December 31st 9AM-5PM
January 1st CLOSED
January 2nd CLOSED
January 3rd 9AM-5PM
January 4th CLOSED
Thank you for your consideration and as always Thank You for your business!
Wednesday, December 31, 2008
Tuesday, December 30, 2008
THE SCHIP and TAXES ON CIGARS
Dear Customers~
Over the past year you have heard me refer to or write about "SCHIP". While I thought that everyone knew about S-Chip, I continue to get questions about what it is and what it means to Cigar Smokers. So I am going to put it in as simple terms as I can....
The State Children's Health Insurance Program (SCHIP). This is and was a 10 year program that ran from 1997 to DEC 2007 that provided Health Insurance for children of low income families. A low income family under the original bill was a family earning up to 200% of what was determined to be the national poverty level. In 1997 this meant a 2 Parent Family with 2 children under the age of 19 were considered eligible for SCHIP if they earned less that $41,300. As the bill neared expiration in 1997 the Senate introduced legislation to greatly expand the limits. The new S-CHIP that was proposed increased the qualifying income level to 400% of the national poverty level and included children under the age of 25. This would have meant that a 2 Parent Family with 2 Children under the age of 25 earning less than $82,600 would have been eligible for S-Chip benefits!
While there was not much that President Bush did that I agreed with, I will give him credit for this....He Vetoed the legislation twice after it was passed by the Senate.....At the end of 2007, President Bush signed an extension of the current program to cover current enrollment levels through March 2009 so that problematic issues could be fixed in the program prior to further extension. In other words, just like the Auto Bail Out....He punted the issue to the incoming Obama Team! Which proves George cannot only fumble....
He can Punt too!
So what does this mean for cigar smokers and Cigar Retailers, and Wholesalers?
Well folks the picture is not real rosy. Late last fall it looked like the industry had worked out what they thought was an acceptable compromise from the original bill that called for as much as a 10,000% increase in the cost of cigars. The compromise was rumored to be a 53% tax based on the cost of the cigar with a cap of $3.00 per cigar. At the last minute the deal fell apart and now we are looking at a Democratic President and a Democratic Party in control in Washington! While the Cigar Association and our lobbyists are working to negotiate something lower....my guess is that the above will be the low end of the potential increase! I think the $3 per cigar number will get lowered to $1.50, but I think the 53% could go higher to raise the price of the machine made cheaper cigars.....But then what do I know....Who thought my Detroit Lions would finish 0 - 16 this year!
So the bottom line is real simple.....sometime between Inauguration and my guess is June 1st, there will be an increase on the price of cigars to help fund the S-Chip Bill. I also think something else like Beer will be taxed to assist in the funding before it is done. The only thing you can do is plan ahead and make sure you stock up prior to the increase.
Once we know for certain what the increase will be and when it will take place we will notify you ASAP. We anticipate that you should have plenty of notice to stock up on your favorite cigars at that time! The increase will not go into effect overnight, so there is no need to listen the BS of the other suppliers in the industry that are playing the FEAR card on you at this time telling you BUY now! As of today everything is just speculation, the date of the tax increase is unknown, the amount is unknown, and for that matter if there will even be a tax increase is not 100% for certain. In this economy raising taxes on anything is dangerous.
However, as things heat up and the timeline of the current funding expiration date moves closer, the one thing that could happen unexpectedly would be another price increase on the part of the manufacturers. It is my guess that they will do this in anticipation of the tax increase and then at the time of the actual tax increase they will not raise prices the full amount of the tax! If it happens, look for about a 10% increase in February some time.
Ok, now there you have it! You are now as smart as me when it comes to the S-Chip. I wouldn't go around bragging to anyone that you are as smart as me though, but if you are on the ball, you might want to start thinking about where you are going to store an extra 6 months worth of cigars!
Happy New Year and you can count on us keeping you informed.
Cigar Dan
Quality Fresh Cigars, Inc.
CigarFox.com
Over the past year you have heard me refer to or write about "SCHIP". While I thought that everyone knew about S-Chip, I continue to get questions about what it is and what it means to Cigar Smokers. So I am going to put it in as simple terms as I can....
The State Children's Health Insurance Program (SCHIP). This is and was a 10 year program that ran from 1997 to DEC 2007 that provided Health Insurance for children of low income families. A low income family under the original bill was a family earning up to 200% of what was determined to be the national poverty level. In 1997 this meant a 2 Parent Family with 2 children under the age of 19 were considered eligible for SCHIP if they earned less that $41,300. As the bill neared expiration in 1997 the Senate introduced legislation to greatly expand the limits. The new S-CHIP that was proposed increased the qualifying income level to 400% of the national poverty level and included children under the age of 25. This would have meant that a 2 Parent Family with 2 Children under the age of 25 earning less than $82,600 would have been eligible for S-Chip benefits!
While there was not much that President Bush did that I agreed with, I will give him credit for this....He Vetoed the legislation twice after it was passed by the Senate.....At the end of 2007, President Bush signed an extension of the current program to cover current enrollment levels through March 2009 so that problematic issues could be fixed in the program prior to further extension. In other words, just like the Auto Bail Out....He punted the issue to the incoming Obama Team! Which proves George cannot only fumble....
He can Punt too!
So what does this mean for cigar smokers and Cigar Retailers, and Wholesalers?
