Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

New SCHIP Bill—Federal Cigar Tax to Be Capped at 40 Cents [up from 5 cents, that's my pie?]
Cigar Aficionado ^ | 2-8-09 | David Savona

Posted on 02/08/2009 1:02:05 PM PST by SJackson

The House Ways and Means Committee introduced the newest incarnation of the State Children's Health Insurance Program (SCHIP) today. The International Premium Cigar & Pipe Retailers Association (IPCPR) reported in an email that the legislation would impose a revised federal excise tax on large cigars—52.4 percent, with a maximum tax cap of 40 cents per cigar.

It was feared throughout the cigar industry that the cap would be much higher. The original version called for a $10 cap, and earlier versions had a cap of $3 per cigar. The tax is currently capped at five cents.

The bill, which seeks to fund an expansion of SCHIP with higher tobacco taxes, is expected to pass given the new Democratic leadership in Washington. Last year, Congress attempted to pass the expansion, but President Bush vetoed the legislation two times, most recently in December.

"Our industry came together to aggressively challenge the disastrous, proposed $3 tax cap," wrote Chris McCalla, legislative director of the IPCPR, in the email.

The new legislation also does not have a floor tax on cigars, although certain other tobacco products would be subject to the floor tax.


TOPICS: Government; News/Current Events; Politics/Elections
KEYWORDS: bho44; pufflist; schip; taxincrease
LETTER TO EDITOR: Brutal S-CHIP tax provisions

Thursday, February 5, 2009

http://www.washingtontimes.com/news/2009/feb/05/brutal-schip-tax-provisions/

I support providing health care for children. However, the tax provision in the State Children's Health Insurance Program (SCHIP) bill will have devastating, unintended consequences.

Our little family-owned, 115-year-old cigar factory will not be able to sell enough at the increased price to remain open, and our 59 employees, half over 50 years of age, will become unemployed. The brutal tax burdens from SCHIP will crush the small cigar businesses and the roll-your-own cigarette businesses. Thousands of American jobs in the myriad of support businesses such as tobacco growing, tobacco processing, package manufacturing, transportation and sales operations will be lost.

I am proud of our new president and his repeatedly proclaimed intent to preserve and create jobs in the United States. Someone in his group has failed to recognize the loss of thousands of jobs resulting from the tax provision in SCHIP.

We have seen a $700 billion bailout bill passed in the House so far and proposals for a bill of another $825 billion to $1 trillion stimulus package.

There has been no mention of new taxes to fund any of these. The SCHIP bill is the only spending bill I am aware of that has a tax, and it is a brutal one. The new administration could propose a suspension of the tax provision in the SCHIP bill and fund it the same way as the bailout and stimulus package and save thousands of American jobs.

BILL FINCK

San Antonio, Texas

1 posted on 02/08/2009 1:02:05 PM PST by SJackson
[ Post Reply | Private Reply | View Replies]

To: SJackson

If you support health care for children, put your money where your mouth is and support it with your own money, and leave the taxpayers out of it.


2 posted on 02/08/2009 1:06:29 PM PST by Daveinyork
[ Post Reply | Private Reply | To 1 | View Replies]

To: SJackson
Americans are going to be dropping like flies from "secondhand smoke" just so the Commie 'RATS can give "free" healthcare to illegal aliens. This administration is a disgrace. Shouldn't they be banning tabacco instead of taxing it?
3 posted on 02/08/2009 1:06:47 PM PST by FlingWingFlyer ( Elections have consequences.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SJackson

Well Bill, your 1st mistake is to be proud of your illegitmate president. Maybe if you would & could have influenced a few persons this know-nothing would not be today in the power to screw over your business.


4 posted on 02/08/2009 1:08:51 PM PST by Digger (If RINO is your selection, then failure is your election)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SJackson

I’m a pipe smoker and collector, and I support your efforts to keep your cigar business open. I think this tax will devastate the mom and pop cigar and pipe shops. I know of at least one shop that has closed in anticipation of this tax.


5 posted on 02/08/2009 1:09:19 PM PST by Daveinyork
[ Post Reply | Private Reply | To 1 | View Replies]

I thought I was getting some pie.

No one told me they were going to tax the pie tin.

And no, I wouldn't eat either of those, they look like something my dogs ate yesterday, and expelled.

