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The State Children's Health Insurance Program (SCHIP) is a U.S. federal government program that gives funds to states in order to provide health insurance to families with children. The program was designed to cover uninsured children in families with incomes that are modest but too high to qualify for Medicaid.
SCHIP was created in 1997 and initially authorized for 10 years. SCHIP was to expire in September 2007. So, in July 2007, the U.S. Senate and Congress tried to not only reauthorize SCHIP but also expand SCHIP by $35 billion by proposing a 20,000% increase in the federal excise tax on cigars and $0.61 tax increase on pack of cigarettes. After President Bush's first veto, the U.S. Senate and Congress modified the tax increase on cigars to 6,000% but the revised expansion of SCHIP was vetoed again by President Bush. Unfortunately, the SCHIP debate is not dead yet.
After two presidential vetoes, SCHIP was extended in its current form until 2009. When the U.S. Senate and Congress reconvene in September, they might try to increase the federal excise tax on cigars by 6,000% in order to authorize the bill for SCHIP expanded by $35 billion.
We support providing adequate health insurance to poor children. However, $35 billion expansion of SCHIP is flawed. With a 6,000% increase in the federal excise tax on cigars, it will reduce the number of smokers and consequently, diminish the funding source. Furthermore, in order to generate the tax revenue needed for expanding SCHIP, Congress must find 22.4 million new smokers by 2017.
Please contact your Senator and Congressman, and let them know that even though you support providing adequate health insurance for poor children, you will not support the 6,000% tax increase on cigars. |
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Hundreds of Thousands of People Are Threatened by SCHIP's Cigar Tax. |
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