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Tobacco users unfairly bear the burden of supporting expansion of this program!In case you’ve been living under a rock lately,
you’ve probably heard that this unfair taxation act has passed. The Children’s Health Insurance Program Reauthorization
Act of 2009 (Public Law 111-3) that was signed into law by President Obama on February 4, 2009. You can find a summary from the TTB.Gov site at http://ipcpr.org/legislation.html. While they haven’t yet published the required rulemaking documents about the implementation of the provisions of this
Act. The Act increases
the Federal excise tax on all tobacco products and cigarette papers and cigarette tubes, effective April 1, 2009. In addition,
the Act imposes a floor stocks tax on all tobacco products (except large cigars), cigarette papers and cigarette tubes held
for sale on April 1, 2009. A floor stocks tax is a one-time excise tax placed on a commodity undergoing a tax increase.
The amount of the floor stocks tax is equal to the difference between the new tax rate and the one just previous to it. Any
person who holds tobacco products (except large cigars), cigarette papers, or cigarette tubes is liable for the floor stocks
tax on April 1, 2009.
Here is their graph of how the taxes, and the anticipated floor tax, will break down: Tobacco
Product | Tax Rate effective March 31, 2009 | Tax Rate effective
April
1, 2009 | Floor Stocks Tax Rate (difference between
the rates) | Small Cigarettes
- Class A (Weigh 3 lbs. or
less per 1,000) | $19.50 per 1,000 equivalent to:
$3.90 per carton $0.39 per pack | $50.33 per 1,000 equivalent to:
$10.066 per carton
$1.0066 per pack | $30.83 per 1,000 equivalent to:
$6.166 per carton $0.6166 per pack | Large Cigarettes
- Class B (Weigh more than 3 lbs. per 1,000) | Up to and
including 6½” long: $40.95 per 1,000 | Up to and including 6½” long: $105.69 per 1,000 | $64.74 per 1,000 | Over 6½
“ long: Each 2¾” counts as 1 paper, then $19.50 per 1,000 | Over 6 ½ “ long: Each 2¾” counts as 1 paper,
then $105.69 per 1,000 | Over 6½” long: $64.74 per 1,000 | Small Cigars (Weigh 3 lbs. or less per 1,000) | $1.828 per 1,000 | $50.33 per 1,000 | $48.502
per 1,000 | Large Cigars (Weigh more than 3 lbs.
per 1,000) | 20.719% of sales price but not to exceed $48.75 per 1,000 | 52.75% of sales price but not to exceed $0.4026 cents
per cigar (or $402.60 per 1,000) | NOT PART OF FLOOR STOCKS TAX | Chewing Tobacco* | $0.195 per pound | $0.5033 per pound | $0.3083
per pound | Snuff* | $0.585 per pound | $1.51 per pound | $0.925 per pound | Pipe tobacco* | $1.0969 per pound | $2.8311
per pound | $1.7342 per pound | Roll-your-own tobacco* | $1.0969 per pound | $24.78 per pound | $23.6831 per pound | Cigarette paper | Up to and including 6 ½” long: $0.0122 per 50 | Up to and including 6½” long: $0.0315 per 50 | $0.0193
per 50 | Over 6 1/2“ long: Each 2 ¾” counts as 1 paper, then $0.0122 per 50 | Over 61/2“ long:
Each 2 ¾” counts as 1 paper, then $0.0315 per 50 | Over 6½” long: $0.0193 per 50 | Cigarette tubes | Up to and
including 6½” long: $0.0244 per 50 | Up to and including 6½” long: $0.0630 per 50 | $0.0386 per 50 | Over 6½
“ long: Each 2¾” counts as 1 tube, then $0.0244 per 50 | Over 6½ “ long: Each 2¾” counts as 1 tube,
then $0.0630 per 50 | Over 6½” long: $0.0386 per 50 |
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Wise smokers of cigars and pipe tobacco will want to contact their local tobacconist before April 1, 2009 in order to stock up on their supplies before the taxes
take effect. Not only will they be saving money, but hopefully help their struggling local tobacconist out by reducing their
floor tax exposure on items that aren’t considered Large Cigars.
www.nomoretobaccotaxes.com
New SCHIP Bill—Federal Cigar Tax to Be Capped at 40 Cents Posted: Tuesday, January 13, 2009 The House Ways and Means Committee introduced the newest incarnation of the State Children's Health
Insurance Program (SCHIP) today. The International Premium Cigar & Pipe Retailers Association (IPCPR) reported in an email
that the legislation would impose a revised federal excise tax on large cigars—52.4 percent, with a maximum tax cap
of 40 cents per cigar.
