every disabled child in the nation to be helped. I can carry you to some of the most pitiful places on earth in Appalachia and show you disabled children who never get a solitary dime from anyone. So, don’t talk to me about helping. This big-time happy yak of helping the disabled needs to start at home. I have seen the bleakest of the bleak in Appalachia, and it is a disgrace to this nation the life some of those people live.

My newspaper reporting, in fact, for several years fell on deaf ears. I am hard-nosed when it comes to this, so if you want to argue with me about helping the poor and disabled you best bring your lunch and some experience.

I digress. Congress did its usual two-step with the help for disabled children bill several decades back: It passed a bill and then passed payment on to the next generation.

And now Harkin has gotten the idea that he can completely fund the Individuals with Disabilities Education Act (IDEA) and stop you from smoking your pipe or cigar at the same time. That’s a “win-win,” one of the worst word descriptions I have ever read, as some would say in Washington.

I have read the bill and how it heaps tax increases upon all smokers, and yes, pipe smokers you are included this time. No dodging this one for you.

Harkin’s bill, officially alive as SB 1403, would destroy the tobacco industry as we know it. Oh, maybe he hadn’t thought of that, because tobacco taxes from his bill are how the senator plans to fund the IDEA.

Here is what happens under his proposal:

(1)  Excise tax on SMALL CIGARS- goes from $50.33 to $100.50.

(2) CIGARETTE taxes take a double whammy of heading up from $50.33 to $100.50, and from $105.69 to $211.04.

(3) Harkin’s Tax Parity for Pipe Tobacco and Roll-Your-Own Tobacco would send pipe tobacco from $2.8311 per pound to $49.55 per pound. Mind you, we are talking merely the tax on a pound of pipe tobacco, not the retail price. Manufacturers and retailers are on their own as to how they get their money.

If Harkin assumes that he will fund the IDEA through this scheme, he has been smoking something other than tobacco.

These kinds of taxes will demolish the tobacco industry, taking down his revenue stream with it and will put thousands of people out of work at a time when the nation is desperate for jobs.

If I were running for office, my only political placard would be, “It’s Jobs, Stupid.”

Not only does Harkin’s act of incredible stupidity destroy an American industry, it also takes out the hundreds of thousands of people who are part of the Dominican Republic-Central America-United States Free Trade Agreement, or known by its initials as CAFTA-DR.

Friends, CAFTA isn’t small potatoes. The region includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. It is a very large trading partner with the U.S., regardless of what you think of free trade agreements.

You cigar smokers will recognize those names right off. The big kahuna left off of any trade agreement, of course, is Cuba and one of these days the U.S. will come to its senses and realize that the cold war is over, Fidel is really a sick old man, his brother Raoul is a numb nuts and we should be trading with the nation that is so broke, its best car on the lot is a 1956 Chevy.

And, by the way, Cuba isn’t hundreds and thousands of miles away. It’s a boat ride from Miami. Get real. You mean to tell me, a nation the size of a spaghetti noodle remains some sort of a threat to the U.S.?

And while you have read this far, you might as well peruse this: The CAFTA-DR region was the 15th largest U.S. export market in the world in 2010, and the third largest in Latin America behind Mexico and Brazil. The United States exported $24.2 billion in goods to the five Central American countries and the Dominican Republic in 2010, an increase of 21 percent over 2009. That is money in the pockets of American business enterprise.

For the five-year period that CAFTA-DR has been in force (2006-2010), U.S. exports grew by 43 percent, which compares very favorably to the 25 percent growth experienced during the five years (2001-2005) before CAFTA-DR.

U.S. exports to all the CAFTA-DR countries have experienced significant growth during the first five years of the agreement, led by Guatemala and Nicaragua (both up 57 percent), followed Costa Rica (44 percent), Honduras (42 percent), Dominican Republic (39 percent) and El Salvador (32 percent).

I think you are getting the picture. We are about to shoot off our toes and feet with Harkin’s hair brain IDEA. A majority of the U.S. cigar market depends upon the names you just read. We are about to put thousands of those people out of work because U.S. taxes have been hoked up by some halfwit politician (a career pol who has been in the U.S. Senate since 1984, and was in the U.S. Congress before that beginning in 1974).

And, yes, this comes at a really critical time in American history. The jobless rate is running over 9 percent. Today, something like 53 million children in America live in poverty, more than ever before, because both parents are out of work.

