Posted on 07/18/2007 11:09:52 AM PDT by Sub-Driver
Veto threat looms over insurance measure
By DEB RIECHMANN, Associated Press Writer 11 minutes ago
President Bush on Wednesday reiterated his threat to veto Senate legislation that would substantially increase funds for children's health insurance by levying a 61-cent-a-pack increase in the federal excise tax on cigarettes.
The tax increase would be used to subsidize health insurance for children and some adults with incomes too high to qualify for Medicaid but not high enough to afford insurance on their own.
The renewal of the State Children's Health Insurance Program, or SCHIP, is considered by many to be the most important health legislation that Congress will take up this year.
"Members of Congress have decided, however, to expand the program to include, in some cases, up to families earning $80,000 a year — which would cause people to drop their private insurance in order to be involved with a government insurance plan," Bush said in a speech in suburban Maryland.
"If Congress continues to insist upon expanding health care through the SCHIP program — which, by the way, would entail a huge tax increase for the American people — I'll veto the bill," he said.
Democratic leaders called for adding $50 billion to the program over the next five years. Bush had recommended a $5 billion increase.
On Friday, a bipartisan group of lawmakers in the Senate signaled their support for a $35 billion increase, bringing total funding to $60 billion over five years. The Senate proposal would provide health insurance coverage to current participants as well as an additional 3.3 million uninsured children, according to estimates from the Congressional Budget Office.
(Excerpt) Read more at news.yahoo.com ...
What happens if the taxes on cigarettes increase so much that people stop smoking? What will the tax then?
Let “the children” pay for their own insurance by buying the cigarettes. :)
problem is, poor children suffer because their parents grow more stressed at having less money thanks to the gov’t there to “help” them. These tax increases kill the lower class they’re supposed to help.
This bill is a sham. The “stealth” way of moving toward socialized medicine.
Isn’t this the $10.00 tax on cigars?
Guess politicans don’t care since they pick up there’s at duty free while on the taxpayer funded junkets.
Currently before the United States Senate is a proposal to fund health insurance on the backs of tobacco products to the tune of $35 billion (that's Billion with a B).
Most egregious is the proposed tax rate on cigars of 53.1%, including a breathtaking 20,400% increase in the cap.
This would make handmade cigars - a true mom-and-pop industry, a product enjoyed by choice an average 3 times per week - the single largest excise taxed item in the entire Internal Revenue Code....by a long shot.
This piece of legislation is called SCHIP (State Childrens Health Insurance Plan). Tonight this bill is being marked up in the Senate Finance Committee and is expected to come to the Senate floor for a vote as early as end of week.
We urge you to call both of your U.S. Senators today and express your opposition to funding "SCHIP legislation" with punitive cigar taxes. As a constituent your voice will be heard. Please see phone numbers below for your Senators. Sincerely,
Keith Meier
Cigars International
Yes it is......it’s the Rush tax.
What happens if the taxes on cigarettes increase so much that people stop smoking? What will the tax then?
Oh, don’t worry they will always find something to tax. Not that they should ever consider getting gove. spending under control or cleaning up gov. waste. Not when they can just put a tax on something the public uses - guaranteed to get the money they want. Really pisses me off, especially when we pay their freak’n salaries!!!!!
I was actually in the store yesterday and was going to pick me up a pack of Backwoods cigars. Their just little cheap rags like Clint Eastwood smoked but I like to chew on them while I’m doing yard work. It was over $5 for a pack of 8 of these small cigars... sheesh. I might as well start smoking dope again, probably cheaper.
I'm sure it's very important; it's for the "children".
Here's the problem: taxing a distinct small group exclusively for a universally public benefit, no matter how "worthy", is or should be unconstitutional.
In addition, defining certain groups as exempt from taxes at all, but allowing them to vote for tax increases is a perversion of the "taxation without representation" that defies belief. There should be a floor to taxes, overlapping exactly the benefits-obligation underlying principle.
Other than that, no problem.
It would be financially hard to maintain the habit at today's prices....will we someday have "Cigarette Loans" where a smoker could finance a carton of cigarettes?.
incomes under $80k?
cool, i could drop my current health insurance and save $600/month.
probably get lower co-pays too.
/sarc
Nanny State Ping.........
That was a good decision you made, all those years ago. And not just for your wallet’s sake. Your lungs, heart and circulatory system all thank you.
That will happen to some degree, though if history is any guide, “bootlegging” will become a very large industry.
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