Tobacco tax article found in Cigar Report Daily

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>> According to the New York Times, Congressional Democrats do not intend to bring up the SCHIP legislation -- that would raise the Federal tax rate on cigars and the tax cap from 4.875 cents to $3 -- again this year. They have concluded that President George W. Bush will veto the bill again and that the House Republicans will again have enough votes to sustain that veto. In addition, according to the Congressional Budget office, the cost of the bill has increased, however, the revenues from tobacco taxes remain about the same. Because of the projected cost increases, Congress would need to figure out how to fund the extra cost. Opposition to the current SCHIP bill remains from Hispanic, African- and Asian-American members of Congress due to a lack of coverage for some immigrants. Finally, time is a factor as Congress will be adjourning in the next three or four weeks, potentially leaving insufficient time for the legislative process to play out. With projections showing the Democrats gaining seats in both the House and Senate in November, it is possible that the Democrats are simply playing for time until the next Congress convenes.