It was feared throughout the cigar industry
that the cap would be much higher. The original version called for a $10 cap, and earlier versions had a cap of $3 per cigar.
The tax is currently capped at five cents. The bill, which seeks to fund an
expansion of SCHIP with higher tobacco taxes, is expected to pass given the new Democratic leadership in Washington. Last
year, Congress attempted to pass the expansion, but President Bush vetoed the legislation two times, most recently in December. "Our industry came together to aggressively challenge the disastrous, proposed $3
tax cap," wrote Chris McCalla, legislative director of the IPCPR, in the email. The new
legislation also does not have a floor tax on cigars, although certain other tobacco products would be subject to the floor
tax.
SCHIP Bill Passes House: First Step in Expanding Health Insurance for KidsJanuary 15, 2009 12:45 PM ET The bill reauthorizing the State Children's
Health Insurance Program that the House of Representatives passed yesterday will extend health coverage to an additional 4
million lower-income kids over the next 4 1/2 years, bringing the total to 11 million. The Senate expects to take up a similar
measure today, paving the way for Barack Obama to sign the bill soon after taking office. The present bill is an important first step in making good on Obama's campaign
pledge to cover all Americans. It allows states to waive the five-year waiting period for children of legal immigrants that
has prevented an estimated half million from getting coverage. And the bill provides for $100 million in grants to encourage
states to streamline and simplify outreach and enrollment. This is critical. Yearlong waiting periods and onerous documentation
requirements have discouraged eligible kids from obtaining coverage in some states. "We need to get rid of barriers to getting
enrolled and staying enrolled," says Susan Gates, general counsel for the Children's Defense Fund. But there are still going to be roughly
5 million kids without health insurance once SCHIP passes, primarily those from families that make too much money to qualify
for subsidized coverage. In many states, "too much" means anything over 200 percent of the federal poverty level, or roughly
$40,000 for a family of four. Thirty percent of uninsured children come from such families, according to the Kaiser Family
Foundation. In a statement
following the vote, Obama said, "In this moment of crisis, ensuring that every child in America has access to affordable healthcare
is not just good economic policy but a moral obligation we hold as parents and citizens." True enough, but it's not clear
how the remaining 5 million uninsured kids will get access to affordable healthcare. There's this: As the faltering economy
causes more people to lose their jobs and their health insurance, their incomes may plummet to levels where they have the
dubious good fortune of qualifying for SCHIP or other programs. And proposals that would make it easier for laid-off workers to hang on to their former employer's health benefits under federal COBRA law would help, too. Word is that the stimulus plan may include this. But the safety net isn't going
to catch everyone who needs help. In the end, achieving universal coverage for all kids will probably still require a mandate
that children have insurance, many experts agree. Obama has said he supports this. But we'll leave that politically combustible
topic for another day.
COBRA to spearhead smoking ban fight By Danica Baker
Herald
Staff Writer
CLINTON — The Clinton Organized Bar and Restaurant Association has announced plans to join forces with other
bar and restaurant associations and establishments across the state of Iowa to file an injunction against the new state smoking
ban.
“We fully intend on fighting this. This bill is wrong on so many levels. We’re going to send them
a message that ‘hey, what you’re doing is illegal,’” said COBRA President Jon Van Roekel.
House
File 2212, the Smokefree Air Act, calls for the protection of public health by reducing the level of exposure by the general
public and employees to environmental tobacco smoke. The bill prohibits smoking in public places, enclosed areas within places
of employment, outdoor sports arenas or stadiums, outdoor seating or serving areas of restaurants, public transit stations
and educational facilities. Areas that are exempt include the gaming floor of casinos, the Iowa state fairgrounds, designated
smoking areas of correctional institutions, private residences unless used as a care provider location, hotel and motel rooms
designated as smoking rooms, retail tobacco stores, private or semi-private long term care facility rooms, private clubs that
have no employees and the Iowa Veterans Home in Marshalltown.
The bill passed in the House by a vote of 54 to 45. The
Senate passed the bill by a vote of 28 to 22. Local representatives voting in favor of the measure included State Senators
Frank Wood, D-Eldridge, and Roger Stewart, D-Preston, and Rep. Polly Bukta, D-Clinton.
