Quote:
Originally Posted by Pat1075
It'll be the floor tax that'll put the hurt on a lot of businesses. I.E. since the tax was only X when they bought the product they have to pay Y because that tax didn't exist yet on everything they already own. (seems extortionist to me but what do I know)
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I thought the floor tax got pulled from the final bill?
EDIT: We were both right -no floor tax on large cigars but I guess they could still get the floor tax on bulk tobacco and "small" cigars...
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New SCHIP Bill—Federal Cigar Tax to Be Capped at 40 Cents [up from 5 cents, that's my pie?]
Cigar Aficionado ^| 2-8-09 | David Savona
Posted on Sunday, February 08, 2009 4:02:05 PM by SJackson
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.