Sunday, December 6, 2009

11/15-11/21

One Tuesday, numbers were being crunched on the cigarette industry and a strange thing was discovered. The production of pipe tobacco was going through the roof, almost 400% past its normal sales. When investigate further, the peak happened almost at the exact same time as a new law was passed by Obama putting a 1000% tax increase on roll-your-own tobacco. A loophole was found by the tobacco industry, selling roll-your-own tobacco as pipe tobacco, thus saving their business because consumers didn't have to spend all of the extra money on taxes. This was a smart move for the cigarette industry, but now that the government knows about it, they are already in action making the terms clearer on the difference between pipe tobacco and roll-your-own. The cigarette industry will stay not see a hit for a little while, but once the new tax is put into place, expect a small drop in the market.

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