Stay Informed

Sign up for news & alerts

Already signed up?
Login here

take action
For every $1 states spend dollar sign on substance misuse and addiction, 94 cents go to shovel up the consequences instead of for treatment and prevention. TELL YOUR LEGISLATORS

What Can I Do?



Continuing Education
Free online courses for addiction counselors LEARN ONLINE

Get Help
Need alcohol or drug help for yourself or someone else? GET HELP

 

Senate Passes SCHIP Bill with Federal Tobacco Tax Increase
January 30, 2009

Share Share Email
Email
Print
Print
SubscribeSubscribe
News Summary

The U.S. Senate voted 66-32 this week to approve a major expansion of the State Children's Health Insurance Program (SCHIP), funded with a 61-cent-per-pack increase in the federal tobacco tax, Reuters reported Jan. 30.

The $32.8-billion SCHIP bill would expand eligibility for the health-insurance program to an additional 11 million children; about 7.4 million kids are covered by SCHIP now. The measure was passed twice last year, but vetoed both times by President George Bush.

A similar measure has already passed the House of Representatives, and House Speaker Nancy Pelosi said a final vote could come next week after differences between the two bills are ironed out.

Some critics objected to the bill because it would allow states to enroll moderate-income families and does not include a ban on legal immigrants from getting coverage unless they have been in the U.S. for at least five years.

COMMENTS ON THIS ARTICLE:

Posted by Ann Lee on 02 Feb 09 02:35 PM EST
As a smoker I am alarmed. Barack Obama said he would not raise taxes on anyone earning less then $250k. That's me! Has anyone done the math on this? Another source stated that RYO(roll your own)will go up over $23 per pound. I have rights and why should one shrinking group of people flip the bill for the expansion of a federal program? Call Obama at 202-540-3000. Press 2 for a live person and don't fall for the email trick. Tell the staff person to take down your name, address and phone number. Then tell the person to deliver this message to President Obama.... Be a man of your own word and keep your promise not to raise taxes on any American making under $250k and this includes not raising cigarette and tobacco taxes.

Posted by Bill Godshall on 02 Feb 09 04:10 PM EST
The $.61/pack cigarette tax hike will reduce nationwide consumption by about 7% (24 billion cigarettes or 1.2 billion packs per year), reduce youth consumption by about 14%, and cause about 2 million (of the 45 million) cigarette smokers to quit. As a percentage of retail price, the federal cigarette tax rate will increase from 10% to 21%, which is still significantly lower than in past decades (e.g. 42% in 1954, 38% in 1964) before the many health hazards of smoking were known, and significantly lower than the cigarette tax rate in many other countries. An additional $2/pack tax increase is still necessary for cigarettes to pay all of the healthcare costs they impose upon the federal governement (Medicare, Medicaid, VA).

Posted by Michael J. McFadden on 02 Feb 09 10:31 PM EST
Bill Godshall wrote above, "The $.61/pack cigarette tax hike will reduce nationwide consumption by about 7%" even though it's been clearly pointed out to him on Dr. Siegel's TobaccoAnalysisBlog that if those calculations were true then smoking in New York City would have been cut by two-thirds after their $3.50 or so tax increases in 2002/03. I consider it hypocrisy on his part that he would repeat this contention here without trying to defend his figures in front of his regular audiences. = = = = As for Ann Lee, you are correct: the SCHIP tax will increase taxation on one of the very poorest of the poor of minority groups in America, those who can't even afford to buy a pack of cigarettes and roll their own instead. It will hit them with a tax increase of OVER TWO THOUSAND PERCENT on their tobacco. = = = = = And this comes from a president who promised he wouldn't raise taxes on anyone earning less than $250,000??? = = = = = Michael J. McFadden, Author of "Dissecting Antismokers' Brains"

Posted by maureen searles on 04 Feb 09 02:03 PM EST
I don't see any taxes being added to alcohol. I enjoy coffee and cigarettes. I pay my own health insurance, I have no dental. I have a $500 deductible per person for medical coverage and another $500 deductible for prescription coverage. Why do I have to pay for other people to have free dental work. My husband is self employed, he works about 10 hours a day hauling garbage. We pay taxes, we work, we enjoy a cup of coffee and a cigarette. We do not vacation or enjoy lavish living. WE pay for all of our own dental work. Why do I have to support other people? I don't get it.

