The following is a press release from the National Association of Tobacco Outlets advising all responsible consumers of tobacco products to make their voices heard on this subject. It is imperative that we all band together and speak out against this unfair taxation of a small segment (less than 10%) of society for a program that has universal concerns. Why put this on our back?

A Call to ACTION on SCHIP Tax Increases!

If Congress passes a bill early in 2009 to expand the State Children’s Health Insurance Program (SCHIP) by significantly increasing the federal cigarette and tobacco taxes, the fallout from this expansion of government subsidized health care will likely include major cigarette and tobacco sales reductions, large increases in the number of store robberies because the value of tobacco products would be so high, a floor stocks tax on cigarette and tobacco inventory adding up to an estimated $5,000 per store, employee layoffs and even store closings.

The SCHIP program is a top priority for Democrats and may result in the single largest tax increase on one industry’s products in the history of the country. With President-Elect Obama a supporter of SCHIP, the possibility of a tobacco tax increase to fund the expansion looms large even though Obama made campaign promises not to increase taxes on any one who earns less than $250,000. The 2007 SCHIP bills proposed the following increases in the federal tobacco excise tax rates:

Tobacco Product	Current Tax Rates	SCHIP Bill Tax Rates	Percentage Tax Increase
Cigarettes	39¢ per pack	$1.00 per pack	156.4%
Large Cigars	20.719% of manufacturer’s price; cap of 4.875¢/cigar	53% of manufacturer’s price; cap of $3.00/cigar	6,000%
Little Cigars	4¢ per pack	$1.00 per pack	2,197%
Pipe Tobacco	$1.0969 per pound	$2.8126 per pound	156.4%
Chewing Tobacco	19.5¢ per pound	50¢ per pound	156.4%
Snuff	58.5¢ per pound	$1.50 per pound	156.4%
RYO Tobacco	$1.0969 per pound	$8.8889 per pound	710.36%

The Time to Act is NOW!!!

NATO’s legislative staff members are sending out to association members customer alert sheets to place on store counters and personalized letters addressed to each retailer and wholesaler’s particular U.S. Senators and Representatives. NATO members need to call their Congressional representatives, urge their employees and customers to do the same and fax the personalized letters to Washington, DC. All the names, phone and fax numbers of the particular Congressional representatives are being provided. NATO members need only dial the phone and fax the letters. Your voice and the voice of your customers need to be heard.

Turbulent Time for Tobacco Requires Grassroots Efforts

No one can say with 100% certainty how the SCHIP legislation will finally be resolved by Congress in 2009. What can be said is that the SCHIP bill is just the beginning of what will be a turbulent year for the tobacco industry. With some in Congress supporting federal cigarette and tobacco tax increases to expand SCHIP and more than 30 states with large budget deficits some of which will also propose higher tobacco taxes as well, NATO wants to remind its members that they must continue to contact their elected officials to be heard on tobacco issues. Maintaining that dialogue and urging customers to make phone calls continues to be an important part of opposing unfair tobacco legislation.

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. 

News from the IPCPR:

Legislation Proposed Excessive Tax on Cigars
October 18, 2007- Finally, this critical vote failed to pass the House of Representatives in a floor vote today. The final vote was 273-156, short of the necessary two-thirds majority (of present voting members) needed.
We wanted to take this opportunity to thank all of you for your perseverance, tenacity, vigilance, and persistence in contacting your U.S. congressmen and congresswomen, and your senators through
phone calls, emails, faxes, and personal visits to their district and Capital Hill offices. Without your support and direct action we simply would not have made the noise we did in Congress, gaining the attention of influential members that now understand our niche community-industry cannot absorb a massive tax increase and continue to exist.

This is only the first round in what will most likely be a continuing battle for the next several months. As SCHIP expansion and extension of the current program will be sought by congressional democrats. We have already begun communicating and working with congressional leaders and their states, taking the position that if a tax increase in cigars must exist, that a realistic, manageable increase must be a part of the overall proposal. 