State Representatives Steve
Olson, R-DeWitt, and Tom Schueller, D-Maquoketa, voted against the statewide ban. The bill now goes to Gov. Chet Culver, who
is expected to sign the bill into law Tuesday.
Van Roekel said the fight against the smoking ban has just begun.
“We’re
going to try to get every establishment in these organizations in Iowa involved,” Van Roekel said. “We invite
every bar and every restaurant to be a unified voice.”
Van Roekel said a committee of members has been set up
to organize the organizations joining forces and oversee the legal process. The committee members will consist of COBRA Vice
President Gordon Carroll, co-owner of The Odeon; COBRA Secretary Shelly Brewer, owner of The Silver Dollar Saloon; and COBRA
members Brian Dalton, co-owner of Patrick’s Steakhouse and Brewery; and Steve Riojas, owner of Lyons Tap. The committee
is in the process of compiling a list of all liquor license holders in the state and contacting the owners. A meeting is being
planned to be held in Clinton or Davenport and COBRA officials hope to invite association members and business owners to attend
the meeting to discuss legal strategies.
Van Roekel said COBRA is in the process of hiring a Quad-City legal firm to
represent the organizations. He said the injunction could be filed under a variety of arguments including discrimination,
unfair trade practices or prejudicial treatment. He noted that fundraising events will be held to help pay for expenses related
to filing the injunction.
“We’re going to take this all the way to the Supreme Court if we have to,”
said Van Roekel.
Van Roekel said COBRA will be the central organization meeting with the attorneys. Carroll said anyone
who would like to become involved in the action, including business owners, employees or patrons, may contact the committee
members.
“Anyone can get in touch with any of us about this,” he said.
At the regular monthly COBRA
governing meeting held Thursday night at D.J.’s, COBRA member Steve Gendreau, owner of Illowa Music and Games, provided
the members in attendance with a summary of the preliminary discussion held with a legal firm that could potentially represent
the associations in the fight. Gendreau said the lawyers advised there is a legal argument that can be made regarding the
ban and its exemptions, claiming a Constitutional right to be treated fairly and equally.
Gendreau stated the attorneys
advised approximately $50,000 is needed to retain legal representation to file the injunction. COBRA members discussed the
funding and decided that donations of $200 each would be sought from COBRA member establishments and other establishments
across the state to gather the needed funding to begin the action. Gendreau said the ultimate goal is getting the ban lifted
from bars.
COBRA member Rollynd Loomis questioned that the legislature is infringing on people’s rights.
“It
started as a smoking issue, but now its becoming a rights issue. People are beginning to realize, what’s next? Where
is this all going to stop?” he asked.
Other bar owners expressed concerns about what secondary problems the smoking
ban could create. David James, COBRA member and owner of D.J.’s, said many bar owners don’t want their patrons
standing outside the establishment to smoke, saying that inside, patrons can be monitored by bar staff. He said it would present
opportunities for criminal mischief or drinking outside the bar.
Van Roekel suggested the legislation could open casinos
up to litigation from employees who could file lawsuits against the establishment.
“If it’s a health issue,
then they should ban it from everywhere and make smoking illegal,” he said.
Van Roekel said the first step is
meeting with attorneys and choosing which argument to begin the legal action, then organizing the statewide meeting of all
bar and restaurant owners wishing to participate.
“Then we’ll put it in the hands of the court,”
said Van Roekel.
“I absolutely believe we can win this,” Carroll said.
A COBRA meeting to further
organize action against the smoking ban will be at 5:30 p.m. April 24 at Club 110, located at 110 Main Ave. in Clinton.
The attached articles
may give you some small measure of hope as you head into the Holiday Season. They would seem to indicate two possible outcomes for
SCHIP legislation in the new year. The Democratic House leadership prefers a five-year expansion of the SHIP program -- funded
by higher tobacco taxes -- so as to chalk up a quick, easy achievement for the Obama Administration. However, Senate Finance
Committee chairman Max Baucus is advocating a short-term reauthorization and expansion which would be included in an economic
stimulus package, in which case there would be no tax
increases on tobacco products. He would like SCHIP to eventually be folded into overall healthcare reform legislation. This will play out early in the New Year. We will continue to keep you informed.