If this sort of numb skull political bill, which is a bone to the educational lobby, and the Americans with Disability Lobby, who have actually said that Harkin’s bill will “fully fund” the IDEA with no consequences, and at no cost to the American taxpayer, gets by then coming around the bend is an economic monster that will make the Great Recession look like the Great Recess.

No consequences? No cost to the American taxpayer? Now, dear reader, you can see that your tax dollars for public education in the past decades have failed. It produced idiots whose deductive reasoning powers are in the minus wattage.

Dropping this load of tax increases on the already staggering tobacco industry will simply finish it off, wiping out thousands of jobs, closing thousands of retail outlets, shuttering thousands of manufacturers, creating a huge joblessness in the CAFTA nations, and affecting a choking impact on America’s trade deficit and the GDP (that’s gross domestic product for those of you anti-tobacco zealots who have a hard time understanding economics 101).

So, if you are a smoker of any sort, and you want to continue to be a smoker, you need to read this, and then get busy contacting your congressmen and women. You need to tell them that Harkin is a hair ball, and that if you think the past few years have been bad, wait until you shut down the tobacco industry, and force it to go on the black market, where the federal government receives zippa in taxes.

That’s because, for those who are not too street wise, black market sales never happen on anyone’s books. Strictly cash and carry. No records or nice sales slips and tax forms. Your state treasuries will love this result.

I am truly amazed at the depth of stupidity in Congress. I am also astounded that the mainstream media has lost its chones to face up to its responsibilities as the last bastion of hope for the little guy, for mom and pop and apple pie.

I am proud that I was a newspaper reporter under the old breed: they would kick your ass and challenge you to a fist fight outside the bar. They wrote both sides of the news with all the facts, because frankly their reporters were afraid for their asses if they had the facts wrong. You got it right or got gone. You got it first or you were the first out the door.

You were tough or some old man twice your age would break your head with a glue pot. And if a reporter could get through that gauntlet, his editor knew his reporter would be fearless when he had to tackle the real crooks out there in zulu land at the county courthouses, the city councils and the school boards, where people were attaching their sticky fingers to taxpayer’s hard earned dollars.

Those days are gone. You, dear reader, are the loser. And so is our nation.

You can either vote Harkin and his kind out of office (that would be any Senator who has been in the U.S. Senate more than two terms, which is 12 years, and any Congressman who has had six terms, which is also 12 years.

Or, you can watch your favorite pastimes disappear, along with your rights, one by one. And, you are picking up the tab.

In 2011, rank and file Congressmen and women in the U.S. House and Senate receive a current salary of $174,000 per year, plus office expenses for bloated staffs, plus health insurance, some for life. And, you are also picking up an enormous tab for Congressional pensions, also lifetime for many of the career pols.

Are you getting the picture that the fox is in the hen house and the American taxpayer is getting plucked?

Tobacco was once America’s largest and most important cash crop. Today, it is a cash cow for politicians.

And, folks, that cow is running on dry.Pipe Icon

Deepest of Doodoo!

Well sports fans, it has happened. Your federal government and the Food and Drug Administration have released those absolutely horrible and disgusting pictures that will appear on packets of cigarettes. That’s coming to a retail outlet near you soon.

The New York Times had the news story this morning. If you haven’t seen the upcoming package photos, go here. If this doesn’t shock you, then nothing will.

The images are the product of the anti-tobacco campaign against smokers of all stripes. I know the argument that this is just for packages of cigarettes. Believe me, pipe tobacco tins and packages, cigar boxes and labels, won’t be long in receiving the same treatment. Bet on it.

Smokers of anything will soon be so ostracized that you’ll be lucky to smoke in the confines of your home, or in my case the outside deck. I am waiting on Real Estate laws to change that say if you have smoked inside your home, you will have to pay some sort of fine.

These images are outrageously bad and come to you via the Campaign for Tobacco Free Kids and similar well-funded anti-smoking outfits.

We pipe and cigar smokers are in the deepest of doodoo. If you fail to see the wisdom of that, just think about how long it took FDA to come up with these images, get federal law written and changed and signed into reality. About a year, tops.

But, not to worry. Your tax dollars are at work. They just aren’t going after some other products with the same zeal. For instance, how do you like eating genetically-engineered tomatoes? Hey, I’m not an organic nut job. I love tomatoes, especially Grainger County (Tennessee)  Tomatoes and Vidalia, Georgia onions slathered with mayonnaise between two pieces of bread.

