SCHIP Cigar Tax Update

The debate in the U.S. Congress over proposed legislation to expand the State Children's Health Insurance Program, which could raise the federal excise tax on cigars from $.05 to $3.00 per cigar (a 6,000% increase), may now continue until December 14, 2007. A temporary extension of the existing SCHIP program at current levels has been approved though said date. If the U.S. House cannot pass a veto proof bill by December 14, then it is possible that the existing program will be extended again through September 2008, with no increase in the federal excise tax on cigars until that time. Unless you want to start paying $75 more for a box of cigars (either after December 14, 2007 or September 30, 2008), contact your congressman and voice your opposition to the proposed increase in the federal excise tax on cigars.