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Well, they are at it again, this time in New Hampshire, where the states motto is “Live Free or Die”.

There is a bill pending that would increase the tax on cigars in the state based on a stores inventory level. The Legislature is proposing a 60% tax on the wholesale cost of cigars and retailers would have to pay the tax based on their inventory, not at the time they sell a cigar to a customer. So if a cigar store has $100,000 in wholesale cost of cigar inventory, they would have to cough up $60,000 just to stay in business. One of the largest stores in New Hampshire, “Two Guys Smoke Shop” have come out and have made it clear they will close the doors if this law is enacted as they won’t be able to pay the tax.

Our Take: This is just another example of lawmakers using the tax code to run businesses that they don’t care for out of business…more of a social statement by them than a revenue issue for the state. You would think that businesses that create jobs in a state would be something that the state would want to support since they would be deriving numerous taxes from a single businesss….property tax, sales tax, state income tax, etc. But not in New Hampshire, they would rather kill an entire industry rather than support hard working people who create jobs and businesses. Someone once said a long time ago….”The power to tax is the power to destroy“. Seems that is the only plan the lawmakers have on their mind right now.

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