Monday, September 24 2007
By David Savona
CigarAficionado.com
The U.S. House of Representatives has agreed to accept the Senate's version of the State Children's Health Initiative (SCHIP) bill, hoping to get new legislation passed before the current provisions expire on September 30. The bill, which seeks to substantially increase the funding of the SCHIP program, would rely heavily on increased tobacco taxes, including significantly higher taxes on cigars.
The latest version of the Senate legislation calls for raising the federal excise tax on large cigars to 53.12 percent, with a cap of $3 per cigar. The first version of the bill called for a $10 limit. There would also be a floor tax charged on cigars that retailers and distributors have in stock.
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