August 08, 2013

Fiscal fiascos and golden geese


Nothing affects retirees more than taxes, and Miriam - who has worked in government services all of her life and has just retired on a very nice pension paid from taxpayer funds – predicts a huge rise in taxes will soon be implemented to offset the loss of revenue from people quitting smoking.

"I don't think the average person appreciates just how much smokers in our community have been contributing towards the government's coffers," says Miriam, "but they will find out for sure when increased taxes kick in as more smokers cut down or quit".

"The government has been deliberately low-key about this aspect of smoking control, and with good reason," says Miriam. "If it told all the non-smokers that its spectacularly successful quit-smoking program would ultimately result in a fiscal fiasco necessitating huge hikes in taxes I truly believe there would have been demands to stop smoking controls being enforced."

"I think most people can tolerate smokers better than they can tolerate additional taxes!"


"I'm not just talking about the inevitable extra taxes on tobacco products -- I'm talking about unavoidable taxes."

"Why do you think the government staggered the implementation of smoking controls in the British Isles -- leaving England, with the most smokers, last?" asks Miriam. "If England had been included in a blanket control on smoking, the government would be broke now."

"That's how much the government needs smoking dollars," explains Miriam. "From now until the next election there's enough in the coffers to tide the government over, but in coming years the fiscal fiasco is going to hit us hard."

"Government services have been dropping in standard for years and the government is going to tell us, with the usual spin, that if you want things to improve you have to pay more tax -- or suffer a reduction in wages, even lose your job."

"It won't tell us that the main reason it has run out of money is because so many people have quit smoking and are no longer paying the lucrative tobacco tax which has been used to run the whole country for decades."

"I never minded paying tobacco tax because after all I was merely paying the government money that it paid me back in wages," laughs Miriam, "but I think it would gall most people -- especially non-smokers -- to know that their cherished government services have been run largely on tobacco tax."

"I was told once that up to 90% of the cost of a pack of cigarettes is tax -- imagine paying a similar percentage of tax on petrol, alcohol and other necessities of life. Not nice, eh? But hey, smokers have copped that sort of financial discrimination for decades now."

"The first thing that is going to get reorganised is the NHS -- you're going to have to pay private health insurance just like the good old USA and forget about the payments you've already put in to ensure health care," warns Miriam. "More people quitting smoking means more people living longer and becoming incredible burdens on government services and pensions in old age."

"Oh yes, forget the red herring about the savings to the NHS when smokers quit," adds Miriam."The extra cost of treating the so-called smoking related diseases has been estimated at approximately £1.5 billion a year. What sort of savings is that compared to the £6.5 billion -- even £13.5 billion -- in tobacco tax that the government will lose every year if all smokers quit?"

"You don't have to be a genius to work out that as more people quit, less revenue is coming in and this money has to be recouped from non-smokers," says Miriam. "The tax hikes could possibly be so high that non-smokers may join the smokers in lobbying for the smoking bans to be overturned!"

"Fat chance of that happening," laughs Miriam. "Now that so many billions have been spent bringing in smoking controls -- and more billions are going to be spent enforcing them -- there is no way the government can repeal the law and besides which, in case you're unaware, the government listens to global masters not the people."

"We're stuck with smoking controls and a loss in revenue whether we like it or not and a hike in taxes is inevitable."

"Paying more tax means less money for discretionary spending, and a lot of small businesses will fold, jobs will be lost and young couples will lose their houses."

"I don't want to sound like an old groaner," laughs Miriam, "but it stands to reason that if the government kills the golden geese -- the tobacco tax paid by smokers -- we're going to suffer some nasty repercussions."