Posted by Karen White on 05 Feb 09 05:24 PM EST
As the child of two (dead) smokers who will suffer the effects of exposure to their smoking for the rest of my life, I applaud the new federal tax. Smoking is a choice (a poor one) and therefore paying the tax is also a choice. Health care costs due to smoking run in the billions for each state every year. Even with private health insurance, smokers are pooling their risks with non-smokers. That isn't fair! Even with the extra tax, smokers are still not paying their way. Nicotine is an addictive drug so of course some smokers 'enjoy' the effects and withdrawal is uncomfortable but so is dying fom lung cancer; especially for the 40-50,000 non- smokers who die each year from esposure to second hand smoke. There is help if you want to quit; for you I have great sympathy and encourage you to never give up trying to quit. As for the rest of you smokers, I have no sympathy for you. Stop whining and start paying your way--and keep your toxic poisons to yourself! I have seen your children suffer!!!!!!!!

Posted by Mark K on 05 Feb 09 08:02 PM EST
Making a small percentage of the population pay for/support a program that benefits everyone seems right?. Smokers are the social pariah these days.... why not make them pay for programs so you don't have to. I'm a smoker (for now) but as soon as this tax hits - I'm done. Some of you will say good for me - but in reality it's a hollow gesture... so keep it to yourselves. With any luck - the government will pass a "fat tax" so all you obese people can pay up. Maybe they will even pass a law for genetic testing so that people who are prone to produce "genetically flawed offspring" can start paying their fair share to. And what about people who have babies that can't afford them... placing a huge burden on society to care for the kids they could not provide for. State sponsored sterilization sounds like a good answer for you too. Be careful what you wish for guys - you might just get it - and a whole lot more.

Posted by Barbara Miller on 08 Feb 09 08:25 AM EST
I am a smoker and I think this is just another attempt to control the behavior of Americans. The people in Washington that voted for this bill have got to know that taxing cigarettes won't pay for the SCHIP program. So this is just a back-handed way to get us to quit. I am sick of the government control in our lives!

Posted by Anonymous on 14 Feb 09 11:39 AM EST
now are you ready for this there is no tax increase on Alcohol ? and this is for those ppl who are say oh 40 to 50 thousand ppl die cuz of smoking,Every year in the United States, more than 40,000 babies are born with some degree of alcohol-related impairment. Although many, if not most, women understand that excessive drinking during pregnancy can lead to birth defects, many woman, apparently, are unaware or do not comprehend that moderate or even light drinking can seriously impair or harm the unborn fetus.Additionally, drinking increases the risk of death from motor vehicle accidents as well as recreational and work-related injuries. Not only this, but suicides and homicides are more likely to committed by people who have been drinking. In simple economic terms, alcohol-related issues and problems in the United States cost society almost $200 billion per year.

Posted by Anonymous on 14 Feb 09 11:40 AM EST
In human terms, the cost of the following alcohol-related issues cannot be calculated: broken homes, child abuse, fatalities, injuries, illnesses, wife battering, failed health, and destroyed lives. Moreover, the consequences of alcoholism do not necessarily stop with the recovery or the death of the alcoholic. Indeed, evidence to support this claim can be substantiated by children of alcoholics or adult children of alcoholics.now tell me which one kills more and break homes smoking or drinking , and guess what if they raise the tax on alcohol they will get there money sooner cuz a lot more ppl drink then smoke

Posted by John Berger on 15 Feb 09 02:26 AM EST
Smokers save the government money by dying sooner on average after retirement. People who live longer after retirement are sucking up more government money by recieving more social security checks. Using smokers as money-making-slaves goes against fairness, justice, freedom and the principles laid down by the founding fathers of this country. Higher tax rates on tobacco as compared to other unhealthy things like candy bars and french frys is discrimination against smokers.

