Regis Philbin
Jul 17th, 2007, 07:18 PM
I'm not a smoker and never have been...but this is just one more industry BIG GOVERNMENT wants to destroy...
http://www.sptimes.com/2007/07/17/Business/Cigarmakers_in_a_pani.shtml
Here's the source of the controversy: The Democrat controlled Congress has sought an extra $35-billion to $50-billion for the state children's health insurance program. The program distributes payments to the states to help buy coverage for kids not poor enough for Medicaid.
Cigarettes, which accounted for more than 95 percent of tobacco tax collections last year, are the main focus of the bill. Federal taxes on a pack would jump from 39 cents to $1.
But the legislation has dragged cigars along for the ride. The industry operates under a 4.8 cents-per-cigar tax cap.
Under the proposed bill, taxes on "large cigars," a category that includes all but the tiny cigars sold in 20 packs like cigarettes, would rise to 53 percent.
A U.S. Senate version of the bill under consideration today in the Finance Committee sets the maximum tax per cigar at $10.
"We are a very small industry. We're the fly. The cigarette industry is the elephant as far as tax collections are concerned," Newman said. "We've been roped in with conglomerates that own cigarette companies."
http://www.sptimes.com/2007/07/17/Business/Cigarmakers_in_a_pani.shtml
Here's the source of the controversy: The Democrat controlled Congress has sought an extra $35-billion to $50-billion for the state children's health insurance program. The program distributes payments to the states to help buy coverage for kids not poor enough for Medicaid.
Cigarettes, which accounted for more than 95 percent of tobacco tax collections last year, are the main focus of the bill. Federal taxes on a pack would jump from 39 cents to $1.
But the legislation has dragged cigars along for the ride. The industry operates under a 4.8 cents-per-cigar tax cap.
Under the proposed bill, taxes on "large cigars," a category that includes all but the tiny cigars sold in 20 packs like cigarettes, would rise to 53 percent.
A U.S. Senate version of the bill under consideration today in the Finance Committee sets the maximum tax per cigar at $10.
"We are a very small industry. We're the fly. The cigarette industry is the elephant as far as tax collections are concerned," Newman said. "We've been roped in with conglomerates that own cigarette companies."