The actual SCHIP document on cigar & pipe tobacco

[Jonesee]

Blue, I don't doubt you. You work in the industry, but can you explain how your numbers come out of the bill language and other sources that show it much higher?

I am really not questioning you!!! Really really not!! I am just trying to understand what I have misunderstood. Maybe I need some more wine tonight to think it over again...

[BlueHavanaII]

Originally Posted by Jonesee

Blue, I don't doubt you. You work in the industry, but can you explain how your numbers come out of the bill language and other sources that show it much higher?

I am really not questioning you!!! Really really not!! I am just trying to understand what I have misunderstood. Maybe I need some more wine tonight to think it over again...

You can't just look at the S-CHIP bill to understand the effect. You have to make the changes at the source! Here's the IRS Code before the changes:

On cigars weighing more than 3 pounds per thousand, a tax equal to 20.719 percent (18.063 percent on cigars removed during 2000 or 2001) of the price for which sold but not more than $48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001).

Here are the relevant changes:

(2) by striking ``20.719 percent (18.063 percent on cigars removed during 2000 or 2001)'' in paragraph (2) and inserting ``52.75 percent'', and
(3) by striking ``$48.75 per thousand ($42.50 per thousand
on cigars removed during 2000 or 2001)'' in paragraph (2) and
inserting ``40.26 cents per cigar''.

Here's the code after the change:

On cigars weighing more than 3 pounds per thousand, a tax equal to 52.75 percent of the price for which sold but not more than 40.26 cents per cigar

[Jonesee]

Thanks.

Now I know why I am not a tax attorney.

[Chuckie]

Man.... these guys must have worked at Microsoft. They never remove any legacy code and the language in this "tells" you they are removing it. Take all the "striking" and "removing" out and just say what he $%^& you mean.

[MrMusicMan1]

Originally Posted by Chuckie

Man.... these guys must have worked at Microsoft. They never remove any legacy code and the language in this "tells" you they are removing it. Take all the "striking" and "removing" out and just say what he $%^& you mean.

LOL

[sboyajian]

Originally Posted by slyder

Why dont they tax things that everyone uses! Make some reall money! Lets put $1.60 tax on every can of soda thats purchased! Or maybe every bottle of water. ill type more in a few....when i get to work....ill have 8 uniterupted hours to write there!

ironically.. a 2 cent tax on every can or bottled carbonated beverage would likely generate more annual revenue than the new SCHIP bill and would be supported by a much larger population, including those of whom the bill actually supports.

[Cigar Man Andy]

It's driving me