Posted by Dopeydale on 15 Feb 09 06:46 AM EST
ALL States received millions in the tobacco lawsuits. Ohio used the money to fund the mandatory Emissions tests on cars.Why did they not use the millions for healthcare? If the goverment is going to tax smokers, they should also tax other things.Alcohol adds billions to health care expenses. They could also tax candy, soda pop, snacks, jewelry, Etc. Why not pass a federal sales tax on everything! Why not increase income tax and be done with it. It is enivitable that taxes WILL be increased. The Billions of dollars that the Bailout,stimulus,Wars we are in is ALL going to be paid by everyone in the NEAR future. Our current new goverment officials should hold accountable and PROSECUTE the Goverment officials, Banking executives, Wall street and the rich people who robbed the American citizens blind. They could recover Billions that was obtained by illegal means. Lets start with all the goverment officials who looked the other way while all the GREED and robbing was going on. Greed is the ROOT of the economic situation this country is in. IT IS TIME TO TAKE IT BACK! Punish the guilty people! Our politicians and officials are all college eductaed but they sure are not very bright !

Posted by Dee on 16 Feb 09 05:18 AM EST
This is outrageous! To continually collect revenue from tabacco users is a cowards way of not owning up to the real issue, "air pollution". Why not tax the liquid courage they drink everyday and make this a fair shake. Alcohol Kills too! Not only does it kill the alcohol users, but innocent people too. In regards to second hand smoke, killing people, thats a bunch of crap! This is just another ploy to distract the American people of the real issue that's killing us, the air we breathe, Period! It is so polluted, but the government won't tell you that, they can't take responsiblity, so lets' put the blame on cigarette smokers, How Lame! Wake up people! Everyone needs to think for themselves, it is time we quit letting Government think for us. Besides why is everyone thinking this one simple issue will save their lives, we're all doomed to die one day, no matter what we do, so quit trying to find the fountain of youth, and enjoy yourselves whatever your vice is, you're not here forever, thats for sure! We're all gonna die from something, someday, period.

Posted by Anonymous on 16 Feb 09 05:26 AM EST
Stop picking on the smokers! Start taxing alcohol, this is as deadly as smoking. It's time the Government played fair with taxing crap. Here are some Federal Govt statistics of the effects of drinking: Alcohol Statistics More than 100,000 U.S. deaths are caused by excessive alcohol consumption each year. Direct and indirect causes of death include drunk driving, cirrhosis of the liver, falls, cancer, and stroke.1

Posted by anonymous on 16 Feb 09 01:48 PM EST
if we are taxing smokers for this vice. what about the millions of obese americans? the medical cost for complications this deadly disease is very high as well. would food not be considered a vice in that case? maybe americans with a high bmi should be taxed on there food? In any case why are single out one group of americans to pay the cost of this insurance policy. shouldnt we all just get a job and pay for our own insurance, as my husband does for our family? i am sorry for children whos perants wont work but why should my family have to foot the bill for these lazy perants?

Posted by Melissa on 16 Feb 09 03:03 PM EST
Non smokers are happy of course. Did people ever stop and realize that tobacco isn't the only thing that causes deaths? Why not tax alcohol? Do you ever hear many mention how many deaths are caused by alochol? I'm not only talking about driving related accidents. Alcohol also causes health issues not just to a newborn child but to anyone. Alcohol destoyed my life. Growing up and living around it as a child. I grew up in a neglected/abusive household because of it and not too mention I have watched two people die from extenssive stomach ulcers because of it. Alcohol can also place you at risk for cancer and let's not even forget what damage it does to one liver. In a way alcohol is as bad as second hand smoking. If you have to live around an alcoholic on a daily basis your more prone to picking it up yourself or suffering from permanent mental health issues. You know why alcohol isn't as much an issue as tobacco because the majority of lawmakers themselves drink..heck alot of non smokers even do as well. Think on that one

Posted by Angela Elliott on 16 Feb 09 07:46 PM EST
My income is 7848 per year. The only way I can afford to smoke is the RYO without the tax raise. I gave up drinking alcohol because I couldn't afford. What's next? When do I reap the benefits of all this tax I will be paying as a low-income person?

