Sin Tax on the Rise: Cigarettes to Shoulder S-CHIP
Yesterday, President Obama signed into law legislation reauthorizing and expanding the State Children’s Health Insurance Program or S-CHIP, which was set to expire in March 2009.
Former President George W. Bush had previously vetoed two similar bills.
The measure increases federal tax on cigarettes by almost 62 cents a pack, to $1.01 a pack. This increase is expected to raise the $32.8 billion needed to pay for S-CHIP over the next four years.