SCHIP is back

[webjunkie]

I try to steer clear of political stuff but:

It's back, but at the moment with a $0.40 cap.

http://capwiz.com/rtda/issues/alert/?alertid=12162376

[St. Lou Stu]

I'm going to combat SCHIP by buying nothing but Cuban cigars.:sifone:

[webjunkie]

I'm going to combat SCHIP by buying nothing but Cuban cigars.:sifone:

Sounds like a plan, where do I sign up? :D

[zmancbr]

I'm going to combat SCHIP by buying nothing but Cuban cigars.:sifone:


If they get it passed and it costs $.40-1.00 per stick extra, you might have to just to afford your collection...:new_rofl:

[bigsteve]

Thanks for the heads up. I have a problem with taxes in general, but these types of excise taxes really irritate me. I think I'll be shooting a couple of letters out to my representatives in Congress.

[mojo65]

Thanks for the heads up. I have a problem with taxes in general, but these types of excise taxes really irritate me. I think I'll be shooting a couple of letters out to my representatives in Congress.

Be more affective to BAY AT THE MOON........

[zmancbr]

Thanks for the heads up. I have a problem with taxes in general, but these types of excise taxes really irritate me. I think I'll be shooting a couple of letters out to my representatives in Congress.


Yeah not a bad idea... of course who knows if they will listen...:rolleyes:

[Spect]

Thanks for the heads up. I have a problem with taxes in general, but these types of excise taxes really irritate me. I think I'll be shooting a couple of letters out to my representatives in Congress.


I did this during round 1 and received a bunch of nicely written letters about how we have to save the children. I hope your letters a received better than mine were.

The SCHIP will be a fiasco of epic proportions; leave it to our politicians to crowd out the private sector in times of economic hardship.

[bigsteve]

Be more affective to BAY AT THE MOON........

Maybe I should enclose a check in my letter.

[mojo65]

Maybe I should enclose a check in my letter.

Just post date it tell after the vote.....and then cancel the check of they vote wrong.....

[St. Lou Stu]

If they get it passed and it costs $.40-1.00 per stick extra, you might have to just to afford your collection...:new_rofl:

No doubt! :sifone:

[webjunkie]

If (more likely when) this passes the Senate (it passed the House today) does that mean I can tell the anti-smoking nazis to back off because I'm doing it for the children?

[mojo65]

Better named the bullchip

[LordOfWu]

If (more likely when) this passes the Senate (it passed the House today) does that mean I can tell the anti-smoking nazis to back off because I'm doing it for the children?

Way to look for the silver lining!

[zmancbr]

If (more likely when) this passes the Senate (it passed the House today) does that mean I can tell the anti-smoking nazis to back off because I'm doing it for the children?


I sure as hell am going to start using this anytime someone gives me a dirty look while I am smoking a cigar lol... :new_rofl:

[caveman]

Here are the details:

SCHIP Legislation Introduced Including 40-cent Cap on Premium Cigars
International Premium Cigar & Pipe Retailers Association (IPCPR) Bill Looks for Easy Passage Through House of Representatives--House May Vote as Early as Thursday
http://origin.ih.constantcontact.com/fs095/1101665745359/img/5.jpg?a=1102407886878
January 13, 2009 - The latest version of the State Children's Health Insurance Program (SCHIP), HR2, has been officially introduced in House Ways & Means Committee. The industry compromise on the revised tax rate on large cigars has been incorporated into HR2. The new tax rate will be 52.4% with a maximum tax cap on any one cigar at 40 cents per cigar.

In previous versions of SCHIP legislation, the tax cap rate held at $3 per cigar. Your trade association and its federal lobbyists, working in conjunction with the Cigar Association of America, our industry came together to agressively challenge the distasterous, proposed $3 tax cap, and get the substantially reduced to the more sustainable 40-cent tax cap.

The IPCPR also recognizes the work of the associate members of your association, who were a key component in educating to Congress on our industry. Thank you to our retail members and their customers for supporting our aggressive grassroots efforts.