Posted by Steve Whitney on 18 Feb 09 01:23 PM EST
The additional tax on tobacco should be overruled. You are making this country a communistic country by doing so. If you raise taxes on a particular item. You are telling the american people what and what they cannot do or forcing them into conforming... communisium. Why did we have a Boston Tea Party..(The British)... Think about it and dont be to hasty about passing things into law. How many jobs are lost because of this tobacco tax increase? so therefore how many homes are to be forclosed do too this law... I have to alternatives methods to raise money for this cause - have the manufacturing polluters pay for not conforming or have the other countries that owe us money pay or better yet use some of the money spent in Irac or stop the war (killing) and use that money. As for younger kids smoking... make it 21 years old and no smoking within 100 yards of schools. We the people, want freedom and the right to prosper in "AMERICA".. "We The People" it states.. not "We the Government will tell you what you will do" Raise your taxes to make you conform.

Posted by anon on 22 Feb 09 03:35 PM EST
I, too, will have to quit smoking, so there is tax money the gov. won't get from me or the other ppl who will have to quit....not going to pay for much without the taxes coming in.

Posted by dave mi on 28 Feb 09 01:36 AM EST
The POWER of TAXation is the POWER to relieve me of my RIGHT to my PROPERTY (Bill of Wrongs): their view of the Constitution. We voted these pinheads in office how dare us for being surprised by their actions!!! My outrage is at myself for being duped again! If our political tyrants don't believe in the Constitution then it plain doesn't exist just like our long gone Rights! Does it reeeealy matter what extra TAX they IMPOSE on us, to relieve us of the rest of OUR property?? LIFE is choices and WE chose these Crooked and Corrupt CLOWNS, so lets us STOP attacking each others' Rights and drink and smoke our OVER-taxed vices as our Titanic sails slowly towards OUR chosen destiny!!

Posted by linda florida on 28 Feb 09 07:20 PM EST
I agree if you are going to tax cigarettes then also each bottle of beer and add 61 cents tax to each 12 oz of all alcohol. Have they thought what they are doing to the tobacco growers? Thought about the people who work in the tobacco industry etc. More without work. I just wish this administration would slow down and THINK before they CHANGE so much and later we are all sorry. Also maybe all the "junk foods" should have a 61 cent tax on them....let's just go ahead and tax everyone into instant poverity.

Posted by slwinslow on 03 Mar 09 11:19 PM EST
I make under 250K a year-a group that isn't supposed to endure new taxes. This tax will affect me greatly. I agree with Mark K.(see above) I don't like paying taxes so that those who don't work can live better than I do. I paid for my children and didn't have more than I could afford. I didn't use them as a way of making a living. Let's start taxing all sorts of groups: obese (junk food,candy,soda,energy drinks, fast food), IQ challenged (if you can't spell or read, you don't need to reproduce), alcohol drinkers,etc. I will quit smoking, but I don't enjoy being forced too. Let's impose greater penalties on those who get busted for DUIs & drug related offenses. We have a larger problem with illegal drugs than we do with smokers.

Posted by Howard Beale on 06 Mar 09 02:51 PM EST
Just overnight, the price at my local convenience store in GA jumped $.85/pack due to taxes. Upon further research, I read of a bill proposal of a $1 hike. Federal legislation appears to be bringing yet another increase. As a <$250K/yr group member and a pack-a-day smoker, a $308 (so far) annual increase in liability is a MAJOR tax increse, imao. (the 'a' is for angry!)