Judge snuffs out state smoking ban cases
By MATT BUEDEL Journal
Star Posted Sep
30, 2008 @ 05:11 PM Last update Sep 30, 2008 @ 09:53 PM
PRINCETON,IL — A Bureau County judge essentially made the Smoke Free Illinois Act unenforceable
Tuesday by ruling that circuit courts had no jurisdiction to handle violations of the act. The decision by Associate Judge Cornelius Hollerich, combined with the rejection
of proposed regulations for the statute by the state earlier this year, appears to leave no recourse for the prosecution of
smokers cited for lighting up indoors in public places. The ruling came in the long-delayed case against Duane Alexander, who was ticketed for allegedly smoking
in a Spring Valley tavern in February. Alexander's lawyer, Peoria attorney Dan O'Day, said the ruling has immediate, far-reaching implications for the smoking
ban. "This ruling, if it's correct
- and we think it is - is that there's no way to enforce the Smoke Free Illinois Act right now," O'Day said. "There should
be no more arrests for smoking." Bureau
County State's Attorney Pat Herrmann declined to comment after the ruling Tuesday, though he could appeal the decision to
the Third District Appellate Court. A charge against a bartender at the tavern at the same time as Alexander was dropped earlier this year because Herrmann
said he didn't believe the statute required business owners or employees to prohibit smoking. Illinois Department of Public Health spokeswoman Melaney Arnold
said the department disagreed with Herrmann's decision about the bartender and the judge's ruling Tuesday. She also said the
law remains in effect and that it has been "successfully enforced in other circuit courts," though she could not immediately
provide examples. Hollerich, who
called the act "a little clumsy" and "drafted somewhat poorly," largely relied on the state health department's own proposed
rules in his decision that cases brought under the act should be handled administratively by the department and not by courts. "It does appear to the court, based on
the filings here, that the Legislature intended for the assessment of the fines to be imposed by an administrative agency,"
Hollerich said. "The statute itself does not contain the type of language one would normally find in the criminal code. .
. or motor vehicle code." Those
proposed rules were barred from taking effect by the Legislature's Joint Committee on Administrative Rules in January because
they lacked sufficient due process for people given citations under the act. The health department later voiced its intention
to file amended rules for consideration, but never did so. Arnold said the department has since been attempting to clarify the law through legislation, but
none of those attempts have reached successful votes. Matt Buedel
can be reached at 686-3154 or mbuedel@pjstar.com.
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| International Premium Cigar & Pipe Retailers Association (IPCPR) |
Spring 2008 Legislative Update | |
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With most state legislatures
back in session, here is a breakdown, state-by-state, of what is currently happening, being considered, and what may be on
the horizon in the coming months. As information and events change, we will provide updates. For a complete list of all state
issues, please go to IPCPR's Tobacco Legislation homepage. |
|
Alabama:
the State Senate is currently considering Senate Bill (SB) 229-a statewide smoking ban. While it exempts cigar bars, retail
tobacco shops, and outdoor areas, it will ban smoking in bars, bars within restaurants, and taverns, thereby severely curtailing
locations where your customers may enjoy their favorite tobacco products. At this time it is unclear what will happen with
this bill.
California:
A cigarette excise tax increase (Assembly Bill 1a (due to a prior voter-approved initiative, the other tobacco products (OTP)
excise tax, the tax applied to all tobacco products not classified as cigarettes, including premium, handmade cigars), is
coupled and also increases) failed in a state Senate Committee. A key component in the death of this tax increase was an economic
impact study, partly funded by the Cigar Association of America. This paper demonstrated and detailed the proposed $1.75 per
cigarette pack increase, due to the language of AB1a, would have in fact tripled the OTP excise tax rate, increasing the current
rate to 189%.
However, California is not out of
the woods yet as a faith-based coalition is working to place an initiative on the November 2008 General Election ballot to
increase the cigarette tax by 75-cents (resulting in a corresponding increase in the OTP excise tax rate). The petitioners
are reportedly attempting to raise funds for their campaign and collect enough signatures to put the issue before a vote.
However, supporters cannot begin collecting signature until the State Attorney General's office reviews the proposed initiative,
and officially assigns it a title and summary (both are required to be published on petition sheets). Following the publicly
gruesome death of Proposition 86 in the 2006 elections, it is not certain that the supporting group will succeed in collecting
enough money to get the tax increase proposal to the ballot. As this issue develops, we will keep you posted.
Assembly Bill (AB) 2088 proposes
a tobacco retailer to purchase an annual license for $100 per location. Currently, state retailers pay a one-time fee of $100
for a retail tobacco license. This bill is committee.
