I received an email from Mr. Brown and this is what he had to say on the proposed tax hike on cigars. My reply follows his.
Dear Mr. Fleming:
Thank you for expressing your concerns regarding the possible increase in the federal excise tax on cigarettes.
Congress is considering raising the excise tax 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 healthcare coverage to more than 6.1 million uninsured children. The additional revenue generated by the cigarette 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 will 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 on cigarettes. This tax has a tendency to be regressive, as do all taxes on consumption. And taxes may lead to inadequate program funding as revenues from cigarette taxes tend to decrease over time.
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
My email back to him:
Mr. Brown,
My concern is with the 53.13 tax that will be added to cigar
purchases. This would be 156.4% over the current rate. And, while the
current tax on cigars is capped so no cigar pays more than $.05 in
federal taxes, the proposed legislation would increase the cap by
20,413% up to $10 per cigar. The combination of these two factors will
result in a dramatic increase in cigar prices in the U.S. and cause
hardship and injury to consumers and cigar makers alike. Many small
cigar retailers will go out of business and many others will leave the
country and move to internet sales.
Sincerely,
Vincent Fleming
Citizen
on Jul 19th, 2007 at 4:23 pm
Blah, Blah, Blah…All they want is your money! If they are concerned about health of children, then outlaw the twinkie, soda, candy, fries, etc. Better yet, you should tax people by their waist size, cholestrerol level, blood pressure, etc.
I hate to repeat myself, but stop the madness!
on Jul 24th, 2007 at 3:39 pm
I would have responded back to the good representative from Ohio that perhaps what the government should be doing is regulating the birth of children to individuals that obviously have no business having children rather than placing the undue burden of these irresponsible individuals on everyone.