6 posted on 02/08/2009 1:09:31 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 1 | View Replies]

To: martin_fierro
For your list.

The nice part of this, it hits consumers at the lower end. Don't want to harm Bubba, or The One should he trade in his cigarettes.

7 posted on 02/08/2009 1:11:11 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SJackson
I thought I was getting some pie.

You missed the part about sharing your wealth?

8 posted on 02/08/2009 1:12:56 PM PST by ColdWater
[ Post Reply | Private Reply | To 6 | View Replies]

To: Daveinyork
If you support health care for children, put your money where your mouth is and support it with your own money, and leave the taxpayers out of it.

Next thing you're going to suggest parents should pay for their kids healthcare. The saddest part of all this, those who really need it, the parents are frequently disinterested, and don't even sign the kids up.

I may have the state wrong, but I believe Washington recently terminated a similar program, because the overwhelming majority, 75% to 90% I believe, of the participants were simply moving from private insurance. Those who were uninsured, didn't bother to sign up.

9 posted on 02/08/2009 1:14:46 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Raycpa
I have to add a pic posted today by Raycpa to this thread, Darwin still raising controversy . Some of us don't care about the taxes.


10 posted on 02/08/2009 1:17:18 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SJackson
Mr. Finck: Later this year after you close, maybe you can get one of jobs in the green industry or maybe you ask your good friend, Obama to pay your mortgage since you like him so much. But he is the one you wanted, now live with your consequences or stupidity, your choice. However, you and 160,000,000 foisted him on America. Don't you feel proud?
11 posted on 02/08/2009 1:18:36 PM PST by Aggie65
[ Post Reply | Private Reply | To 1 | View Replies]

To: ColdWater
You missed the part about sharing your wealth?

Never heard him say that, I was wildly cheering.

I'm supposed to believe some plumber?

The man and his programs are funny, but only for a little while. But they stay with us after the laughter is gone.

Not S, but there's a TD at work here.

12 posted on 02/08/2009 1:19:38 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SJackson
ANY increase in taxes, anywhere in the economy is disastrous for Americans. And further targeting one segment of society, a segment that is often denied health coverage themselves or must pay much higher premiums, to pay for health care for other people children and even adults, is unconstitutional, unAmerican, and should be illegal. We are talking about a legal product, legal industry, and American jobs, surround that legal product.

If a program is going to be put in place to benefit children, and a tax is needed to pay for it, the govt should institute a FAIR one, (like sugar, LOL)that targets everyone, NOT just one specified group. And it must be noted that minorities and the poor use these same products disproportionately to the majority, and are burdened by the tax much more than those who could afford it.

Remove these burdensome taxes and place them on something that everyone uses, or don't tax to support programs. Personally, I don't believe health care is a “right”, it is a responsibility! And perhaps it is time to stop asking folks who have carried the burden all their lives, as have their parents and grandparent, to give back (no call is needed, they do it as a matter of values) and start expecting those who HAVE BENEFITED from govt taking from those carrying the burden, to give back!!

13 posted on 02/08/2009 1:20:21 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Daveinyork

AMEN to that Dave.


14 posted on 02/08/2009 1:20:53 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SJackson

It is everyone’s patriotic duty to smoke like there is no tomorrow.


15 posted on 02/08/2009 1:21:53 PM PST by NonValueAdded (Play the new "rehab" card: apologize for cheating on your taxes)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Daveinyork

I support childrens parents supporting the health care for the little brats.


16 posted on 02/08/2009 1:21:54 PM PST by screaminsunshine (f)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SJackson

Has anyone been able to wrap their brains around the absolute, utter, without-a-shadow-of-a-doubt hypocrisy of funding HEALTH CARE with an increase on taxes for a PRODUCT THAT COULD KILL YOU????

Please!?!?!?!?!?!


17 posted on 02/08/2009 1:24:29 PM PST by GatorGirl (Proud member of the Gator Nation!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NonValueAdded
It is everyone’s patriotic duty to smoke like there is no tomorrow.

Yes, that would go a long way to boosting the solvency of Social Security.

18 posted on 02/08/2009 1:24:29 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 15 | View Replies]

To: SJackson
I may have the state wrong, but I believe Washington recently terminated a similar program, because the overwhelming majority, 75% to 90% I believe, of the participants were simply moving from private insurance. Those who were uninsured, didn't bother to sign up.

wasn't it Hawaii? IIRC, the program was going broke after just a few months.