Iowa:
HB2212 proposes to ban smoking statewide. Despite retail tobacco shops being exempt, this bill will severely restrict where
premium tobacco customers may smoke, leading to a potential decline in retail sales, as has been witnessed in several states
with similarly enacted prohibitions.
IPCPR has initiated an Action Alert to challenge and ultimately defeat HB2212.
Kansas:
two bills are being considered in the legislature: SB542 proposes an increase in the OTP excise tax from 10% to 57%. This
bill is not likely to pass, though we will keep an eye on it. A second bill, SB493, proposes to ban public smoking statewide.
The Judiciary Committee, following testimony from IPCPR members and other witnesses, approved, by voice vote, to exempt retail
tobacco shops and cigar bars-an official vote was expected to take place shortly after the voice vote. Final disposition of
this bill is not known at this time. If necessary,
the IPCPR will initiate an Action Alert.
Kentucky:
House Bill (HB) 443 proposes an increase in the OTP excise tax from the current rate of 7.5% to 10%. The bill is currently
in the Revenue and Appropriations Committee.
Maryland:
A host of bills have been introduced in Maryland on a variety of issues-SB513 and HB1095, two identical (cross-over) bills
currently before their respective committees, seek to increase the state's OTP excise tax from the current rate of 15% to
25% to fund tobacco cessation and prevention programs in the state.
An Action Alert has been initiated to challenge these bills.
SB363 proposes a $20 surcharge on
all smoking pipes. As with the 2007 Fall Special Session, the Cigar Association of America (CAA), appears to have secured
an exemption in this bill for briar, clay, and meerschaum pipes.
Another "paraphernalia" bill that
would require detailed customer information collected at the time of the sale most likely will fail before gaining any ground.
HB609, would require cigars to be sold in packages containing a minimum of five cigars exempt retail tobacco shops (as defined
per the state's recently enacted statewide smoking prohibition).
Massachusetts:
HB2980, a bill that would increase the OTP excise tax from 30% to 45%, is currently in the House Revenue Committee. Following
this bill's introduction and assignment to the Revenue Committee, IPCPR retailers in the state collected petition signatures
from their customers urging the Committee to oppose that tax increase. These petitions were submitted to Revenue Committee
last month. We await further news of the tax increase proposal's disposition.
Mississippi-what's
there to say-several bills proposing to ban smoking in the state and increase taxes were introduced and then died in their
respective committees. One cigarette tax increase bill (from 18 cents to 68 cents per pack) has thus far survived the legislative
process. This demonstrates that even one of the most stalwart, fiscally-reasonable legislatures is not completely safe from
anti-tobacco legislation. We will continue monitoring legislation introduced in the capitol.
New Hampshire-Legislation
that proposed an increase in the cigarette tax and a reclassification of other tobacco products and a subsequent taxation
of cigars, failed in committee. The legislation would have subjected cigars (currently excluded from excise taxes) to a new
rate of 60%.
Several bills have been introduced
to revise the state's public smoking prohibition, though little is expected of these bills this session.
Oklahoma: SB1875 proposes to strike from the state's smoking ban exemptions for bars, restaurants,
and taverns. Retail tobacco shops will continue to be exempt from the state statute.
Pennsylvania:
several statewide smoking ban bills sit in their respective committees, seeing little action in recent weeks. We will continue
to monitor these bills.
Rhode
Island: Several bills have been introduced to revise the state's public smoking prohibition. No disposition
on these bills or projected prognostication is available at this time.
Virginia:
Several statewide smoking ban proposals failed to pass in the legislature. However, as the session has not yet adjourned,
any of these bills may be brought back for consideration by the legislature.
The IPCPR has initiated an Action Alert on this legislative issue.
Washington:
Following the approval of a 2006 ballot initiative that bans smoking statewide, including retail tobacco shops, efforts to
revise the state statute through the legislature have not gained enough support for success. An upstart coalition of Washington
IPCPR members has filed the initial paperwork for a ballot measure. The measure would ask voters to allow smoking in retail
tobacco shops and cigar bars. According to a recent independent, media-sponsored poll, an overwhelming majority of Washington
voters said they would vote in favor of such an initiative. We will keep you
posted on this ambitious plan. | |
| The International Premium Cigar and Pipe Retailers
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 | |
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| International Premium Cigar & Pipe Retailers Association (IPCPR) |
Federal Legislative Update--Veto Override Fails | |
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House Fails to Override Presidential Veto of SCHIP Program
for the Third Time
January 23, 2008- The U.S. House of Representatives again failed leadership again failed to win over enough Republicans
to override President Bush's veto of a children's health insurance bill Wednesday.
