Why your cigarettes may contain kitty litter
Some tobacco companies are adding an ingredient found in it to their products because the extra weight lets them avoid $1.1 billion in taxes.
If the idea of inhaling tobacco products isn't bad enough for many consumers, now comes news that some smokers' products include a kitty litter ingredient.
The reason: by weighing down the products with a clay used in kitty-waste products, the cigarettes are actually classified as heavier "big cigars," reports Bloomberg. With that label, tobacco companies are avoiding a 2,653% jump in a federal excise tax.
The savings to the tobacco companies -- which means less revenue for the U.S. government -- may have totaled as much as $1.1 billion from April 2009 to September 2011, the story notes.
So what exactly is the kitty litter ingredient? Cheyenne International, a private company that specializes in cigars that look like cigarettes, makes a filter packed with a granular clay substance, which Bloomberg identified as sepiolite.
One of sepiolite's main uses is as a kitty litter ingredient because it has a high liquid absorption rate, according to minerals trade group IMA-Europe. Other uses include waste treatment and as an industrial absorbent.
While the Treasury Department told Bloomberg the companies aren't doing anything illegal by making their products heavier, the use of a kitty litter ingredient still carries an "ick" factor.
The main beneficiaries of the loophole may be smaller tobacco companies, according to Bloomberg. Altria (MO), the No. 1 tobacco company, said it didn't change how it formulates its Black & Mild line, while Reynolds American (RAI) doesn't operate in the cigar market, the story notes.
As a result of the new heavier products, a decade-long decline in tobacco usage is slowing, with the Centers for Disease Control and Prevention singling out the weightier products as spurring usage.
The CDC blames the tax loophole for creating demand for the heavier product, which it says "resembles a typical cigarette and can cost as little as 7 cents per cigar." By comparison, a pack of cigarettes in New York state cost $12.50 last year, according to the Awl. That means a single cigarette costs more than 62 cents.
"It shows what length the tobacco companies will go to avoid taxes and regulation that were designed to improve public health without regard to their customers," Danny McGoldrick, vice president of research at the Campaign for Tobacco Free Kids, told Bloomberg.
Kitty litter might not have a long future in the products, however. In January, Senator Dick Durbin (D-Ill.) introduced a bill that would close the tax loophole.
As long as they don't try to put tobacco
in MY kitty's litter product, I don't care.
Maybe kitty litter doesn't cause lung cancer!
A pack of cigarettes in NY at $12.50?! We were offered free cigarettes by civilian salesmen in the army at bases in W. Germany in the early 60s. Five to a pack of Salem, Camel, Lucky Strikes, Marlboro, or Winston on our morning chow trays.. Add litter to all the chemicals found in tobacco products besides addictive nicotine. "Police Call" meant one thing to all of us...walk around the barracks and work areas and pick up butts. Clean out the smelly butt cans and ash trays everywhere.
HERE'S A HEADLINE
AN INGREDIANT FOUND OF URINE IS ALSO FOUND IN TOMATOES, ORANGERS AND GRAPES
JUST TO NAME A FEW FOODS.
EMAIL BLOOMBERG FOR THE ANSWER
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
More Market News
The solid report comes a month after the retailer closed all of its Canadian operations.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'