For those who have not heard about this yet.
The Senate Finance Committee has scheduled a markup on Tuesday, July 17 on legislation dealing with the State Children’s Health Insurance Program (SCHIP). The measure is expected to be reported out of committee. Funding would be almost totally via higher taxes on tobacco products. The cigarette tax will increase by $.61 to $1 per pack effective after December 31, 2007. Other tobacco products would be taxed as follows: large cigars — 53.13% of mfr’s or importer’s sales price but not more than $10.00 per cigar.
This could potentially kill the cigar industry. PLEASE get involved and call or write your senator and let them know that you do NOT support this. Check out this post by Lew Rothman of JrCigar.com.
http://www.cigarfamily.com/cf4/thread.cfm?Room=Cigar&threadId=47549&z=154
07/19/07 Update: The senate committe PASSED this bill. Now all hope is NOT lost. It has to go to the Senate and the President has stated that he WILL VETO this bill. Continute to CALL your senators and let them know you oppose this bill. Lets keep this stupid bill from passing. If it passes the Senate, hopefully the President will keep his word and veto the bill. We will keep you posted.
07/26/07 Update: The house is going to propose an amended bill. This would change the tax rate to 44.63 percent. The biggest change would be the cap. It would go from the .05 it is today to $1.00. That is still a big increase, but not as bad as the $10.00 cap.
One way to contact your senators about this is to use the RTDA tool. http://capwiz.com/rtda/issues/
Just click on “Stop The Federal Tobacco Tax Increase” to start.
I’ve emailed mine and haven’t heard a thing back yet. So far I’ve heard some responses from Democratic Senators but all they do is skirt the issue with a form letter that reads identical from one to the next.
Thanks Justin and zhadum,
I just used the email tool on http://capwiz.com/rtda/issues to send off a message.
We can make a difference as we work together.
Cal
Same here. This tax is ridiculous. Whatever happened to having kids when you can afford to financially?
me and a few buddyz called.i had some lady at the store tell me it should be as high as they can get the tax cuz “smoking kills”.i told her it wasnt the governments job to take care of me and if i wanted socialized heath care i would move to Canada.using children to push socialized health care is sicking.
Not sure if anyone besides me still listens to Rush Limbaugh but Rush brought up a good point the other day. If this tax increase is in the name of children’s health then the government should take into account other things. Let the parents pay an equal tax on those snickers, cheetos and trips to McDonalds. Aren’t they just as “dangerous” as smoking?
Sent in my email yesterday. Got a form letter in response, from Dick Durbin. No mention of cigars in it. Just “…tobacco…number one killer…children…lives of addiction…blah blah blah.” Still, I’m glad I sent in my email. Enough people do the same, it will make a difference.
The logic for this tax is flawed. To raise money for health care we tax tobacco, but tobacco is bad for you and you should not smoke. So if people stop smoking then how do you pay for this program? Really dumb. I believe that natural tobacco will NOT kill you. With cigarettes they have all of these other materials in them that they are bad. Our cigars are 100% tobacco.
These people tend to go to extremes when they get on their soapbox. I don’t see the logic in targeting one group. What about McDonalds, Taco Bell, ALL lunch meats with preservatives (all of them have it) that ’cause cancer’, Coffee (which I am addicted to)… I could go on and on.
Justin, Vic, and everyone else here is right, although cigar’s certainly can’t be good for you, I don’t see it any different then having a good deli sandwich. Sure there are risks with almost anything we do. Why single out one activity?
Socialized medicine isn’t a bad thing, but we can get the money from many sources. Tobacco is just easy to target and clump cigars into the ‘smoking kills’ school of thought.
With all the dems in congress it’s going to be hard. I’ll do my part.
Bush said he’s going to veto this? hmm, at least he’s proving to be good for something after all.
I really hate how the second LIBs take control they target unpopular groups like us to fleece. Instead of cutting down spending in other areas like we all do in our own homes when we need to buy something, they just go out and mug people. bunch of assholes.
justin, there is no logic or reasoning involved here. Dems start programs everyday and need funding, they never cut programs, so they just go out and mug people.
Dems in my neck of the woods tried to put and extra tax of yachts to fund some social program. Who’s going to picket for yacht owners? Then they tried to tax doctors for some other program, who’s going to shed a tear for doctors- who people believe are overpaid because they pay so much for health care.
I don’t think this is a Democrat vs. Republican thing. Look at who negotiated this plan:
Under the plan — negotiated by committee Chair Max Baucus (D-Mont.), ranking member Chuck Grassley (R-Iowa), and members Orrin Hatch (R-Utah) and Jay Rockefeller (D-W.Va.)
Plus 6 of the 10 Republicans on the committee voted in favor.
In talking with Jerry I think its more of these Senators looking out to be re-elected next year and no one wants to give an opponent easy ammo by voting against healthcare for children.
