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The Library => The SGA => Topic started by: Tarheel on February 04, 2009, 04:16:56 PM

Title: S-CHIP fixing to be signed into Law
Post by: Tarheel on February 04, 2009, 04:16:56 PM
I know that the S-CHIP doesn't mean much to most of you X'ers but most of you will know how much I've ranted on it in this forum because of the significant increase in taxes on tobacco products...namely cigars!

Here's the most recent thread with my rant: http://tigersx.net/forum/index.php?topic=4394.0

It just passed Congress (this afternoon) and The ONE is set to sign it this very afternoon.

All of you X'er cigar smokers who don't buy online might want to go and buy your cigars now before the increased tax goes into effect.

I really hate this :mad:, as usual, all emphasis and sub-text is my own:

Quote
updated 1 minute ago

Democrats show their strength as House passes kids' health bill
[4 Feb 2009]

WASHINGTON (CNN) -- The newly empowered Democratic majority flexed its political muscle Wednesday as the House of Representatives voted to expand a key federal health care program to an estimated 4 million additional children.

The 290-135 vote to expand the State Children's Health Insurance Program fell largely along party lines, with almost every Democrat voting in favor of the expansion and most Republicans voting against it.

President Obama is expected to sign the bill late Wednesday afternoon; the Senate passed it Friday.

"As the worsening economy causes families to lose their jobs and health insurance, it is vital that we redouble our efforts to ensure that every child in America has access to affordable health care," the president said in a statement after Senate passage last week.

The program, known as SCHIP, currently covers more than 6 million children whose parents earn too much to qualify for Medicaid -- the federal health insurance program for the poor -- but who can't afford private insurance.

The bill approved by Congress expands SCHIP by roughly $35 billion over five years. It will be financed with a 62-cent-per-pack increase in the federal tax on cigarettes.
*
AND A HEAVY TAX ON CIGARS!

Opponents of the legislation have argued that, among other things, it will allow undocumented immigrants to illegally access taxpayer-financed health care, and is insufficiently funded.

President Bush vetoed two similar bills in 2007, arguing at the time that the legislation would have encouraged families to leave the private insurance market for the federally funded, state-run program.

I guess "smoke 'em while you got 'em" is in order!

The link:

http://www.cnn.com/2009/POLITICS/02/04/schip.vote/?iref=mpstoryview (http://www.cnn.com/2009/POLITICS/02/04/schip.vote/?iref=mpstoryview)
Title: Re: S-CHIP fixing to be signed into Law
Post by: Tiger Wench on February 04, 2009, 04:30:55 PM
What is the salary threshhold set at?  At one time I remember hearing $85K - yet $250K makes you rich?  The Socialists better be careful not to hoist themselves on their own petard by arbitrarily assigning numbers to "you are rich" and "you are not rich"...
Title: Re: S-CHIP fixing to be signed into Law
Post by: Thrilla on February 04, 2009, 05:12:34 PM
Whoa...62 cents per pack on cigs?  HOLY SHIT!  That's gonna push a pack of smokes over $5 here in da ATL.  Good thing I "quit". :bag:
Title: Re: S-CHIP fixing to be signed into Law
Post by: Tarheel on February 04, 2009, 05:14:07 PM
What is the salary threshhold set at?  At one time I remember hearing $85K - yet $250K makes you rich?  The Socialists better be careful not to hoist themselves on their own petard by arbitrarily assigning numbers to "you are rich" and "you are not rich"...

My understanding is that the threshold was set at $88,000.00 for a family of four.  But families can use adjustments to household income on a state-by-state basis using deductions therefore families with incomes higher than $88,000.00 can qualify for this health care program.

Maybe that is good news for some.

I think it's just the beginning of a nationalized health care program...but that's another rant.
Title: Re: S-CHIP fixing to be signed into Law
Post by: Tarheel on February 04, 2009, 05:16:13 PM
Whoa...62 cents per pack on cigs?  HOLY SHIT!  That's gonna push a pack of smokes over $5 here in da ATL.  Good thing I "quit". :bag:

Fed-Gov better make sure that smokers don't quit in order to support this monstrosity...in fact, a lot more people will need to start smoking over the next five years.