Posted by GoingGrey on 08 Mar 09 05:35 PM EDT
I've not been able to afford to buy pack cigarettes for over a year, so I've been rolling my own. Now that the price is going up over $24 a pound just in fed taxes, I won't be able to afford to buy loose tobacco anymore... so I guess I'm going to really "get natural" and just grow my own tobacco. Found seeds for $2.20 at http://www.seedman.com/Tobacco.htm - sure, it'll be more work, but there will be no fillers, no chemicals, and I'll save a ton :) BTW, I don't drink alcohol, I don't drink coffee, I don't eat candy, I don't go out to movies or restaurants, smoking is my only enjoyment, my only "splurge" at about 5 to 7 cigarettes a day I barely make $12,000 a year... but I must admit by going natural and growing my own, I sure am glad that I will no longer be contributing taxes to our federal government in this form anymore.

Posted by RidingHood on 09 Mar 09 07:38 PM EDT
Bought my 1st carton of cigs after this tax took effect. And again, I'm outraged. Why is the smoker the pariah of our society? We aren't allowed to smoke anywhere anymore except our homes and cars (and that will soon be gone I'm sure), now we are expected to fund government programs that have no direct correlation. As many of the other comments have stated...what about alcohol? I've smoked for 30 years and have yet to spend one dime on smoking related medical bills. But I have spent thousands trying to recover from growing up with an alcoholic parent! Not including what I've spent helping my kids recover. What is driving this prejudice against smokers? This is the question we should be asking. WHY is government trying to control our use of tobacco? I'd be willing to bet that the answer has nothing to do with the "common" good. What money is behind it? Who will profit?

Posted by NO_Coughing on 11 Mar 09 03:49 PM EDT
Now we need to raise the tax on Wine, Liquor and Beer to a rate which will discourage low-income people from spending money on the choice to drink. I feel a $1.62 tax increase for a six-pack of beer, $3.86 per liter of Wine, and $5.43 per fifth of liquor will not only reduce the number of child/spousal abuse cases each year, but also reduce drunk driving fatalities and raise plenty of tax revenue for Pres. Obama to offer universal health care for all. If we fall short on funding, just kick the tax up again, everyone should pay the "sin tax" in some way. I don't smoke or drink so as long as they don't tax prostitutes, I'm ok with it.

Posted by rueben roberto on 12 Mar 09 05:49 PM EDT
I see little to no evidence that smoking kills people! I do not recall ever seeing/hearing death certificates says cause of death was smoking..I do feel this tax is punitive to those that choose to use a legal substance. I have seen the results of dui causing death. Please someone show me an article stating death caused by driver smoking. Please get the senate and congress along with the president out of our lives and let us live as we choose as long as it is legal.

Posted by Steven on 18 Mar 09 07:16 PM EDT
Read the studies. They say the opposite. Cause heart desease,cancer, asthma? All lies!! One group trying to rule another. Lot of dead non smokers too. Prevents AHD,Parkenson. I haven't needed a doctor in 30+ years. They are the killers. Tax pushed by patch makers millons$$ lobby. I angry !

Posted by PEB on 19 Mar 09 10:56 AM EDT
I want to know what can be done to stop this tax increase? Smokers as well as non-smokers should be concerned about these taxes. If smokers quit smoking, you non smokers will have to foot the bill.

Posted by papabob on 19 Mar 09 06:42 PM EDT
If it really goes to schip,I as a smoker have no objections,nor do I see much reasoning behind objections.

Posted by Ground Controll on 02 Apr 09 09:24 AM EDT
Thanks Obama! My lower-middle income just got smaller by raising the RYO tobacco tax by 2000%. That's real fair! When you gonna raise alcohol taxes like that? Not gonna happen... too many boozer congressmen and other gov't officials enjoying their 2 martini lunches! Time for a N.C. tobacco party to make the Boston tea party look like a square dance!