A special thank you goes out to the manufacturers within our industry for their efforts throughout the United States and Latin America in mobilizing support against this tax increase. Through their coordinated efforts between the Latin American governments, and their counterparts in the United States, they illustrated and successfully conveyed the ramifications of this tax increase on the Latin American citizens and artisans who rely on the handmade cigar industry for a viable, living income. Key legislators now understand it is more than just a pleasure for consumers, but a way of life for those artisans who produced handmade cigars. Because of the handmade cigar industry, many of these citizens would not have reasonable access to medical and dental care, education, and other social services provided by manufacturers based in these small countries.

Thank you again for your efforts and direct action, for if we are to succeed, we must all hang together, or we will hang separately.

International Premium Cigar & Pipe Retailers Association (IPCPR)
Chris McCalla
Legislative Director  

Looking for bullet points or help to craft a message to your local senator/congressman to UPHOLD the SCHIPs veto.

Going to http://capwiz.com/rtda/issues/alert/?alertid=10386901 and inputting your zip code will not only give you a list of representatives near you, but it will also give you bullet points appropriate to how the legislator had previously voted.

The time to act is now so don't wait. We think you'll find this tool from the IPCPR will assist you in knocking this down. SCHIP supporters are gearing up with a multi-million dollar TV campaign to get the uninformed electorate to pressure legislators who voted against the bill to change their minds and override the veto because "it's for the children".

We know that YOU know you need to contact your representatives about upholding the veto on the expansion of SCHIPs program by putting the tax burden on our backs.

Perhaps you have friends who are having a hard time getting past the "it's for the children"... Send them links to our video playlists to hear the truth about this tax and what it is really about!

http://www.youtube.com/view_play_list?p=A52E341856944523

Share the link and this message far and wide!

ACTION ALERT!

Call and Urge Your U.S. Representative
To Sustain President Bush’s Veto
Of the SCHIP Bill!

On October 3^rd, President Bush Vetoed the SCHIP Bill
With Excessive Cigarette and Tobacco Tax Increases

The Democrat Leadership in the U.S. House has Scheduled
A Vote to Try and Override the Veto on October 18^th

You Need To Call Their U.S. Representative Now and Urge Them to
Sustain the President’s Veto of the SCHIP Bill!

__________________________________

Call Either of the Following Toll-Free Numbers to Be Directly Connected with Your U.S. Representative’s Office:

1-877-857-8074 or 1-866-527-4494

CALLS ARE NEEDED TO ENSURE THAT
THESE UNFAIR TAX INCREASES ARE
NOT ENACTED INTO LAW

From the International Premium Cigar & Pipe Retailers Association (IPCPR)

Federal Legislative Update

Compromise Bill Moves Forward for Vote
Cigar Floor Stocks Tax Provision Removed

September 25, 2007-

A compromise bill for the State Children Health Insurance Program (SCHIP) funding was finalized late in the evening on Monday, September 24 with mixed news for the premium cigar and pipe industry. The Floor Stocks Tax provision on cigars that was originally in the legislation has been stricken. THERE IS NO FLOOR STOCKS TAX IN THE LEGISLATION!

However, the tax rate was reduced by only a fraction, from 53.12% to 52.988%, and the tax cap of $3 per cigar remains.

The compromised bill now goes to both the House of Representatives and the Senate for an up-or-down vote (members of Congress must vote either yes or no and no further amendments or changes may be added or made at this time.

Once the bill is most likely approved by both chambers of Congress, the legislation goes to the White House where President Bush remains adamant that he will veto the legislation. Following a presidential veto, Congress will most likely approve an extension of the current SCHIP program that expires September 30, relying on existing government healthcare money to fund the extension-the yet-to-be proposed extension will not rely on any tax increases. This extension will give Congress more time to create a bill that the president may be willing to sign.

