California Prop. 86 is a $2 Billion Tax Hike aimed right at cigar smokers.

HIGHER TAXES AND BIG BUREAUCRACY WILL KILL LOCAL BUSINESS
The new TAX will hit California tobacco retailers the hardest. An 88% tax on current inventory will close many local, independent retail cigar stores. In other words, if your local retail cigar shop carries an inventory valued at $100,000, they'll be hit with a NEW TAX of $88,000. With no relief, these taxes will be due immediately, payable by February 15. Many local retail cigar stores will be forced out of business.
• The new Prop 86 tax on cigars specifically will increase from an already high percentage (nearly 47%) to a staggering 135%. In plain english, effective January 1, 2007, a cigar that currently sells for $8.50 in California will be priced at more than $17.00.

TAX HIKE IS A MONEY GRAB!
Prop. 86 is an unfair tax increase supported by special interests who are amending our Constitution and statutes to benefit themselves. Prop. 86’s proponents say it is about encouraging people not to smoke, but it isn’t. It’s really a money grab by huge corporations who will reap hundreds of millions of taxpayer dollars each year, and spend the new tax money any way they like!
• Prop. 86 throws millions of dollars at new bureaucratic state programs without adequate legislative or governmental oversight. There are NO GUARANTEES how the money will actually be spent, or assurances the money will not be wasted.
• At least 38 different bureaucratic, government agencies and corporations are grabbing at the new tax money.
• Less than 10% actually goes toward helping smokers quit or keeping kids from starting.
• HMOs will get millions each year from Prop. 86.

THEY WRITE NEW RULES TO BENEFIT THE NEW TAX
Under California law approved by voters (Prop 98), 40% of any new taxes are dedicated to our schools. Prop 86 includes a CONSTITUTIONAL EXEMPTION that says NONE of these funds will go to our schools.
And, they've included provisions that won't allow changes to these new tax hikes on future ballots.

Vote against big government! Vote against new taxes! Vote for our right to smoke (a fairly taxed cigar)! Save small business and VOTE NO ON 86!