Lets also keep in mind that this isn’t a new program but more of a renewing of a program. SCHIP has been around for years but the reason this is so important now is because no one wants to be labeled as “against healthcare for children” with the upcoming election next year with Healthcare being the next biggest item after “The War”.
We’re an easy target because smoking has been labeled as being “evil”. Fast food and the like are still only considered “bad” and haven’t reached the level of “evil” yet.
I’m not sure when it happenend or how it happenend but somewhere along the way we gave Congress too much power. There should be no such thing as a career politician. With no term limits its too easy for special interests to have their way, too easy for these representatives to lose touch with the people, to lose focus on the job we sent them there to do.
Lets hope the President is true to his word and vetos this bill. Even better I hope it just doesn’t pass. Keep the pressure on!
at the risk of pissing some folks off, im a right wing cigar smoking american.this sh*t has got to end NOW!i am sick and tired of picking up the tap for these liberal programs.SCHIP was started back in 97 by who? clinton.let the wife get in office and see what happens.
You’re kidding yourself if you don’t think this is a liberal thing. Funding social programs through taxes…..how much more liberal can you get??????????????? A lot of democrats like to parade rouge or patronizing republicans as the standard for all republicans. True conservative republicans are against funding social programs through taxes, while democrats live to do things like this.
I just read a little more into this and from what I read, Democrats actually wanted to tack on an additional 50 BILLION DOLLARS!
Vic, u mention 6-10 republicans voted in favor- that leaves 4 republicans who voted against. i know you already know that ALL the democrats on the committee voted in favor and the only people who opposed were the 4 republicans, you just conveniently left that out. the vote was 22 versus 4.
As a cigar smoker, you really need to know who your enemies are. If you really think it’s not a liberal/conservative thing you fooling yourself.
Republicans are scared stiff about losing additional seats, this shames me as a republican. They’re not standing up for limited government, lower taxes, and stronger border protection. This drives me crazy.
Don’t fool yourself and anyone else for that matter, democrats are more likely to tell you not to smoke and then at the same time make money off of you to fund their special interests.
If it were Hilary and not Bush in office, do you think she’d even think twice about approving this bill??????
Maybe we ought to cool it on the partisan silliness and keep our eyes on the ball. Left-leaning smokers are just as tired of being soaked (by both sides) as right wingers. Members of both parties see smokers as easy marks, and recent history surely demonstrates that both sides blow through cash with equal haste. Where they spend this confiscated money differs on occasion, but it’s a distinction without a difference if you’re the guy whose pocket is being picked.
By way of an update on my efforts, I received a completely non-committal response from the office of Sen. Mel Martinez (R) here in FL. While there was vague allusion to ‘being careful with taxpayers’ money,’ there was no commitment to vote against the measure, nor was there acknowledgement that the tax pertaining to cigars would be uniquely devastating to the local economies of Little Havana and Ybor City. If anyone ought to understand the local consequences of this funding proposal, you’d think it would be a Cuban conservative from FL. Perhaps this should remind the more partisan among us that labels aren’t all they’re cracked up to be?
In the interest of even-handedness, I am equally disgusted with Sen. Nelson (D), who has yet to respond. I’ll keep y’all posted.
Let me get something straight-
There are some of you here who honestly don’t believe that HIGHER TAXES and SOCIAL PROGRAMS = Liberal Democrats?
In congress we have conservative democrats and liberal republicans, and then you have centrists. Their votes go all over the board. However, a key fundamental staple of liberalism is the start and expansion of social programs through new/higher taxes. It’s at the heart of liberalism.
I’m not just attacking dems though, placating republicans should be ashamed of themselves. They fund raise like conservatives but once in office, they turn into centrists. At least with dems, you know exactly what you’re going to get- higher taxes and social programs…like this bill.
BOSTON TEA PARTY!!!!!! And whoever said “Socialized medicine isn’t a bad thing” is a total noob. Do some research before you open your mouth!!
I hope you guys don’t suffer like us in Canada with high taxes on cigars. When i went to the cigar shop the other day in Toronto I saw Padron 1964 for $54 CAN each and Padron 3000 Moduro for $15 each and i get them in US for $77 a box of 26 when i travel down the border. Its really bad and i think you have to fight really hard not to let the tax hike happen.
With respect, Shane, looking at this particular issue in terms of Left, Right and Center is hopelessly simplistic. Your distaste for anyone to the Left of Mussolini is duly noted, but irrelevant. IMO, we smokers need to get more savvy about how proposals like this come into being if we ever hope to effectively defend our interests. Before you brand me an enemy of the state and ship me to Gitmo, hear me out…
In case you’ve missed it, the interest group spending the money to pass this bill is PHRMA. You don’t need to be a political scientist to know that the pharmaceutical industry is no tool of the Left, yet they are on the air with millions worth of ads pushing SCHIP as we speak. Their interest here is that more insured children equals more customers, equals more Ritalin scrips. They’re pursuing a “conservative” end (profit by any means necessary) via “liberal” means (redistribution of wealth, with government as the collection agency).
