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A Call to ACTION on SCHIP Tax Increases!

The SCHIP program is a top priority for Democrats and may result in the single largest tax increase on one industry’s products in the history of the country.  With President-Elect Obama a supporter of SCHIP, the possibility of a tobacco tax increase to fund the expansion looms large even though Obama made campaign promises not to increase taxes on any one who earns less than $250,000.  The 2007 SCHIP bills proposed the following increases in the federal tobacco excise tax rates: 

Tobacco Product

Current Tax Rates

SCHIP Bill Tax Rates

Percentage Tax Increase

Cigarettes

39˘ per pack

$1.00 per pack

156.4%

Large Cigars

20.719% of manufacturer’s price; cap of 4.875˘/cigar

53% of manufacturer’s price; cap of $3.00/cigar

6,000%

Little Cigars

4˘ per pack

$1.00 per pack

2,197%

Pipe Tobacco

$1.0969 per pound

$2.8126 per pound

156.4%

Chewing Tobacco

19.5˘ per pound

50˘ per pound

156.4%

Snuff

58.5˘ per pound

$1.50 per pound

156.4%

RYO Tobacco

$1.0969 per pound

$8.8889 per pound

710.36%

The Time to Act is NOW!!!

Turbulent Time for Tobacco Requires Grassroots Efforts

No one can say with 100% certainty how the SCHIP legislation will finally be resolved by Congress in 2009. What can be said is that the SCHIP bill is just the beginning of what will be a turbulent year for the tobacco industry. With some in Congress supporting federal cigarette and tobacco tax increases to expand SCHIP and more than 30 states with large budget deficits some of which will also propose higher tobacco taxes as well, NATO wants to remind its members that they must continue to contact their elected officials to be heard on tobacco issues. Maintaining that dialogue and urging everyone to make phone calls continues to be an important part of opposing unfair tobacco legislation.

Your tobacco products will be taxed by an increase of up to 6000%, write, call your local congress person or senator and let them know that this is WRONG!

 

 

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