But, the point is, your drinking water isn’t safe, either. It is laced with enough chemicals to dissolve a train engine.  Your foods from the grocery store aren’t safe. That fruit you are eating from Costa Rica was probably sprayed with DDT or some other chemical outlawed in the U.S.

Hey, don’t fret. The FDA is watching over you!

If you are not buying and hoarding pipe tobacco and cigars, then you are not paying attention. If you don’t have a humidor or a cellar full of Ball glass jars filled with tobacco, you will be left at the loading dock when the last bales  of tobacco are shipped out to be burned in large piles

This is serious business.

I talked to Joyce White, whose tobacco ancestry goes back to Royal Cigar in Atlanta, the other day. She told me not only are the rules inside the U.S. becoming so stringent that it is hard to make a living selling pipe tobacco, but also rules governing foreign tobacco manufacturers are biting down hard.

Yes, boys and girls, a new day is upon us. The large media types are not on our side. Big Media has forgotten how to publish both sides of an issue. It is up to you to find out for yourselves. PSI tries to help.

But that’s like pushing a boulder uphill with a string.

The handle is coming off of the pump.Pipe Icon

 

Maryland Loses Its Mind . . . Revenue to Follow

I am just now reading a disturbing note from PipesMagazine.com about Maryland and what it is doing to pipe tobacco specifically and to tobacco in general. That is because I am a little behind in everything right now.

PM’s Kevin Godbee, owner and publisher of the online pipes and tobacco magazine, brought this to attention in one of his blog posts. If you don’t know PM, you should. Here you will find the latest pipe and pipe tobacco news, features, photos, blogs, just plain good stuff for the pipe smoker.

Godbee wrote about Maryland and its heretical shenanigans the first of March. It’s enough to make a pipe smoker cry.

Until 2000,Maryland had a 370-year history of tobacco farming. Then in 2000 almost 90 percent of the state’s tobacco farmers said they would accept a government buyout, and plant tobacco no longer. They had had enough harassment from the state and federal agents and government interference in their livelihood.

The crop that had settled the Chesapeake was now seen as a health hazard.

By 2003, Maryland had begun the buyout program. Farmers agreed to plant alternative crops instead of tobacco. By 2004, some 785 growers were in the buyout program, representing 80 percent of eligible growers and 7.3 million pounds of tobacco.That action took a lot of top grade pipe tobacco off the market, forcing manufacturers to look for pricey overseas sources.

If you know your tobacco history, you know that at one point in Colonial times, tobacco was better than the gold standard. It was used as currency to trade with England.

Now for today’s update. The state of Maryland has lost its mind. No, really.

First, the state is preparing to increase tobacco taxes by 500 percent.

The next move is even worse. The Maryland legislature has passed a law that takes effect May 1. The law will prevent the online sales of pipe tobacco. In order to sell pipe tobacco and premium cigars in Maryland, you must be an OTP licensee, or OTP (other tobacco products) and have a physical presence in the state.

As if that is not enough, in a Q&A fact posted by the state, it lays it out in plain English:

Is it illegal to sell OTP to consumers by mail or over the Internet?

OTP may not be sold to consumers in Maryland by mail or over the internet. Maryland consumers must purchase OTP from a licensed OTP retailer or licensed tobacconist.

Let’s see, how should one phrase this sort of thing? Restraint of trade comes to mind. Restricting freedom of choice comes to mind. Loss of choice, loss of freedom, living in a bizarro world, this is no longer America, also come to mind.

If you have been on another planet for the past few years, it might come as a shock to find out that tobacco in the United States and the world is under siege, if not full blown attack.

Antis across the globe are out to kick tobacco into the dustbin of history.

And this comes at a time when states, cities, towns are desperate for money to balance battered budgets.

Well, here is a news flash for the antis, who might be feeling the squeeze of higher prices at the gas pump, higher prices in the grocery stores, clothing stores, etc., etc.: you kill tobacco, and you haven’t seen nothing yet concerning price hikes.

Count on it. And, by the way, you won’t ever get rid of tobacco. It will be around on a black market forever, depriving states, cities and towns any revenue from it. Count on it. No one, and I mean no one, I know is going to give up their pipes and pipe smoking just because the federal government says we have to.

Here’s why: Raise your hands those of you who trust your federal government and its agencies to tell you the truth about anything!

The Antis can take that one to the bank. Or put it in their pipes and smoke it!

I suppose most of you have heard of the Southern part of America and its fascinating association with illegal whisky. You will also note that in the South, we still purchase same.

