Bob Dole: “this bill seeks revenues for the very laudable State Children's Health Insurance Program by unfairly taxing tobacco…”

“this bill seeks revenues for the very laudable State Children's Health Insurance Program by unfairly taxing tobacco products. I urge my colleagues to acknowledge the reality that this tax increase is an irresponsible and fiscally unsound policy. Tobacco sales have been declining 2 to 3 percent per year and are expected to be slashed by another 6 percent if the Federal excise tax is increased. But in order for this tax increase trick to work, more than 22 million additional Americans will need to take up smoking to keep the SCHIP program running over the next decade. In addition, according to the Tax Foundation, no other Federal tax hurts the poor more than the cigarette tax. Of the 20 percent of the adult population who smoke, around half are in families earning less than 200 percent of the Federal poverty level. In other words, many of the families SCHIP is meant to help will be disproportionately hit by the Senate's proposed tax hike. I oppose this tax hike plan not only because it is fiscally unsound but also because it unfairly hurts the economy of my home State of North Carolina. A massive and highly regressive tax increase on an already unstable product is an irresponsible way to fund such an important program.”