WASHINGTON -- As Congress returns to work this week in Washington, tobacco proponents are digging in their heels to battle a proposed $6.10-per-carton increase in the federal excise tax (FET) on cigarettes. Tobacco company representatives and advocates are urging retailers to call or email their legislators and voice their opinions of the bill.
"It's not fair for adult smokers to bear the cost of programs that benefit everyone," states an Altria Client Services and Philip Morris USA-based website set up to spread information about the plan and to make it easier to contact members of Congress. "[image-nocss] In tough economic times like these, it just doesn't make sense to raise taxes."
The bill would expand the State Children's Health Insurance Program (SCHIP) by $35 billion over the next five years. This expansion in the program would be paid for by a 61-cent-per-pack federal cigarette tax increase and large increases in the federal tax rates on other tobacco products.
President George W. Bush rejected the tobacco tax increases in January 2008 to avoid expanding the insurance coverage to citizens with higher income levels, but as the bill raises its head again, it is seen as a particular threat because a new presidential administration is more likely to push it through to become law. To hear more about the state of the SCHIP legislation,click here to watch this week's edition of CSPTV.
"The impact on a retailer's business could provide further incentive for smuggling and other contraband activities, such as counterfeit and illegal imports," states the Philip Morris FET website. "To the extent that this activity follows from a federal excise tax increase, legitimate retailers stand to lose. Ultimately an FET increase could lead to lost jobs in the retail sector." To read a list of talking points on the issues involved in the SCHIP legislation—and how to fight it—click the Download Now button below.
The free website—www.stoptheFETincrease.com—provides a simple, fill-in-the-blank form to allow retailers to voice their displeasure with the bill. Retailers can also call a hotline at (866) 527-4494 to reach out to their legislators.
Meanwhile, during the month of August, the National Association of Tobacco Outlets (NATO) has coordinated a multi-prong strategy to oppose the tobacco tax increase. In one initiative, NATO legislative staff has been contacting association members to meet with targeted U.S. Representatives that voted to sustain President Bush's veto of the SCHIP bill. The goal is to encourage them to continue their opposition to the cigarette and tobacco tax increases under the SCHIP legislation.
Another part of NATO's nationwide effort to oppose a third SCHIP bill involved sending a commentary letter-to-the-editor to 225 major newspapers in the home state districts of the 160 U.S. Representatives that voted to uphold the president's veto of the SCHIP bill. With Congress returning from recess today, the goal was to have the U.S. Representatives read about the severe budget shortfall that the SCHIP program would encounter if the tobacco taxes are increased and to educate the public about the need for Congress to seek out alternative funding sources for the expansion of this program.
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