Industry Lobbyists' Consensus Sees Compromise Holding For Next Round of SCHIP Deliberations

November 21, 2008 - As rumors continue circulating about SCHIP in 2009, CAA's and IPCPR's lobbyists, along with several industry consultants, met to share new information and prognostications regarding legislation to renew and expand the State Children's Health Insurance Program (SCHIP).

While tempered with a bit of caution, all parties participating on the conference call remain confident the compromise that was reached and agreed to by Congressional leaders will be incorporated into yet-to-be reintroduced SCHIP legislation.

General consensus among industry lobbyists and consultants holds that despite campaign rhetoric, the reality of governing, particularly in the economic circumstances faced by all segments of the economy, will prove difficult for the new Administration's legislative priorities to be quickly approved. 

With those caveats in mind, there were three consensus views that emerged:
While there are credible scenarios that would delay SCHIP, there was much agreement that SCHIP will likely be an early priority of the new administration.
House leadership has signaled it will likely be among the top three priorities of the Congress/Administration. SCHIP has passed the Congress twice in 2007, so passing the "old" bill with the "compromise" language would be an easy step.
The make-up of the new House and Senate is even more favorable than before and the new President will eagerly sign the bill. Under this scenario, SCHIP would provide a high profile legislative victory and a down payment on the health care agenda.

The International Premium Cigar & Pipe Retailers Association (IPCPR) is a not-for-profit trade association organized as the advocate for the independent retail tobacconist and recognized as the "Voice of Authority and Reason" on premium tobacco related issues. 

Now that there isn’t a Republican in the white house to kill it, Congressional Democrats claim to be making SCHIP a Top Priority. CQ Politcs reported on Friday, November 6th that Democrats in the US Congress plant to move quickly in the New Year to pass a major expansion of the State Children’s Health Insurance Program (SCHIP). House Speaker Nancy Pelosi was interviewed on National Public Radio the day after the election and stated that the expansion of SCHIP “will probably be one of the first bills we would put on President Obama’s desk.”

For those who recall recent events, the US Senate and House both passed a $35 billion dollar SCHIP expansion bill TWICE but it was vetoed both times by President Bush and the legislative branch was unable to swing enough votes to over-ride the veto both times. 

What Does This Mean To You?

Why is this important to pipe and cigar smokers you may ask? Well, because this bill would be funded almost exclusively on the backs (and out of the pocketbooks) of smokers of ALL types.

But that isn’t all, the CQ Politics article points out that the tax increase shown above won’t even cover the cost of the expansion of this program. In fact, the congressional Budget Office issued a report in August of this year which found that a five year expansion of the SCHIP program as envisioned by the House and the Senate will cost close to $45 billion, not the $35 billion they are hoping to raise.

The current SCHIP program is set to expire on March 30, 2009 so they are going to move fast on this. We responsible smokers need to speak out loud and clear that this funding proposal is not only unfair, it is UNSOUND!. Not only will it not fund what they want it to do, thereby continuing to grow our budget deficit even further but it also unfairly targets a small percentage (less than 10%) of the US population to pay for something that they claim is a universal need.

Not only will this hit YOU directly in the wallet in these trying times, but it will likely cause for the closure of many tobacconists around the country that are barely hanging on as it is. This, in turn, will dramatically affect the volume of cigars purchased yearly, decreasing the amount of money raised by this tax increase as demand drops; widening the difference between the funds committed to fund SCHIP and the funds available to pay for it.

And if we look out beyond our own selfish needs, IPCPR and many other organizations predict dire results for the economies of the Dominican Republic, Nicaragua and Honduras as a result of this flawed legislation.

What Can I Do To Help?

Well, we all need to band together and show our elected officials the errors of their thinking in this flawed bill.

Let your US Senator and representative in the House know how the negative impact of this legislation will affect you, affect small businesses in your community and how you feel it will affect our neighbors in cigar producing countries. Make sure that you reference SCHIP in your conversation and how you are rallying your neighbors and fellow business owners to defeat unfair taxation. You should also remind them that as a voting block in their state/district, you WILL remember those that fall prey to the “but it’s for the children” sound-bite mentality behind those supporting this bill.

Helpful Links:

A listing of all the current Senators

How to find your local Representative

Your IMMEDIATE action is the only thing that will keep this proposal from becoming a LAW! Please respond today!

As always, we encourage your responses in the comments section below.