Stogie Commentary: Go SCHIP Yourself!

A reader recently sent us a response he got from his senator, Barbara A. Mikulski of Maryland. He had written to express his concern and disappointment over the proposed approximate 20,000 percent tax increase on cigars.

Here is part of the response he received from Senator Mikulski:

“I understand your concerns with the tax provisions in the recent version of the children’s health reauthorization legislation, which included a tax increase on large cigars to up to $10 per cigar. I agree that this would have placed an unfair burden on you or your business.

After reading your letter, I took action. I worked with my colleagues, in a bipartisan manner, and fought to drop the ceiling on large cigars from $10 to $3 per cigar. Though still an increase, I wanted you to know that I shared your concerns and acted accordingly.

You should know that I am extremely concerned for the over 12 million children without health insurance. I firmly believe that all children should have access to high quality, affordable health care and health insurance coverage.”

There are so many things wrong with this response, it is hard to know where to begin. First, Senator Mikulski (or, rather, her staff member who responds to constituent letters) includes a giant non sequitur by noting that she wants 12 million children to have health insurance through SCHIP.

Why do the massive costs of SCHIP have to be paid for by taxing an already heavily discriminated group like smokers? Or why it is a good idea to make health insurance funding dependent on people smoking? She never says. Nor does the Senator address the devastating effects that such a tax would have on the families of cigar factory workers in Central America.

But the biggest problem I have with this condescending letter is that it claims that she has addressed the “issue” by dropping the cap on the taxes from $10 to $3 – meaning that the tax increase will now be just 5,900 percent.

What she doesn’t mention is that her proposed tax rate lowers taxes for only the most expensive cigars, leaving taxes exactly the same for all cigars that usually retail for under approximately $8 – the vast majority of all cigars sold.

In short, this reply is the same political double-speak you’d expect from DC politicos: unresponsive and lacking in substance. An apt comparison would be telling someone that pleading not to be shot will result in only two bullets instead of six. Oh, thanks!

Just another reason why the cigar industry needs to get its act together and start doing a better job of fighting these unjust cigar taxes.

-Patrick S

photo credit: Stogie Guys