By the way, tobacco taxes are the ONLY source of funding for this program.
Title: Re: S-CHIP fixing to be signed into Law
Post by: Thrilla on February 04, 2009, 05:41:09 PM
Fed-Gov better make sure that smokers don't quit in order to support this monstrosity...in fact, a lot more people will need to start smoking over the next five years.

By the way, tobacco taxes are the ONLY source of funding for this program.

I would say that increased costs just may have this opposite effect and cause more people to kick the habit because they can't afford it...but statistics show that price is no object and that over the years, more people quit due to health reasons and not because of economical woes.
Title: Re: S-CHIP fixing to be signed into Law
Post by: AUTailgatingRules on February 04, 2009, 10:34:24 PM
Fed-Gov better make sure that smokers don't quit in order to support this monstrosity...in fact, a lot more people will need to start smoking over the next five years.

By the way, tobacco taxes are the ONLY source of funding for this program.

I assume this inclides smokeless tobacco as well?
Title: Re: S-CHIP fixing to be signed into Law
Post by: AUTiger1 on February 04, 2009, 11:20:51 PM
I assume this inclides smokeless tobacco as well?

I would assume so as well.  Which this also bothers me.  Not only do I smoke 3-5 cigars a week, I probably dip 4 to 5 cans of Copenhagen as well.
Title: Re: S-CHIP fixing to be signed into Law
Post by: Tarheel on February 04, 2009, 11:22:34 PM
I assume this inclides smokeless tobacco as well?

All tobacco products will be affected including cigarette papers and tubes along with loose tobacco.
Of course, I ONLY selfishly care about cigars; I am sure that I've been more than obvious in my bias.

I would say that increased costs just may have this opposite effect and cause more people to kick the habit because they can't afford it...but statistics show that price is no object and that over the years, more people quit due to health reasons and not because of economical woes.

Sir, this is a serious forum.  Keep your conjecture to yourself unless you have fax and figures to back it up.
 :poke:
Title: Re: S-CHIP fixing to be signed into Law
Post by: Tarheel on February 04, 2009, 11:42:50 PM
I would assume so as well.  Which this also bothers me.  Not only do I smoke 3-5 cigars a week, I probably dip 4 to 5 cans of Copenhagen as well.

Alright, I just confirmed that it does affect practically all forms of consumer tobacco products including smokeless tobacco.  Short answer is all tobacco products will increase at the retail level effective 1 Apr 2009.  And if you're a tobacco retailer or wholesaler you get to pay a hefty tax on your floor inventory due by 1 Aug 2009.

This stuff will bore you to tears; the revenue stream for the new S-CHIP program comes from modifying Section 5701 of the Internal Revenue Code.  What I'll post below is the excerpt from the revenue section of the new S-CHIP bill followed by the actual code that it modifies if anyone is so inclined to review it.  There are also links to the actual bill and the revenue code:

The new S-CHIP bill revenue provisions:

Quote
...
TITLE VII REVENUE PROVISIONS

SEC. 701. INCREASE IN EXCISE TAX RATE ON TOBACCO PRODUCTS.

      (a) Cigars- Section 5701(a) of the Internal Revenue Code of 1986 is amended--

            (1) by striking `$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)' in paragraph (1) and inserting `$50.33 per thousand',

            (2 ) by striking `20.719 percent (18.063 percent on cigars removed during 2000 or 2001)' in paragraph (2 ) and inserting `52.75 percent', and

            (3) by striking `$48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001)' in paragraph (2 ) and inserting `40.26 cents per cigar'.

      (b) Cigarettes- Section 5701(b) of such Code is amended--

            (1) by striking `$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)' in paragraph (1) and inserting `$50.33 per thousand', and

            (2 ) by striking `$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)' in paragraph (2 ) and inserting `$105.69 per thousand'.

      (c) Cigarette Papers- Section 5701(c) of such Code is amended by striking `1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)' and inserting `3.15 cents'.