| |
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| International Premium Cigar & Pipe Retailers Association (IPCPR)
Chris McCalla
Legislative Director | |
| | |
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| International Premium Cigar & Pipe Retailers Association (IPCPR) |
Federal Legislative Update | |
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U.S. House of Representatives Votes Today on SCHIP Veto Override
Veto Override Expected to Fail
January 23, 2008 - The U.S. House of Representatives will vote today in an attempt to override President
Bush's third veto of the now controversial State Children's Health Insurance Program (SCHIP). The president has previously
vetoed two other SCHIP proposals. Popular consensus remains that today's congressional attempt to override the
president will again fail, for a third time.
Last month, President Bush did sign into law a bill extending the current SCHIP program until March 31, 2009.
Once the final vote is available, an update will be sent to all IPCPR members. I encourage you to share this news with
your customers, family, and friends. | |
|
The International Premium Cigar and Pipe Retailers 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 | | | |
|
|
| International Premium Cigar & Pipe Retailers Association (IPCPR) |
Federal Legislative Update | |
|
Current SCHIP Program to be Extended to 2009
Veto Override Attempt of Current SCHIP Legislation Unlikely
As you know, the President vetoed the current SCHIP legislation on December 12. The House leadership
has scheduled a vote for January 23 to attempt to override that veto. It appears that the House will not be able
to muster the 2/3 vote necessary to override the veto.
Late last week there was talk regarding a short term extension of  the current SCHIP program through March 31, 2008. However, on December 17, negotiators agreed to extend the
current SCHIP program through March 31, 2009 with a small increase in funding necessary for the states to maintain
their current enrollment through that date. There will be no increase in tobacco taxes to fund that modest increase.
While it is always possible that Democrats will introduce another SCHIP bill in 2008 to force Republicans to vote on
the issue, it now appears likely that the issue will be pushed into 2009. | |
| The International Premium Cigar and Pipe Retailers
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) |
Federal Legislative Update | |
|
House Votes To Put Off SCHIP Veto Override Vote
Until January 23rd
After President George W. Bush vetoed legislation aimed at expanding the State Children's Health Insurance Program
(SCHIP) by $35 billion over five years, the US House voted 211-180 late on December 12th to put off a vote on overriding the
president's veto until January 23rd, coinciding with the week Bush comes to Congress for the State of the Union address.
President Bush vetoed the SCHIP bill in private and said in a statement notifying Congress of his decision that the legislation
was unacceptable because it still allows adults into the program, would cover people in families with incomes above the U.S.
median, and raises taxes. He urged Congress to extend the program at its current funding level before lawmakers go on
their holiday break. Congressional leaders already said they will now try to extend the SCHIP into 2008 in its current
form (AP 12/13). |
House Lacks Votes for Successful Veto Override
Despite the House Vote calling for a veto override, currrently, there is not enough support among members of the
House of Representatives to produce the necessary two-thirds "yea" votes to override President Bush's veto of the SCHIP
proposal.
Alternative funding proposals continue to be discussed and reviewed among congressional leaders, IPCPR lobbyists,
and IPCPR manufacturing (associate) members. | |
|
| International Premium Cigar & Pipe Retailers Association (IPCPR)
Chris McCalla
Legislative Director | |
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| International Premium Cigar & Pipe Retailers Association (IPCPR) |
Federal Legislative Update | |
|
| President Bush Vetoes SCHIP Expansion Bill For The Second Time
President George W. Bush on December 12th vetoed for the second time legislation aimed at expanding the State Children's
Health Insurance Program (SCHIP) by $35 billion over five years exclusively funded by increases in the Federal excise
tax rates on tobacco products, saying "our nation's goal should be to move children who have no health insurance to private
coverage, not to move children who already have private health insurance to government coverage."
