Tobacco to be taxed heavily in U.S

Calcutta News.Net
Wednesday 17th October, 2007

Cigar store owners in the U.S are fuming over a proposed federal tobacco tax increase.

Cigar smokers would be hit the hardest over a controversial proposal to expand the State Children's Health Insurance Program to provide health coverage for more uninsured youngsters. A vote is scheduled next week.

President Bush has threatened to veto the bill if it gets through.

The bill would boost SCHIP spending by US$35 billion, and would fund the proposal by hefty tax increases on all forms of tobacco, including cigarettes, cigars and pipe tobacco.

Cigars would face the largest-percentage increase, with the maximum tax per cigar being boosted to US$3 from 5 cents; a nearly 6,000 percent increase.

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