Updated 01/11/2009 07:00 PM
Tobacco dealers worry about higher taxes
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CHARLOTTE – The State Children’s Health Insurance Program, or S-CHIP, is a state-governed offering that insures qualified uninsured children.
The program is funded by state and federal money, but there isn’t enough cash to afford it.
And Washington lawmakers are looking to tobacco buyers and sellers to give it the boost it needs by proposing a tax hike on tobacco products.
Two previous S-CHIP funding bills called for a 53 percent tax on cigars and a minimum price cap.
Those bills were passed in the House and Senate, but were vetoed by the president.
Cigar shop owner Lindalyn Kakadelis said once President-Elect Obama is sworn in, a new S-CHIP bill should pass, since he previously voted in favor of it.
“It doesn’t look good for small businesses,” she said. “Any time there is a tax, it is pushed onto the customer.”
And some smokers said higher taxes would cause tobacco users to stop or slow their use, reducing the amount of revenue for S-CHIP and for business owners like Kakadelis.