President Bush had vetoed the original SCHIP bill on October 3rd,  arguing that the $35 billion expansion is too costly, took the program too far from its original intent to help the poor,
and would be a step toward federalizing healthcare. The US House on October 18th sustained the presidential veto in a 273-156
vote. In a bid to win over more Republicans, US House Democrats on October 24th proposed a new version of the SCHIP bill that
retained the amount of expansion and funding source, but tightened eligibility rules, generally barring coverage to illegal
immigrants, childless adults and children of families with incomes exceeding three times the poverty level. However, the revised
measure secured a veto-proof margin only in the Democrat-controlled Senate, while House Republicans held enough of their members
together to sustain a presidential veto. With only a few days left in the congressional session, it is not clear if Congress
would schedule a veto override vote, which is expected to almost certainly fail (Politico.com 12/12). |
Extension Expected to be Approved by Congress
As we are in constant contact with our federal lobbyists who have been closely monitoring this SCHIP issue, popular
consensus, both public, from the media, and more private channels within the "Beltway," holds that a veto override
vote will fail for there remains the lack of support to muster a two-thirds vote in the House of Representatives
to override the president's veto.
At this point, as the current congressional extension (following the first failed veto override vote) for
SCHIP program expires December 14th, there will most likely be another extension to fund the program into 2008.
As this issue continues becoming more contentious on Capitol Hill, we urge all of you to remain calm, but vigilant. At
this time, it is not necessary to contact your Congressmen and urge them to oppose a veto override attempt, as there is not
enough support to approve such a legislative attempt.
The current Congressional session adjourns Dec. 22. | |
|
The International Premium Cigar and Pipe Retailers (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) |
Federal Legislative Update | |
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Congress Adjourns With No Resolution On SCHIP Compromise
November 16, 2007
The House recessed Thursday night and
the Senate will leave Friday until December 4, with no further progress on federal State Children's Health Insurance Program
(SCHIP). Legislators continue to wrangle over how much of an expansion should be included in the program's renewal. The currently
proposed legislation calls for increased federal tobacco excise taxes, including a new excise rate on cigars of 53.19% of
the manufacturer's price, with no one cigar being taxed more than $3.
The bill, HR 3963, has passed both the House and Senate, but not by margins that make the bill veto-proof. President
Bush remains adamant on his veto stance.
Congress leaves SCHIP hanging, and according to reports the "final offer" tendered by House Republican
negotiators was deemed a disaster by Democrats, who said it would fall well short of covering the required 10 million
children.
They'll try again in December, but Sen. Orrin Hatch (R-Utah) said the chances for reaching a deal before
the end of the year are substantially less following the failure of the pre-Thanksgiving push.
The more likely outcome is an extension of current law benefits, and perhaps through September 2008.
Negotiations continue behind closed doors between IPCPR and CAA lobbyists with finance committee members and the congressional
Joint Committee on Taxation (JCT). These negotiations continue to progress, albeit, at a very slow pace.
More than anything else, we urge you to continue with a "business as usual" attitude. Through our efforts
from our lobbyists and the citizen-lobbyists, comprised of industry manufacturers and retailers, our story has finally
penetrated the core of Capitol Hill--Congress knows who we are and what is at stake for our industry if current
proposals for SCHIP become implemented. We are making a difference--key congressional players are working closely with the
IPCPR to work on a compromise to that all involved may agree.
More to follow when new information comes in. | |
| The International Premium Cigar and Pipe Retailers 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. | | |
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| International Premium Cigar & Pipe Retailers Association (IPCPR) |
Federal Legislative Update | |
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SCHIP: Round Two
Legislation Will Most Likely Fail Again Leading to Compromise Bill for Round Three
October 30, 2007- The
fight in Congress over SCHIP funded by increase tobacco excise taxes, specifically, the exorbitant increase in handmade cigar excise
taxes, continues. House Resolution (HR) 3963, contains few significant changes that will persuade opposing
Republicans to change their vote on the proposed expansion of the now controversial government-funded children's
healthcare program. HR3963 passed the House of Representatives in a floor vote on October 26 by a margin of
265-142, seven votes short necessary to override a likely presidential veto.
Because H.R. 3963 has not addressed in a meaningful way the objections
that caused the President to veto H.R. 976, the President will veto this legislation if it is presented to him without significant
changes.
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What Will Happen Next
According to many sources, including IPCPR's federal lobbyists, HR3963 will not
survive the legislative cycle. We expect the president to veto HR3963 and the potential veto override vote will fail. Following
the Republican Caucus last week, Republicans will stand opposed to the current SCHIP expansion proposal, leading to Round
Three and opening the issue to legitimate compromises for the cigar industry. | |
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| International
Premium Cigar & Pipe Retailers Association (IPCPR)
Chris McCalla
Legislative Director | |
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Congress begins Round Two on SCHIP Proposal
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