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 cigars52.4 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.
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
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.
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.
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.

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.
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.
You missed the part about sharing your wealth?
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.
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.
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!!
AMEN to that Dave.
It is everyone’s patriotic duty to smoke like there is no tomorrow.
I support childrens parents supporting the health care for the little brats.
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!?!?!?!?!?!
Yes, that would go a long way to boosting the solvency of Social Security.
wasn't it Hawaii? IIRC, the program was going broke after just a few months.
Add to that the funding in the Stimulus package to discourage smoking, thus spending to decrease revenues for health care.
“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.
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.
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.
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.
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!
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.
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.
April 1, 2009
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.
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Thank you. April Fool’s Day, how appropriate.
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.
This tax was specifically aimed at Rush Limbaugh(sarcasm). Well, he does smoke a lot of cigars!
“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??
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