19 posted on 02/08/2009 1:26:31 PM PST by digger48 (ad on over to the Capital)
[ Post Reply | Private Reply | To 9 | View Replies]

To: GatorGirl
Has anyone been able to wrap their brains around the absolute, utter, without-a-shadow-of-a-doubt hypocrisy of funding HEALTH CARE with an increase on taxes for a PRODUCT THAT COULD KILL YOU???? Please!?!?!?!?!?!

Add to that the funding in the Stimulus package to discourage smoking, thus spending to decrease revenues for health care.

20 posted on 02/08/2009 1:26:53 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 17 | View Replies]

To: SJackson

“Next thing you’re going to suggest parents should pay for their kids healthcare. “

I would, but I realize that some can’t afford it. I’m suggesting that those who want kids to have health care, should pony up with their own money, set up a 501c3 organization and get VOLUNTARY donations. Instead of contributing to PACS to convince the government to do it with taxpayer money, raise the money and use it to fund health care for children. Using taxpayer money amounts to theft, no matter how noble the cause.

If you won’t do it voluntarily with your own money, but rather force taxpayers to do it, you really don’t care about providing health care for underpriviledged children.


21 posted on 02/08/2009 1:27:14 PM PST by Daveinyork
[ Post Reply | Private Reply | To 9 | View Replies]

To: GatorGirl
The epitomy of hypocrisy?? Best explantion I have. I got nothin!
22 posted on 02/08/2009 1:27:44 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 17 | View Replies]

To: digger48
wasn't it Hawaii? IIRC, the program was going broke after just a few months.

Possibly, I'll look later. But the program didn't make it one fiscal year. And the problem, responsible parents simply shifted their insurance to the state program, the irresponsible didn't sign up.

I'm happy to pay for health care for the indigent, and the children of the irresponsible, but the net effect of these plans is simply shifting responsibility for health care from the responsible parent to the government. The irresponsible remain irresponsible.

23 posted on 02/08/2009 1:29:54 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Daveinyork
Dave you should run for Congress. You are absolutely right!
24 posted on 02/08/2009 1:30:08 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: SJackson

MA program didn’t make it a year without failing either, the only difference is they didn’t cancel it, just kept going into the red anyway. It is so overextended, so far in the hole it is almost silly. Same problems as HI had.


25 posted on 02/08/2009 1:33:06 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 23 | View Replies]

To: gidget7

I agree. I’m OK with excise taxes, or tariffs, but not directed to particular expenditures. But in general, taxes should be broadly based. I support taxing every working American, even if it’s a trivial amount. Even if the benefits received exceed their taxes. I’d LOVE to see the $500 “stimulus” to some workers be considered taxable income, and taxed accordingly. All workers should have a personal stake in government expenditures.


26 posted on 02/08/2009 1:34:12 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 13 | View Replies]

And a different take from Yale


Viva la cigarlución

Yale Daily

Published Friday, February 6, 2009

http://www.yaledailynews.com/articles/view/27552

The future appears grim for us cigar enthusiasts, who have in recent years seen our civil liberties erode like the wrapper on a hot, fast-burning Java wafe. Our new president has voted to increase the cap on cigar taxes through SCHIP legislation and advocates increased nationwide smoking bans. Yet there appears to be a glimmer of hope even for our persecuted bunch, as the Hoover Digest, Foreign Policy magazine and legions of Cuban-Americans plead once more with the federal government: End the embargo.

There was a time when even aficionados considered the embargo a worthwhile foreign policy endeavor. President Kennedy narrowly averted apocalyptic nuclear war and sought to strip a crazy, communist dictator of funds that he would inevitably use on crazy, communist schemes by prohibiting all trade with Cuba (though only after he had purchased 1,000 Petite H. Upmann cigars for himself!). Yet in this era of change and supposed hope, how can we allow an antiquated and unnecessarily cruel vestige of the Cold War to persist? How can we continue to smoke disgusting Honduran cigars when a bounty of delicious Cubans lie a mere 90 miles away?

I speak on behalf of all downtrodden cigar smokers when I say this: Mr. President, if you seek prosperity, if you seek liberalization, hear our raspy, smoky cries! Mr. President, tear down this embargo!


27 posted on 02/08/2009 1:39:11 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 26 | View Replies]

To: SJackson

When does this increased tax go into effect?