While HR2 looks to breeze through the House, it may have a slower journey through the Senate, though we do not expect any direct changes to the tax cap rate.
SCHIP Legislation Details

The new tax rates are effective April 1, 2009;
The cigarette tax rate goes from $.39 per pack to $1.00 per pack;
The tax on snuff goes from $.585 per pound to $1.50 per pound;
The tax on pipe tobacco goes from $1.0969 per pound to $2.8126 per pound;
The tax on RYO goes from $1.0969 per pound to $24.62 per pound (not a typo).
Additionally the definition of RYO has been expanded to include cigar wrappers to address the "blunt wraps" issue;
The tax change to small cigars (cigars weighing less the three (3) pounds per thousand will be phased in over five (5) years at the following rates per year:
2009 & 2010 - $.25 per pack
2011 & 2012 - $.50 per pack
2013 & 2014 - $.75 per pack
2015 and beyond - $1.00 per pack

We were successful in continuing to have the floor tax NOT apply to large cigars; however it does pertain to any other tobacco products.

The International Premium Cigar & Pipe Retailers Association (IPCPR) is a not-for-profit trade association organized as the advocate for the independent retail tobacconist and recognized as the "Voice of Authority and Reason" on premium tobacco related issues.
International Premium Cigar & Pipe Retailers Association (IPCPR)
Chris McCalla
Legislative Director

[webjunkie]

I heard that this passed the senate. Haven't found confirmation yet.

Was feeling a bit of pressure to stock up... might buy one or two things next month that I've been eying but I don't think that my buying habits will change at this juncture. At $0.40 per cigar that's an extra $10 per box of 25, assuming that there is no additional mark up. I do think that this is just the start. It's $0.40, for now.

[bigsteve]

I heard that this passed the senate. Haven't found confirmation yet.


It's not through the Senate yet. It has been placed on the Senate calendar for debate. You can follow the bill via THOMAS at http://thomas.loc.gov/

The bill is HR2. Here is the schedule as it currently stands:


H.R.2
Title: To amend title XXI of the Social Security Act to extend and improve the Children's Health Insurance Program, and for other purposes.
Sponsor: Rep Pallone, Frank, Jr. [NJ-6] (introduced 1/13/2009) Cosponsors (43)
Related Bills: H.RES.52
Latest Major Action: 1/16/2009 Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 18.
ALL ACTIONS:
1/13/2009:
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
1/13/2009:
Referred to House Energy and Commerce
1/13/2009:
Referred to House Ways and Means
1/13/2009:
Referred to House Education and Labor
1/13/2009 9:20pm:
Rules Committee Resolution H. Res. 52 Reported to House. Rule provides for consideration of H.R. 2 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. The Resolution waives all points of order against consideration of the bill except those arising under clause 9 or 10 of rule XXI.
1/14/2009 12:25pm:
Rule H. Res. 52 passed House.
1/14/2009 12:26pm:
Considered under the provisions of rule H. Res. 52. (consideration: CR H216-268)
1/14/2009 12:26pm:
Rule provides for consideration of H.R. 2 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. The Resolution waives all points of order against consideration of the bill except those arising under clause 9 or 10 of rule XXI.
1/14/2009 12:28pm:
DEBATE - The House proceeded with one hour of debate on H.R. 2.
1/14/2009 2:00pm:
The previous question was ordered pursuant to the rule.
1/14/2009 2:01pm:
Mr. Deal (GA) moved to recommit with instructions to Energy and Commerce. (consideration: CR H264-267)
1/14/2009 2:05pm:
DEBATE - The House proceeded with 10 minutes of debate on the Deal (GA) motion to recommit with instructions. The instructions in the motion seek to report the same back to the House forthwith with amendments to determine the use of funds for the Children's Health Insurance Program.
1/14/2009 2:11pm:
The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H266)
1/14/2009 2:30pm:
On motion to recommit with instructions Failed by the Yeas and Nays: 179 - 247 (Roll no. 15).
1/14/2009 2:45pm:
On passage Passed by recorded vote: 289 - 139 (Roll no. 16). (text: CR H216-245)
1/14/2009 2:45pm:
Motion to reconsider laid on the table Agreed to without objection.
1/14/2009:
Received in the Senate.
1/16/2009:
Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 18.

