News from International Premium Cigar & Pipe Retailers Association (IPCPR)
International Premium Cigar & Pipe Retailers Association (IPCPR)
Federal Legislative Update
Congress Decides on Framework For Cigar Tax Bill
Senate Version of SCHIP will move forward
In an attempt to get the SCHIP legislation passed before the current program expires September 30, the House Democratic leadership has agreed to accept the Senate version of the legislation for the framework of a compromise bill. The Senate version, H.R. 976, currently proposes to increase the OTP excise tax rate on cigars to 53.12 percent with a $3 cap per individual cigar.
Determined, strategic lobbying continues of key Senate Finance committee members seeking amendments to the proposed legislation before it advances through the process. Of the amendments sought, we are working to have the floor stocks tax provision on cigars removed from the legislation. Additionally, we continue working for a much lower tax rate and cigar tax cap, one that is both reasonable and fiscally-acceptable for all of our retail members.
In addition to our lobbying efforts from our Association position, the Latin American-cigar producing countries also continue to lobby their counterparts in Washington, D.C., at this draconian tax increase will too have catastrophic consequences, specifically on the 3.5 million people, workers and their families, who directly rely on the handmade cigar industry.
The President remains adamant he will veto the Senate bill and it appears that there are not enough votes in the House to over-ride that veto. Following the potential veto, the political game begins as the Democrats face the choice of either keeping the issue alive for political purposes or entering into negotiations with the White House.
Our lobbyists and others heavily-involved in this tax fight view a presidential veto as the most likely end result. We are leaving no stone unturned in protecting our members against this egregious tax increase and will continue lobbying Congress for these needed amendments.
We urge you to continue contacting the President and members of Congress via IPCPR's Legislative Action Center to oppose this federal cigar tax increase.
Thank you for your continued support.
Chris McCalla
Legislative Director