So pain-in-the-ass liberal do-gooders, as well as conservatives who believe that what’s good for PHRMA is good for America, fall right in line. They have two things in common: (1) They ALL want to get it paid for with minimal resistance (read as, soak the smoker); (2) both sides are devoutly pro-welfare state, as the Left has its social programs and the Right has its corporate welfare. This bill is a prime example of both.
If dime store characterizations of liberal vs. conservative and Dem vs. Republican make you a happier victim, Shane, then be my guest. But if we smokers can’t even figure out who’s tooling us, how and why, then we’re no better equipped to defend ourselves from this kind of crap in the future. Food for thought.
Okay, you can send me to Gitmo now…
So you’re saying liberals aren’t for the expansion of social programs through taxes? You call it a “dime store” characterization, but it’s one of the main tenants of the democratic party. You dispute this?
Let me state my stance a bit clearer, I really didn’t do a good job of it first time around.
I am against the expansion of liberal social programs through draconian taxes. We’re talking about politics here and it’s impossible not to talk about political parties because politicians practice their party’s political philosophy- instruments of the philosophy. I have disdain not only for democrats who support bills like this but also Halliburton bought republicans.
I live in a state where every single year, liberal democrats dream up of new ways to fleece the taxpayer to fund one of their social programs, and every year taxpayers have to mobilize and vote these things down. True, “compassionate conservatives” do this too, and I’m against them as well- Schwarzenegger and G-Dub are good examples.
BTW, I’m actually independent. Conservative on the economy and defense, but liberal on social issues.
Taxation incenses me, so I’m sorry for those who had to read my contrarian remarks. It was a visceral reaction.
Hey man, if you want to go to Gitmo, I’ll start a round of donations for the cause. Anyone who wants to send Kev to Gitmo can paypal me and we’ll get to work.
If you vote democrat for the presidency, would you be surprised that a bill like this will pass? If republicans hadn’t lost congress last year, do you really think we’d be having this discussion right now? Which party actually wants to beef up this already draconian proposed tax by an additional 50 billion?
Anyway, I feel silly arguing with other cigar smokers. So for my part, I’ll end with that.
Happy smoking, time for me to enjoy some Oban scotch and a stinky maduro.
does anybody have an idea when the tax would be implemented? is anybody stocking up?
Mike,
I *think* i read somewhere that it would go into effect 4/01/08 (April Fools Day).
Got this from Senator Sherrod Brown (D) yesterday (7/30) – he’s not getting all the facts it seems…
Dear Mr. Roberts:
Thank you for expressing your concerns regarding the possible increase in the federal tobacco tax.
Congress is considering raising the excise tax on tobacco products to provide funding for the State Children’s Health Insurance Program (SCHIP). SCHIP extends needed health coverage to low-income children. In 2005, SCHIP provided health care coverage to more than 6.1 million uninsured children. The additional revenue generated by the excise tax would, in part, maintain SCHIP coverage for those children already enrolled in the program, and extend coverage to the more than 6 million eligible children nationwide not currently enrolled. In Ohio alone, the expansion would affect approximately 219,000 uninsured children.
Through programs like SCHIP, we have made significant progress in the expansion of children’s health care coverage. Ten years ago, one in five of this nation’s children had no health insurance. Today that number has been reduced to one in ten.
SCHIP is a highly valued program, but I understand your concerns about funding this program with an excise tax that would apply to cigars as well as cigarettes. While the overall increase is proportional across tobacco products, the current proposal would also raise the cap on large cigars, allowing for a $10 tax on some of the most expensive cigars.
As the Senate considers legislation to raise cigarette taxes, I will be sure to keep your concerns in mind. Thank you again for contacting me.
Sincerely,
Sherrod Brown
Thought some of you would be interested in what Rocky Patel has to say about this tax. He isn’t kidding around.
Right on Rocky Patel!!!! I’ve already sent off two emails and got one response. I plan on hitting them up again.
fyi, I”ve asked them to tax fast food and soda pop since I feel taxing a majority is better then oppressing a minority. I’m sure that irritates some, but it’s definitely more fair to tax a majority of people then tax a minority becuase you can.
Dave
Lefties picture fat-cat republicans puffing on cigars and want to drive a stake through their heart ; but in their “zeal to kill” they are going to decimate the already suffering economy in several south and central american countries and there will be a new flood of starving immigrants pounding on our door. They will also rob us of another valuable piece of american freedom which we cannot afford to lose. The tax will not work because cigars are not addicting and so many of us will simply stop smoking them, and the “fat-cats” they are aiming at will avoid the tax by flying them in. EVERYONE will end up paying for this program of theirs but its just a crying shame that we are being forced to stop doing something we enjoy.
Our state representatives are too cowardly to stand against the proposal because they will be labeled “child-haters” by the liberals and other non-smokers – many of which are obese assholes who have made a conscious decision to get fat rather than smoke.