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.

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