This is a discussion on Got some letters from my Texas Senators within the Tobacco Legislation forums, part of the The Cigar Lounges at Puff category; Just got these back.
Thank you for contacting me about recent efforts to increase the federal excise tax on tobacco. ...
Thank you for contacting me about recent efforts to increase the federal excise tax on tobacco. I appreciate having the benefit of your comments on this important matter.
As you may know, earlier this year, a budget resolution was approved that allowed much of the tax relief Congress passed in 2001 and 2003 to expire causing the largest tax increase in our nation's history. Now, various proposals that would increase the federal tax on tobacco products have been introduced. I firmly believe Congress should not rely on tax increases to fund new government initiatives. Instead, Congress should focus on eliminating wasteful government spending. In fact, the Government Accountability Office, an independent, investigative arm of Congress, has identified billions of dollars in federal expenditures that are vulnerable to waste, fraud, and abuse.
In an effort to combat wasteful government spending I recently introduced the United States Authorization and Sunset Commission Act (S.1731). This bill establishes a bipartisan commission that would improve Congressional oversight and facilitate the elimination of obsolete and duplicative government programs. This legislation is modeled after the Sunset Act, which the State of Texas instituted in 1977. The Sunset Act has led to the elimination of over 50 agencies and saved state taxpayers more than $700 million.
I appreciate having the opportunity to represent the interests of Texans in the United States Senate, and you may be certain that I will keep the concerns of hardworking American taxpayers foremost in mind. Thank you for taking the time to contact me.
Sincerely,
JOHN CORNYN
United States Senator
Quote:
Thank you for contacting me regarding tobacco use. I welcome your thoughts and comments on this issue.
The federal tax rate on cigarettes remained unchanged at eight cents per pack from 1951 to 1982. Since 1982, the rate has been increased several times, and the current federal tax on cigarettes is 39 cents per pack.
S. Con. Res. 21, the Senate Budget Resolution, authorizes an increase in the federal cigarette tax from 39 cents to $1 to raise money for the State Children's Health Insurance Program. The increased tax would raise an estimated $7.6 billion per year for this important program. However, I voted against the Senate Budget Resolution, and the Conference Report, because it increases spending to nearly $15 trillion over five years and includes a historic $732 billion tax increase. The Budget Resolution fails to extend vital tax cuts that are driving our growing economy and instead creates the steepest tax hike in history.
S. 1799 was introduced by Senator Blanche Lincoln (D-AR) on July 17, 2007. The bill seeks to apply rate parity to the excise tax on small cigars and small cigarettes by raising the tax from $1.828 cents per thousand to $19.50 per thousand units. Currently, there is a maximum federal tax of 4 cents per small cigar and a maximum federal tax of 5 cents per large cigar (or 20.719% of the sales price, not to exceed $48.75 per 1,000 units). This legislation has been referred to the Senate Finance Committee, on which I do not serve. Should this legislation come before the full Senate, you may be certain I will keep your views in mind.
I appreciate hearing from you and hope you will not hesitate to keep in touch on any issue of concern to you.
09-11-2007, 05:22 PM
Got some letters from my Texas Senators
Got some letters from my Texas Senators