You will have a similar arrangement with tobacco if the antis win. This, too, will deprive states, cities and towns of even more tax revenue.

Check out Godbee’s piece and another post about Florida banning smokers in the great outdoors here.

There They Go, Again

There they go again.

The FDA is flexing its muscles and focusing on new tobacco products. In a press release today (Jan. 5, 2011), the FDA said that “certain tobacco products introduced or changed after Feb. 15, 2007, must be reviewed by the agency.”

In the FDA guidance published today, the agency outlines a pathway for marketing a product whereby the company marketing the product must prove that it is “substantially equivalent” to products commercially available on Feb. 15, 2007. 
 
“Substantially equivalent” means the products must be the same in terms of ingredients, design, composition, heating source and other characteristics to an existing, single predicate product or have different characteristics, but not raise different questions of public health.”

Oh, so if a belligerent Anti says that the tobacco from a flue cured barn in Kentucky or Tennessee was heated to a different temperature than last year, that throws open the whole thing to be investigated.

Or, seen another way,if the same BA says the tobacco characteristics have changed due to soil content, then the manufacturer will have to prove that it is the same product it had on board for three years?

Oh, yeah, that’s fair.

How about this: Why doesn’t the federal government require that the FDA “substantially prove” that tobacco products delivered by a pipe is the same as smoking a cigarette?

Here is another example of Big Government attempting to social engineer a product and at the same time encouraging states to increase excise and other taxes to help balance budgets that have been ripped to shreds by federal mismanagement.

For more on this, go to the FDA’s website.

I’m disgusted with the whole system.Pipe Icon

PSI Explores DoS

It’s been nearly three months since Smokingpipes.com, one of the internet’s most popular retailers specializing in pipes and tobacco, was temporarily shut down by a costly denial-of-service attack but company president Wilford Sykes says that he’s not overly worried it will happen again.

“The thing about DOS attacks is that they are very rare,” Sykes said. “When you’re a company our size, you’re not really on anybody’s radar for this kind of stuff.”

The September 13 attack on the company’s cyberspace infrastructure might have cost the company tens of thousands of dollars in lost sales, but Smokingpipes.com employees were able to patch together a solution that got its Web traffic back on track within 30 hours of the assault, Sykes said.

Because other tobacco-oriented companies were also hit during the attack, some have speculated that anti-tobacco zealots might have been behind the effort to temporarily shut down the Web sites.

Sykes, however, said he doesn’t think there is anywhere near enough evidence to accuse anti-tobacco groups of engineering the DOS attack.

“It’s (DOS) technically fairly complex,” he said. “As far as who did it, we can only guess who did it. The fact that it was us and other premium tobacco retailers suggests it may be someone in that department (the anti-tobacco movement)…. The whole point of DOS attacks is that they are anonymous. It’s almost impossible to trace who did it.”

According to Sykes, whoever engineered the attack was able to swamp the Web site by overwhelming the amount the company’s server can handle with bogus hits.

“Normally, when someone requests our page then we give them all of the content – pictures, text, and the like,” he said. “Now imagine 10,000 people trying to request that information simultaneously. That is not a problem we would deal with in the real world.

“Then, those same 10,000 continue to send those requests … but our hardware just cannot do that. We got the traffic that CNN’s Web site might get! There’s no way for us to differentiate between the bogus traffic and the real traffic, and we had tens of millions of requests over a period of hours.”

Sykes and his staff responded by replacing the company’s main page with a “splash page” that offered visitors only a 20th of the data as they would normally receive and then moved the Web site to another server at another domain.

“That was a very cluttery, hackerish way to deal with it,” Sykes said. He went on to explain that while there are systems available that can weather similar DOS attacks, they are very expensive and his company’s long-term plan “is to be able to identify an attack and move faster.”

Sykes again stressed that there’s no way to know who launched the attack.

“This sort of thing happens — it’s the Internet,” he said. “Internet security is a giant ongoing game between the good guys and the bad guys. Companies large and small engage in this particular game.”

In 2007, he explained, a massive DOS attack shut down Web traffic for the nation of Estonia’s Web site, triggering a costly investigation that ultimately yielded only vague results.

“In Estonia, the best and brightest that NATO could do was to say it came from Russia,” Sykes said. “We’ve had so many people say, ‘Why didn’t you go the FBI?’ The answer is because there’s nothing they can do.”

A more detailed account of the attack and how Sykes and his employees ultimately thwarted it can still be read in the blog section of Smokingpipes.com.