You may be missing that federal tax is applied at the wholesale level. Most B&M's keystone (double the wholesale price). So:
Old price: $100 box (before state taxes). Assuming keystoning, this implies (guess) an old wholesale price $50, of which $1.22 was tax. So, the old wholesale price net of old tax is $50 - $1.22 = $48.78.
New wholesale price is $48.78 + $10.06 new tax = $58.84
Add back keystone to get $58.84 x 2 = $117.68 new retail price (plus state taxes)
Note, however, that there is no floor tax, so all the cigars in the B&M on March 31st shouldn't change in price. Perhaps one will learn a bit about the business practices of one's local B&M in the next few months. I wouldn't be surprised if most stores do an across-the-board increase on April 1 for all cigars for less than the full tax, and work up to the new rate over the rest of 2009.
What is perhaps funny (for Americans) is that the Cubans have raised their prices in Canada as of March 1st by a similar amount.
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