Cigarette Tax Triples In The US
Posted on: Wednesday, 1 April 2009, 15:25 CDT
The cost of cigarettes in the United States was raised as of Wednesday because of a federal tax hike on tobacco to fund new health care coverage to uninsured children.
The tax on a pack of cigarettes more than tripled to over a dollar, from 39 cents, the Treasury Department said. A 10-pack carton of cigarettes now has a tax of $10.06, which was originally only $3.90.
Also, taxes increased on roll-your-own tobacco, rising from $1.09 per pound to $24.78, and small cigars went from $1.82 per 1,000 to $50.33.
The tobacco tax increase is part of the Children's Health Insurance Program Reauthorization Act signed into law by President Obama on February 4th.
Obama pinned the law as a "down payment" on his promise to guarantee health benefits to all Americans.
Former President George W. Bush vetoed similar legislations twice.
The law expands health care to an additional four million children over the next four and a half years while continuing coverage for about seven million children.
The $32.8 billion boost is mostly funded by the Tobacco tax boost, which supporters hope will discourage children from taking up the addictive habit.
The law provides for new permit and enforcement provisions on tobacco products and processed tobacco in a broad tightening of government regulation of the tobacco industry.
Source: redOrbit Staff & Wire Reports
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