Posted by Oldgoat on 02 Apr 09 01:24 PM EDT
I've been smoking for 45 years and not had a smoking related doctor visit, however, I have had alcohol related visits...why NOT raise taxes on alcohol, like ground control, too many boozer congressmen and women...what happens if we all quit? who pays the taxes then?

Posted by me on 04 Apr 09 01:50 AM EDT
I just cmae from the local smoke shop and am in shock. RYO is $33 for 6 oz bag of tobacco. It was $11 last week. How does that equal .61 cents a pack. I don't get it. But I do agree with almost every comment on here. Yes, cigarettes are bad for you, they cause cancer. Second hand smoke does the same, alcohol kills people every day. Then there are the FAS children, some with physical birth defect, some mental. The cost for services for these children is unbelieveable. What about obesity. When will they tax cheeseburgers and fries? How about drug addicts and their addiction. Guess we have to start somewhere. Smokers are an easy target. Hiking taxes on alcohol to this level may be next but unlikely because its socially acceptable. Alcohol is served at so many social events, especially for the rich and famous. But then they can afford it. Guess I will have to quit smoking. But then there are worse things...like trying to convince my husband he will have to quit. Ha.

Posted by Mike on 04 Apr 09 01:14 PM EDT
Nobody has mentioned how this tax will deprive Native Americans of the original use of tobacco: as a sacred plant used in religious ceremonies. At $23 per pound, most Native Americans will no longer be able to afford the loose tobacco they prefer to use in the ceremonies that they have observed long before the white man came to America and decided to use it for pleasure. Now that health officials have figured out that tobacco abuse leads to cancer, the government is engaged in yet another "prohibition" campaign, this time by taxing its use out of existence. Meanwhile, the original "users" who as a group are among the poorest in America, and whose traditional teachings encourage the avoidance of all drugs and alcohol will feel the full brunt of the governments power upon their religious practices. The irony is as rich as the smell of the plant that Native Americans offer to the Creator, in thanks for all that the good earth provides us. If you agree that the Obama Administration and Congress should amend their tax hike to exempt its use for traditional Native American use, then call the White House and your congressman !

Posted by Solstice on 13 Apr 09 05:10 PM EDT
I don't really pay attention to the news or the idiocy that has become our government, until today. 3 months ago I was LAID OFF when California went Bankrupt; since then, I have had to switch to RYO smokes simply b/c I can no longer afford "real" cigarettes. I went in today to get another bag of tobacco, only to find that the $10 bag has gone up to $40 - yes, that's FOURTY Dollars!! THIS IS ABSURD!!! WHAT THE H*LL HAS HAPPENED TO THE RIGHT TO LIBERTY!? Smoking is not only my choice, it is my RIGHT. Our government seems to have forgotten that THIS COUNTRY WOULD NOT EXIST WITHOUT TOBACCO. IT IS WHERE WE GOT THE MONEY TO START IT IN THE FIRST PLACE. I am SICK and TIRED of our government targeting smokers. Take out the d*mn alcoholics, the ones that get drunk, drive & kill people. Speaking of killing people - have they taken into account what's going to happen when you have thousands - over the next couple months - going through FORCED nicotine withdrawl?

Posted by LISA on 13 May 09 10:44 PM EDT
THIS TAX IS FOR A GOOD CAUSE, BUT MAKES NO scents.A $6.00 DOLLAR BAG OF TOBACO IS NOW $20.00, A $12.99 BAG OF TOBACO IS NOW $42.00. A PACK OF CIG'S WHENT UP TO $5.45 WAS $4.95. something seems wrong, wouldnt you say......

SUBMIT A COMMENT:

Note: Comments are now held for moderator approval. More info

Name:

Comment:
(limit 250
words)

Enter this word
(help):
Change

GUIDELINES: 
Please keep comments on-topic, courteous, clean, non-commercial, and within the word limit.
Read the complete guidelines