Well folks the picture is not real rosy. Late last fall it looked like the industry had worked out what they thought was an acceptable compromise from the original bill that called for as much as a 10,000% increase in the cost of cigars. The compromise was rumored to be a 53% tax based on the cost of the cigar with a cap of $3.00 per cigar. At the last minute the deal fell apart and now we are looking at a Democratic President and a Democratic Party in control in Washington! While the Cigar Association and our lobbyists are working to negotiate something lower....my guess is that the above will be the low end of the potential increase! I think the $3 per cigar number will get lowered to $1.50, but I think the 53% could go higher to raise the price of the machine made cheaper cigars.....But then what do I know....Who thought my Detroit Lions would finish 0 - 16 this year!
So the bottom line is real simple.....sometime between Inauguration and my guess is June 1st, there will be an increase on the price of cigars to help fund the S-Chip Bill. I also think something else like Beer will be taxed to assist in the funding before it is done. The only thing you can do is plan ahead and make sure you stock up prior to the increase.
Once we know for certain what the increase will be and when it will take place we will notify you ASAP. We anticipate that you should have plenty of notice to stock up on your favorite cigars at that time! The increase will not go into effect overnight, so there is no need to listen the BS of the other suppliers in the industry that are playing the FEAR card on you at this time telling you BUY now! As of today everything is just speculation, the date of the tax increase is unknown, the amount is unknown, and for that matter if there will even be a tax increase is not 100% for certain. In this economy raising taxes on anything is dangerous.
However, as things heat up and the timeline of the current funding expiration date moves closer, the one thing that could happen unexpectedly would be another price increase on the part of the manufacturers. It is my guess that they will do this in anticipation of the tax increase and then at the time of the actual tax increase they will not raise prices the full amount of the tax! If it happens, look for about a 10% increase in February some time.
Ok, now there you have it! You are now as smart as me when it comes to the S-Chip. I wouldn't go around bragging to anyone that you are as smart as me though, but if you are on the ball, you might want to start thinking about where you are going to store an extra 6 months worth of cigars!
Happy New Year and you can count on us keeping you informed.
Cigar Dan
Quality Fresh Cigars, Inc.
CigarFox.com
Wednesday, December 24, 2008
Join us this Saturday December 20th from Noon-5PM and Meet Gene Arganese the owner of Arganese Cigars
Arganese Cigars is proud to present this exclusive event featuring Joe "Vito" Gannascoli from the Sopranos! Unveiling his new cigar Cugine. All bundles of cigars will be autographed by Gene Arganese and Joe Gannascoli along with a picture! Don't miss this amazing opportunity to meet the men behind the newest cigar from Arganese! We hope to see you there!
*Great buying deals on all Arganese Product!!
*Free 6 cigar sampler with all box purchases!!
*Great Food and Refreshments all day!!
Join us today from 3-7PM at the Cigar Factory Outlet and have your picture professionally taken and printed by the Punch Photo Crew!!
Join us today from 3-7PM at the Cigar Factory Outlet and have your picture professionally taken and printed by the Punch Photo Crew!! Bring your wife, or anyone you would like along for this professional photo op!
If you have yet to attend a Punch Photo Event you have to stop by and check it out, it is a very unique and fun experience!!!
*FREE Punch Cigar just for stopping in!!
*One of a kind buying deals on specially made 10 count Punch boxes!!
*Buy 3 Get 1 FREE on all General Product!!
*Great Food and Refreshments all night!!
Join us today at The Cigar Factory Outlet for some holiday festivities!
Join us today at The Cigar Factory Outlet for some holiday festivities! Nish Patel will be here to share with you all the latest news from the hottest cigar company in the industry...Rocky Patel!
*Stop in and pick up one of the "Limited Edition Rocky Patel Toro Samplers" and receive a FREE Travel Ashtray!!!
*10% off on all Rocky Patel boxes!!
*Great food and refreshments all night!!
*So stop by today from 3-7PM and meet Nish Patel and enjoy some great Rocky Patel Cigars!!
*Stop in and pick up one of the "Limited Edition Rocky Patel Toro Samplers" and receive a FREE Travel Ashtray!!!
*10% off on all Rocky Patel boxes!!
*Great food and refreshments all night!!
*So stop by today from 3-7PM and meet Nish Patel and enjoy some great Rocky Patel Cigars!!
Monday, December 8, 2008
Jonathon Drew is coming to The Cigar Factory Outlet for the biggest party of the year this Thursday Dec. 11th from 3-7PM!!!
Jonathon Drew called up the "Big Easy" and said.. your Cigar Factory Outlet is one of our biggest accounts in the midwest and I have been told that you had the most successful Joya de Nicaragua tasting on their recent tour.. What can I do for you??? So I said come to one of our events...his response... DONE!
*So here are the details.... This will be a fully catered event by Antonio's of Sterling Heights, get a Free Cigar Just for stopping by, Drew Estate will be providing $10,000 worth of giveaways -- including hats, cutters, ashtrays and T-shirts!! WRIF, will be here giving away free merchandise during our event. "Taylor", the WRIF Rock Girl, will be here for autographs and to chat with all you guys!! We will have outstanding pricing across the board on all Drew Estate Products!! Also... This is a once in a lifetime chance to meet a true cigar pioneer, Jonathon Drew! He does not normally do events and it will be truly an honor to have him here!!!
Do not miss this awesome opportunity to chat with the Drew Estate Crew, WRIF, The Cigar Factory Outlet and the World Renowned Jonathon Drew on Thursday December 11th from 3-7PM!!!
*Quick side note...We have rescheduled the Rocky Patel event for next Tuesday December 16th from 3-7 with Nish Patel..So we will see you this Thursday, the 11th, and next Tuesday, the 16th, from 3-7. Thank you for all your support!
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