I got this e-mail from The Party Source.

Quote:

Your Active Involvement is Needed!

Senate Finance Committee members on Tuesday announced that they have reached a tentative agreement on legislation that would reauthorize and expand SCHIP, although the deal “is smaller than Democrats had hoped and reliant on a politically difficult” 61-cent-per-pack federal cigarette tax increase, CQ Today reports. The program is set to expire on Sept. 30.

Under the bipartisan agreement, the tobacco tax increase would provide $35 billion over five years to expand SCHIP, according to committee members Gordon Smith (R-Ore.), Orrin Hatch (R-Utah) and John Kerry (D-Mass.) (Wayne, CQ Today, 7/10). Democrats originally proposed providing an additional $50 billion over five years for the program (Freking, AP/Baltimore Sun, 7/11).

How does this affect Cigar smokers?

Rate increases.
The rates under the proposal are as follows:

  • Small cigarettes are taxed at the rate of $50.00 per thousand ($1.00 per pack);
  • Large cigarettes are taxed at the rate of $104.9999 per thousand;
  • Small cigars are taxed at the rate of $50.00 per thousand (the same rate applied to small cigarettes);
  • Large cigars are taxed at the rate equal to 53.13 percent of the manufacturer’s or importer’s sales price but not more than $10.00 per cigar;

A $5 Cigar would be $7.50
A $10 Cigar would be $15.00

Now is the time to let our Senators and Congressman hear our voices. Please take the time to contact your representatives and let them know how you feel.

Thanks in advance for your attention and action.

Update:
E mail your senators

If you don’t know what to say this should help you:

Dear Senator __________

As my honorable and elected Senator I wish to bring your attention to Senate Concurrent Resolution 21 - specifically the Amendment 510 sponsored by Gordon Smith of Oregon, Ted Kennedy of Mass , John Kerry of MA and Olympia Snow. This Amendment currently promises to raise taxes on cigars to the point where honest retailers will likely be driven out of business by the inventory tax this amendment will implement. Also, taxes to the level of $10 per cigar are not just poorly considered, they are out and out punitive action against those who purchase cigars.

As you count on my vote, I hope I can count on your vote AGAINST this amendment.

Please feel free to contact me if you wish to discuss this at any time.

Yours

________________
Citizen

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