28 posted on 02/08/2009 1:41:18 PM PST by Comparative Advantage
[ Post Reply | Private Reply | To 26 | View Replies]

To: Comparative Advantage
When does this increased tax go into effect?

Don't know if there was a time delay, maybe BHO and assorted congresscritters have humidors to fill, but it's passed and signed, so it's law.

29 posted on 02/08/2009 1:56:41 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 28 | View Replies]

To: SJackson
Huh? The stimulus we got last year was simply deducted from anything you pay in this year, or deducted from what you get back depending on your filing status. So if you pay taxes, it was just a loan. Had nothing to do with taxes.

I already filed mine, and it equaled out so I got back nothing. It wasn't taxable income, but it is either less you pay in this time or less you get back. That doesn't jive with something you pay tax on.

And I don't believe in welfare of any kind. I agree with the poster who said if folks want to provide health care to the poor, form charitable organizxations and let people contribute. Taxes to cover that is theft. I only used sugar as an example of “everyone uses it”. I don't support such an idea or any other that seeks to control what people eat drink or use.

30 posted on 02/08/2009 1:57:07 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 26 | View Replies]

To: Comparative Advantage

April 1, 2009


31 posted on 02/08/2009 2:02:38 PM PST by truthfreedom
[ Post Reply | Private Reply | To 28 | View Replies]

To: gidget7
I already filed mine, and it equaled out so I got back nothing. It wasn't taxable income, but it is either less you pay in this time or less you get back. That doesn't jive with something you pay tax on.

Yes, I wasn't clear, but was really addressing the Obama "stimulus", which is refundable and will go to workers who pay no taxes, rather than GWB's.

But my point really was that it's better to have more people on the tax roles, not fewer, giving all Americans a stake in our governments operation. I acknowledge that the idea I was suggesting, nominally taxing EIC or welfare benefits for example, won't ever happen. But it would be nice for every American to have a stake in fiscal policy.

Excise taxes have been with us forever, like tariffs. I agree with you they're better when broad based, sugar, that's almost like taxing tea :>)

I fear the message is that while no one likes taxes at any income level, our government is becoming expert at levying them in a way that maximizes political support.

32 posted on 02/08/2009 2:08:33 PM PST by SJackson (most merciful thing that a large family does to one of its infant members is to kill it, M Sanger)
[ Post Reply | Private Reply | To 30 | View Replies]

To: Amityschild; Atchafalaya; bigjoesaddle; Bulldaddy; BulletBobCo; Chasaway; CJ Wolf; Clemenza; ...
FReeper
Cigar
Aficionado
"Never mess with a man willing to suck on a raging trash fire." -- Tijeras_Slim
Send FReepmail if you want on/off FCAP list
The List of Ping Lists

33 posted on 02/08/2009 2:14:40 PM PST by martin_fierro (< |:)~)
[ Post Reply | Private Reply | To 1 | View Replies]

To: truthfreedom

Thank you. April Fool’s Day, how appropriate.


34 posted on 02/08/2009 2:16:59 PM PST by Comparative Advantage
[ Post Reply | Private Reply | To 31 | View Replies]

To: SJackson
From the Yale article you quoted:
Our new president has voted to increase the cap on cigar taxes through SCHIP legislation and advocates increased nationwide smoking bans.
This Yale student believes nObama voted for SCHIP? Figures.
35 posted on 02/08/2009 2:41:32 PM PST by upchuck (I'm glad I'm old. Thus I can remember when America was a decent, moral, God fearing country.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: NonValueAdded

This tax was specifically aimed at Rush Limbaugh(sarcasm). Well, he does smoke a lot of cigars!


36 posted on 02/08/2009 3:14:56 PM PST by mono
[ Post Reply | Private Reply | To 15 | View Replies]

To: SJackson

“I support providing health care for children. However, the tax provision in the State Children’s Health Insurance Program (SCHIP) bill will have devastating, unintended consequences.”

You can’t have it both ways, man. If you support this kind of socialist program, then you had better be ready to fork up the dough to the man. If you want to smoke cigars for a lower price, you had better not support this. Either way, it looks like it’s too late and cigar smokers are screwed. But they are only putting it in a LITTLE way, eh??


37 posted on 03/16/2009 7:13:57 PM PDT by acigarsmoker
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson