SCHIP: Does anyone know if CIGARS are taxed also?

[Jaundice James]

Does anyone know if CIGARS are also taxed for SCHIP? I know it was part of the original plan that Bush vetoed. Is it part of the current plan? Does anyone have a link that includes info on the cigar tax? Thanks. -JJ



.

[villager]

1. oh that's right -- the stogie tax was entirely disproportionate

...to what the cigarette addicts were paying...

[Jaundice James]

2. Sort of. I'm working on that. n/t

[rurallib]

3. how about pipes and tobacco and those who roll their own?

[Venceremos]

5. Yes - roll your own got clobbered

RYO tobacco will be taxed at the rate of $24.78 per pound starting on April 1, 2009. That is not a typo. It's a 2100+% increase, the largest tax increase on any product in history.

Pipe tobacco increase is $2.83 per pound.

The actual bill is at http://www.whitehouse.gov/assets/documents/schip1.pdf

Go to page 267, section "f" for pipe tobacco, section "g" for RYO.

And in case you need it, here's a good source for heirloom tobacco seeds and plants that you can grow in your backyard or a container:
http://www.newhopeseed.com/tobacco/varieties.htm


And hello in West Liberty - I'm about 50 miles across the river in Illinois :hi:

[rurallib]

6. hello back

i have a daughter around Peoria, so we have some skin in Illinois
:hi:

[Venceremos]

4. Yes

cigars are taxed as follows:
Large Cigars
20.719% of manufacturer’s price; cap of 4.875¢/cigar
52.4% of manufacturer’s price; cap of $.40/cigar

Little Cigars
4¢ per pack
Phase in of $1.00/pack: $.25/pack on 1/1/2009: $.50/pack on 1/1/2011: $.75/pack on 1/1/2013; and $1.00/pack on 1/1/2015.

The actual bill is at http://www.whitehouse.gov/assets/documents/schip1.pdf. The tobacco tax rates start on page 265.