      (d) Cigarette Tubes- Section 5701(d) of such Code is amended by striking `2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)' and inserting `6.30 cents'.

      (e) Smokeless Tobacco- Section 5701(e) of such Code is amended--

            (1) by striking `58.5 cents (51 cents on snuff removed during 2000 or 2001)' in paragraph (1) and inserting `$1.51', and

            (2 ) by striking `19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)' in paragraph (2 ) and inserting `50.33 cents'.

      (f) Pipe Tobacco- Section 5701(f) of such Code is amended by striking `$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)' and inserting `$2.8311 cents'.

      (g) Roll-Your-Own Tobacco- Section 5701(g) of such Code is amended by striking `$1.0969 cents (95.67 cents on roll-your-own tobacco removed during 2000 or 2001)' and inserting `$24.78'.

      (h) Floor Stocks Taxes- ...

The Link: http://thomas.loc.gov/cgi-bin/query/F?c111:1:./temp/~c111RW5wOp:e324143:
***Be forewarned, this link my not exactly work since this website does require a refreshed search; Doing a search on "H.R. 2" will get you back to the raw data.

Here's the excerpt from Internal Revenue Code Section 5701 that is modified by this bill (to increase revenue for S-CHIP):
Quote
Sec. 5701. Rate of tax
 
    (a) Cigars
      On cigars, manufactured in or imported into the United States,
    there shall be imposed the following taxes:
      (1) Small cigars
        On cigars, weighing not more than 3 pounds per thousand, $1.828
      cents per thousand ($1.594 cents per thousand on cigars removed
      during 2000 or 2001);
      (2) Large cigars
        On cigars weighing more than 3 pounds per thousand, a tax equal
      to 20.719 percent (18.063 percent on cigars removed during 2000
      or 2001) of the price for which sold but not more than $48.75 per
      thousand ($42.50 per thousand on cigars removed during 2000 or
      2001).
    Cigars not exempt from tax under this chapter which are removed but
    not intended for sale shall be taxed at the same rate as similar
    cigars removed for sale.
    (b) Cigarettes
      On cigarettes, manufactured in or imported into the United
    States, there shall be imposed the following taxes:
      (1) Small cigarettes
        On cigarettes, weighing not more than 3 pounds per thousand,
      $19.50 per thousand ($17 per thousand on cigarettes removed
      during 2000 or 2001);
      (2) Large cigarettes
        On cigarettes, weighing more than 3 pounds per thousand, $40.95
      per thousand ($35.70 per thousand on cigarettes removed during
      2000 or 2001); except that, if more than 6 1/2 inches in length,
      they shall be taxable at the rate prescribed for cigarettes
      weighing not more than 3 pounds per thousand, counting each 2 3/4
      inches, or fraction thereof, of the length of each as one
      cigarette.
    (c) Cigarette papers
      On cigarette papers, manufactured in or imported into the United
    States, there shall be imposed a tax of 1.22 cents (1.06 cents on
    cigarette papers removed during 2000 or 2001) for each 50 papers or
    fractional part thereof; except that, if cigarette papers measure
    more than 6 1/2 inches in length, they shall be taxable at the rate
    prescribed, counting each 2 3/4 inches, or fraction thereof, of the
    length of each as one cigarette paper.
    (d) Cigarette tubes
      On cigarette tubes, manufactured in or imported into the United
    States, there shall be imposed a tax of 2.44 cents (2.13 cents on
    cigarette tubes removed during 2000 or 2001) for each 50 tubes or
    fractional part thereof, except that if cigarette tubes measure
    more than 6 1/2 inches in length, they shall be taxable at the rate
    prescribed, counting each 2 3/4 inches, or fraction thereof, of the
    length of each as one cigarette tube.
    (e) Smokeless tobacco
      On smokeless tobacco, manufacturered (FOOTNOTE 1) in or imported
    into the United States, there shall be imposed the following taxes:
       (FOOTNOTE 1) So in original.  Probably should be
    ''manufactured''.
      (1) Snuff
        On snuff, 58.5 cents (51 cents on snuff removed during 2000 or
      2001) per pound and a proportionate tax at the like rate on all
      fractional parts of a pound.
      (2) Chewing tobacco
        On chewing tobacco, 19.5 cents (17 cents on chewing tobacco
      removed during 2000 or 2001) per pound and a proportionate tax at
      the like rate on all fractional parts of a pound.
    (f) Pipe tobacco
      On pipe tobacco, manufactured in or imported into the United
    States, there shall be imposed a tax of $1.0969 cents (95.67 cents
    on pipe tobacco removed during 2000 or 2001) per pound (and a
    proportionate tax at the like rate on all fractional parts of a
    pound).
    (g) Roll-your-own tobacco
      On roll-your-own tobacco, manufactured in or imported into the
    United States, there shall be imposed a tax of $1.0969 cents (95.67
    cents on roll-your-own tobacco removed during 2000 or 2001) per
    pound (and a proportionate tax at the like rate on all fractional
    parts of a pound).
    (h) Imported tobacco products and cigarette papers and tubes
      The taxes imposed by this section on tobacco products and
    cigarette papers and tubes imported into the United States shall be
    in addition to any import duties imposed on such articles, unless
    such import duties are imposed in lieu of internal revenue tax.

