Got this from MrBundles today.
Dear friends,
This morning I was informed about a disturbing memo from the CAA (Cigar Association of America) based in Washington, DC. They are on the forefront of the fight to help us keep our rights as cigar smoking Americans. Our government is out of control in regards to this latest proposal! They are tying cigars to cigarettes once again in a proposal to raise the federal tobacco tax to an unbelievably high amount. If this proposal passes, it will put many cigar retailers out of business and dramatically increase your cost of cigars!
Your immediate action on this issue is extremely important! The Senate Finance Committee will be wrapping this up in the next two days and send it before the full Senate within the week. Please read the following memo that we received this morning and call your senator as soon as possible!
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Urgent Request
The U.S. Senate will shortly vote on a proposal to expand the state children’s health insurance program by $35 billion. Funding is to be provided solely through higher tobacco taxes. The tax increases on cigars are particularly punitive, as all large cigars would be subject to a tax of 53.13% of the manufacturer’s selling price. This is an increase of 156.4% over the current rate! And, while the current tax on cigars is capped so no cigar pays more than $.05 in federal taxes, the proposed legislation would increase the cap by 20,413% (not a typo) to $10 per cigar! The combination of these two factors will result in a dramatic increase in cigar prices in the U.S. and many cigar companies are likely to go out of business.
We urge you to phone the offices of your own U.S. Senators, give them your name and address and ask that they vote to oppose the punitively high cigar tax increases in the state children’s health insurance legislation. Please call only your own U.S. Senators because Senators respond to the concerns of their constituents, not to those who live in other states.
The current Senate Finance Committee proposal to fund expansion of the State Children’s Health Insurance Program (SCHIP) solely through higher tobacco taxes will have a draconian impact on the cigar industry. Indeed, it is the biggest threat to the cigar industry since President Clinton’s proposal in the early 1990s to fund universal health care on the back of the tobacco industry.
The Senate Finance Committee is expected to mark up the SCHIP legislation tonight. No changes are expected in the revenue provisions. The measure is likely to be considered by the full Senate, possibly next week.
Sen. John Warner: 202 224 2023
Sen. James Webb: 202 224 4024
You can find your local phone number for your state senator in your phone book or go to
http://yellowpages.com
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As you can see this issue is very serious and would have dramatic implications in all of our lives. We would all very much appreciate if you would call your US Senator ASAP!!
Thank you for your support!
Mike “uncle mikey” Banks
Herf House Cigars