[caveman]

http://www.cigarrights.org/images/moments/US_Capitol_Framed.gif (http://rs6.net/tn.jsp?et=1102424745188&e=001K914gicIRJn5Mlgz_qvIH_xVxqPoU_cIUm_rNxWTry4KA Swg2d1l6VH93CTGx9TujIs3g6NXHveF6aYCtkhUptMEb8dOIw9 Ng0Vs7ZprKyXey564xx2SFw==)
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SCHIP And Cigar Taxes - UPDATE!

BREAKING NEWS

The State Children's Health Insurance Program (SCHIP) legislative bill has been passed the U.S. Senate Finance Committee.
Although this was not unanticipated, there is a slight modification to pay for a $300 million dental insurance program.

The excise tax on "large" cigars will now be 52.75% (previously reported at 52.4%) with a maximum tax cap of 40.26 cents per cigar (previously reported at 40 cents).

Additionally, "little" cigars will go up to $1.066 per pack, or $50.33 per 1,000 without any phase-in period as provided for in the version adopted by the House of Representatives.

The effective date remains April 1, 2009.

Many members of Congress are upset by the modification to the original bill. Sen. Orrin Hatch published a statement (http://rs6.net/tn.jsp?et=1102424745188&e=001K914gicIRJldFbaBEb-ro_m9xGhbT2o-DZb34p24ooKUEOhmQpK_e6X0wkSlpX4z27UgpP8ga7fgmocI5z ijN-bjQt1iVFQLv4R5ATB7dY6vaYWVRuMA6o4yuCibadyaTusAvlMo QA1-SdXRTBJPzhGMPGGpfAph5TXCgmEUcbTnSTLIe16Bi_xntYJS6X SRLDWYJaej0bD37asGKxKICu2W43C5xN8EP7lxKCTs3cIplFGt _mQFlj5wU6m-3ctxjCGPh_ak9gtZSOoHS2eOERpQFi0e2DVweXR5wwKbFVc=) in strong opposition to the current language of the bill.

“The original 1997 legislation achieved a fine balance between providing health care coverage for children of the working poor and balancing the federal budget," Hatch said.

"Unfortunately the original intent that has worked so well for more than ten years is lost in the partisan amendments found in the current version.”

http://www.cigarrights.org/images/layout/icon_pdf.gifClick Here to view the actual bill (PDF) (http://rs6.net/tn.jsp?et=1102424745188&e=001K914gicIRJkGze1vhOTG42Y3X6w4qpbLr2kt5MqYQzFXt bqGK73tL3CrULkeuhTVH1MACWrWAiBdB-Vcac4BAYDYwrnEIHn6tUz0J1JTKADXSdd132RR0K6zOasnXdE6 rm6cV9GIOVd720HJ2_2xy8EYeTb_I1ephXRdnNzTEDbPCKu0RF TGduakCGPviW_KkhWjmDR2WDDtVwVgu7lGpxlPa_HtbxwK)

[caveman]

This is the Latest on SCHIP
Federal Legislative Update: SCHIP Signed into Law By President-Cigars Capped at 40.26 per cigarInternational Premium Cigar & Pipe Retailers Association (IPCPR) SCHIP Signed into Law by President
Large Cigars Capped at 40.26 cents per cigar Legislation Takes Effect April 1, 2009


http://email.accountsupport.com/horde/imp/themes/graphics/spacer_red.png February 4, 2009- Following a long, drawn-out political fight started in 2007, President Obama signed into law the State Children's Health Insurance Program (SCHIP) renewal and expansion bill. In order to avoid further delay, the House of Representatives voted to accept the Senate's amendment to the SCHIP bill.

The new federal excise tax rates to take affect April 1, 2009 are as follows:

cigarettes $1.0066/pack
Large cigars 52.75% (capped at 40.26 cents per cigar)
Snuff $1.51/lb.
Chew $.5033 cents/lb.
Pipe tobacco $2.8311/lb.
RYO $24.78/lb.
Little cigars $50.00/1,000

Please remember: the cigar tax cap remains in this legislation! 40.26 cents per stick!

Important: This is a federal, manufacturer's and importers excise tax on tobacco.

[zmancbr]

Lovely... just what we need in a recession, let's tax the people who are buying products! :rolleyes: