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U.S., Oregon Raise Taxes On Alcohol, Cigarettes

POSTED: 6:00 pm PDT April 1, 2009
UPDATED: 6:26 pm PDT April 1, 2009

Oregonians who like to smoke and drink were hit hard Wednesday as national and state taxes hit their wallets.

A 62-cent federal cigarette tax go went into effect as well as a temporary 50-cent tax on every bottle of liquor sold in the state.

While the state and federal governments said the revenue is badly needed to keep the country and state running, many people who sell tobacco and liquor weren't happy about it and many of their customers felt the same way.

Behind the counter at Tobacco Town on Wednesday, Tracee Barnhill was the bearer of bad news for her customers as she told them the price of cigarettes had gone up once again.

"A lot of people get irritated at us. They think it's us, but it's all over the country," Barnhill said.

The 62-cent federal tax was added to every pack along with a 5-cent local sales tax.

That means Oregonians are paying a combined tax of $2.19 for a pack of cigarettes, while Washington residents are taxed $3.03 per pack.

Some smokers said they feel like they are being targeted unfairly.

"It doesn't seem to stop. I mean, the price of food goes up too, but not like cigarettes," smoker Daniel Jordison said.

But others saw it as simple motivation.

"It's not a big pain for me. It's just a better reason to quit smoking," one man said.

Angel Wilson, who tends bar at the 82nd Avenue Bar and Grill, said she doesn't think any amount of tax will stop people from smoking or drinking, but she is worried about her job.

"You always hear, I'm going to quit if it hits $5. Or I'm going to quit if it goes to $20 for a fifth. No. They're going to keep doing it," Wilson said.

With the temporary 50 cent per bottle liquor tax taking effect Wednesday, Wilson said she knows her boss is considering raising drink prices and she isn't sure her regulars will stick around.

"It effects me. 'Cause they want to leave and find the cheapest place in town. But at the same time, where do I fit in?" Wilson said.

The Oregon cigarette tax seems like a lot to some, but New York has the highest cigarette tax at $3.76 per pack.

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