Do you have adblock enabled?
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(The Morning Call)   Pennsylvania could lose $320 million in tobacco settlement money because the state didn't do enough to help the big tobacco companies sell more tobacco in PA. *cough* Tobacco   (mcall.com) divider line 13
    More: Stupid, Pennsylvania, big tobacco, mandatory spending, R.J. Reynolds, uncompensated care, 46th state, tobacco, Lorillard  
•       •       •

3981 clicks; posted to Main » on 12 Jan 2014 at 1:13 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



Voting Results (Smartest)
View Voting Results: Smartest and Funniest

2014-01-12 01:22:54 PM  
4 votes:
I really like how 98% of the tobacco settlement has been used for non-tobacco related things.
2014-01-12 01:25:05 PM  
3 votes:
Leave it to PA to fark up a simple money grab. That is all this ever was. Any alcohol companies paying out for drinking related problems? Nope.
2014-01-12 10:45:12 AM  
3 votes:
I think I understand the crackdowns on e-cigs now
2014-01-12 01:46:01 PM  
2 votes:
Pennsylvania has had a string of poor governors, including the current governor who decided to defend pedophiles. Neither party can seem to find someone who can walk and chew gum at the same dime. It doesn't surprise me.
2014-01-12 06:35:03 PM  
1 votes:
There are a lot of people who think cigarettes are expensive because of government taxes.

Let me tell you from someone who knows the industry better than most people... That's bullshiat. That is literally exactly what the tobacco companies want you to think.

Let's say the government increases the tax on each pack by five cents. The tobacco companies pass this on to their customer - the stores that sell them to you - as a 25 cent markup per pack.

They do this consistently, have done that for many years. Every price increase the tobacco companies make is hidden behind a much, much smaller government tax, which takes the blame.
2014-01-12 04:45:23 PM  
1 votes:

hchaos: Also, near as I can tell (my reading comprehension skills may be off, or the article may be horribly written, I can't tell these days), it isn't because they failed to help sell more tobacco, but because they were lax in enforcement against small tobacco companies, which lend's credence to astouffer'sargument that this is a simple money grab, and which the tobacco companies' lawyers were smart enough to bet on.


It's not you, this is a long and very confusing article. As far as I can tell, a few years ago, big tobacco companies signed an agreement with states to pay them a set amount of money, and in exchange, the states would no longer be able to sue them for smoking related costs to medicare programs. But since only big tobacco companies signed the agreement, there were a lot of smaller companies that essentially got a free ride under the deal. So part of the agreement was that if those big companies lost market share to smaller companies who weren't forced to pay, and it was found that the states did nothing to stop this, they could cut their payments. States were supposed to be diligent in suing or otherwise hurting the profits  of small tobacco companies because they were still eating medicare costs without paying any kind of compensation. If they didn't, it's their own fault they're now losing big tobacco money.
2014-01-12 04:25:24 PM  
1 votes:
Also, near as I can tell (my reading comprehension skills may be off, or the article may be horribly written, I can't tell these days), it isn't because they failed to help sell more tobacco, but because they were lax in enforcement against small tobacco companies, which lend's credence to astouffer'sargument that this is a simple money grab, and which the tobacco companies' lawyers were smart enough to bet on.
2014-01-12 03:03:25 PM  
1 votes:
TFA fills me with contempt for everyone involved.

/Fark this ass-backwards Commonwealth
2014-01-12 03:03:02 PM  
1 votes:
1. Sign an agreement to receive money from Evil Tobacco.

2. Fail to follow the agreement because, well, Evil Tobacco is evil and who should care?

3. Complain because you failed to follow the agreement and won't get money.

 i.imgur.com
2014-01-12 01:32:29 PM  
1 votes:

MaudlinMutantMollusk: I think I understand the crackdowns on e-cigs now


This, this and THIS ^^^^^^^^^^
2014-01-12 01:27:06 PM  
1 votes:
So wait. The tobakkie companies are now blackmailing the states into making more of it's own citizens get lung cancer?? Dafuq?

That's some real comic book super-villainy there!
2014-01-12 01:16:30 PM  
1 votes:
LOL. "Partnership"
ZAZ [TotalFark]
2014-01-12 09:48:52 AM  
1 votes:
The signing tobacco companies in 2006 began withholding some of their payments to the states, claiming those states weren't taking diligent action against those smaller competitors, including small-name brands and roll-your-own tobacco providers.

In New England roll-your-own stores have been targeted within the past five years. Possibly enforcement was in response to the big companies' threats to cut payments. The desire for direct tax revenue is also a plausible motive.

That increased the potential hit to Pennsylvania to an estimated $242 million, the state said in court papers filed in December by Kane's office. The reduction in funding would force the state to "defund many of the public programs" that rely on tobacco money, the court papers said.

I wish we had a good way to make threats binding. Politicians vote that some program can't have any money except what is available through a particular revenue stream. Under business as usual rules they divert money from other funds if their bluff gets called.
 
Displayed 13 of 13 comments

View Voting Results: Smartest and Funniest


This thread is closed to new comments.

Continue Farking
Submit a Link »
Advertisement
On Twitter






In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report