President Vetoes Health Plan and Cigar Tax

It's now official, on Wednesday (October 3), President Bush vetoed the bill to expand the Children's Health Insurance Program, which would have increased the federal excise tax on cigars to a rate of approximately 53%, with a $3.00 per cigar cap. The current cap is $0.05 per cigar. Both the House and Senate approved the bill, but the House does not have enough votes to override the veto. You can read more in the New York Times.

Until new legislation is negotiated between Congress and the President to reauthorize the health care program, a dark cloud will continue to hang over the cigar industry. With a potential tax hike of 6,000% lurking on the horizon, both the cigar industry and its customers will suffer greatly, if this massive tax increase is eventually signed into law. Contact your senators and representatives today, and stop the federal tobacco tax increase. The fight is not over!

UPDATE: Instead of negotiating a more reasonable plan to fund the Children's Health Insurance Program, House Democrats have called for another vote on the legislation in two weeks, in an attempt to override the President's veto. The bill already has enough votes in the Senate, but not in the House. Unless you want to pay $75 more for your next box of 25 cigars, the time to voice your opposition is now!

October 18: U.S. House Fails to Override Veto