The Link:
http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._5701._Rate_of_tax (http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._5701._Rate_of_tax)

Bored to tears... :blah:
Title: Re: S-CHIP fixing to be signed into Law
Post by: Jumbo on February 05, 2009, 04:20:04 AM
I quit dipping Skoal when it went over 3 dollars a can, Now I just drink Whiskey and Beer. I love the goverment pricing me out of my favorite habits, bastards.
Title: Re: S-CHIP fixing to be signed into Law
Post by: JohnDeere on February 05, 2009, 09:07:21 AM
I'm still under the income threshold......I'm seriously thinking about trying to sign my kid of this SCHIP, just so I can help it become a bigger burden on the taxpayers and hopefully help get it reversed.
Title: Re: S-CHIP fixing to be signed into Law
Post by: ggraf71 on February 05, 2009, 01:24:16 PM
So basically, its cheaper to smoke weed. Woo hoo. I'm way ahead of the curve!
Title: Re: S-CHIP fixing to be signed into Law
Post by: GarMan on February 05, 2009, 01:44:52 PM
At least for cigars, this new gubm'et intrusion is encouraging me to smoke larger and higher end cigars.  On the other hand, those cheaper make-believe cigars are getting the shit taxed out of them.  Ha-ha...  What a bunch of idiots...   :rofl:

Title: Re: S-CHIP fixing to be signed into Law
Post by: Thrilla on February 05, 2009, 05:58:54 PM
So basically, its cheaper to smoke weed. Woo hoo. I'm way ahead of the curve!

I hear ya.  The gubment is too stupid to legalize it...just think of the tax revenue they could bring in from it.  If you can't think of that because you just took a huge bong rip, see The State of California.  They have made millions off of taxing legalized marijuana (only used for medicinal purposes, of course.)
Title: Re: S-CHIP fixing to be signed into Law
Post by: Tarheel on February 05, 2009, 11:50:31 PM
I hear ya.  The gubment is too stupid to legalize it...just think of the tax revenue they could bring in from it.  If you can't think of that because you just took a huge bong rip, see The State of California.  They have made millions off of taxing legalized marijuana (only used for medicinal purposes, of course.)

And, yet, they are still broke:

Quote
California Broke in 70 Days, Warns Controller

Posted By: C. Johnson, Internet News Producer 

SACRAMENTO, CA - State Controller John Chiang informed the governor and state Legislature Monday that California will run out of cash in less than 70 days without action.

Read Chiang's letter here.

The state is in the red $14.8 billion this fiscal year and is facing a projected $41.8 billion deficit in the next 18 months.
...

Full article:
http://www.news10.net/news/local/story.aspx?storyid=52277 (http://www.news10.net/news/local/story.aspx?storyid=52277)