Congress Considers Huge Tax on Cigars

The federal government has proposed raising taxes on premium cigars by as much as 20,000 percent! This could mean a single cigar could be taxed up to $10. I realize a good cigar when I smoke one, but I don't know of a cigar that deserves a ridiculous tax of $10 on it. Under a proposed bill, the Democrat controlled Congress has sought an extra $35-billion to $50-billion for the state children's health insurance program. In other words, the program would distribute payments to the states to help buy coverage for children not poor enough for Medicaid. This increase on tobacco sales would pay for children's health insurance. The legislation, which is mainly targeting cigarettes, has brought cigars into the mix, and would raise the tax on "large cigars" to 53% and the bill would set the maximum tax at $10.