Many have been involved in this fight, and we will continue working to protect members of our Association, notably Rocky Patel, Jeff Borysiewicz, a retailer from Corona Cigar, in Florida, David Berkebile, your association former president Lito Gomez of La Flor Dominicana, Marvin Samel of Drew Estate, Robert Levin of Ashton/Holt Distributors, Eric Newman of J.C. Newman, Alejandro Cuenca of Hoya de Nicaragua, and Jorge Padron. Due to the incredible efforts of these people the unfair treatment of the cigar industry was clearly brought to Congress' attention. Full, deserved credit goes to this group.

Though the comprise bill is far from what we need to protect our industry we have laid the groundwork for what may come at a later date regarding SCHIP funding relying on increased cigar taxes. We now have the tools in place to work toward a reasonable compromise on a livable tax.

IPCPR's federal lobbyists, Patton Boggs and Public Strategies-Washington, two premier lobby groups on Capitol Hill, and the Cigar Association of America have also been instrumental in this fight. Additionally, the manufacturing countries' governments are fully engaged through their embassies and continue lobbying their Washington, D.C. counterparts on the ramifications of this draconian tax increase, working toward our shared goals.

Thank you to all of you, our members, and your customers for the countless phone calls, emails, and faxes sent to your Congressmen and Senators. Congress now understands that the premium cigar and pipe industry will not stand idly by as they may have their way with our livelihoods and our industry. When this bill is vetoed, we look forward to working closely with Congress on a new bill that provides necessary healthcare funding for children while not driving an entire industry into extinction.

We will continue to keep you posted as this situation continues its legislative process.

Chris McCalla

Legislative Director

Six states had tobacco-related questions on the Election Day ballot and only California and Missouri proved to be rays of hope. The remaining ones either increased taxes on Cigars/Pipes and cigarettes or curtailed smoking in various locations. A summary of the final results from yesterday’s elections are listed below:

Arizona:

Question 201 Passed: Prohibits smoking in most workplaces and increases the cigarette tax by 2 cents a pack. Allows smoking in tobacco stores, veterans and private clubs, designated hotel rooms and outdoor patios of restaurants and bars. Because of it's more restrictive nature, this question was opposed by retailers in Arizona.
Question 203 Passed: Increases the tax on large cigars by $.088/cigar. Raises the tax on smokeless and smoking tobacco by $.09/ounce, increases the tax on little cigars by $.178/pack and raises the cigarette tax (however, the ballot question stated the cigarette tax would increase 8/10th’s of a cent per pack when the amount intended was 80 cents per pack; a determination on the amount of the increase has not been made).
Question 206 Failed: This measure, supported by retailers, would have allowed smoking in more hospitality establishments than Question 201 but it did not pass.

California:

Proposition 86 Defeated: This question would have increased cigar and pipe tobacco taxes to approximately 135% while cigarette taxes would have gone up by $2.60/pack. We are extremely pleased to see this poorly written proposition die an ugly death 

Missouri:

Question 3 Defeated: This question would have increased cigar and pipe tobacco taxes by 20% and cigarette taxes by 80 cents per pack. Another victory! 

Nevada:

Question 4 Defeated: This less restrictive smoking ban question was not passed despite the support of NATO and many others.
Question 5 Passed: This question passed and does not allow smoking in most public places and hospitality establishments; smoking is allowed in casinos and hotel rooms. Imagine no longer being able to smoke in bars and restaurants in Sin City any longer. Looks like they are taking out the Sin... 

Ohio:

Question 4 Defeated: This less restrictive smoking ban question was not passed.
Question 5 Passed: This question passed and does not allow smoking in most public places and hospitality establishments; smoking is allowed in retail tobacco stores, hotel rooms, non-profit private clubs (veterans clubs, etc.) and outdoor patios of restaurants and bars.

South Dakota:

Measure 2 Passed: This question will increase taxes on cigars and pipe tobacco to 35% while cigarette taxes go up by $1.00 per pack to $1.53 per pack. Yet another defeat by those who would follow the historical choice of taxing the small population of smokers to pay for programs that benefit everyone.

DOCTORS, that's who!

The Los Angeles County Medical Association (LACMA) announced that its Board of Directors voted to oppose Proposition 86 because it would exempt hospitals from state and federal antitrust laws aimed at protecting patients.

Read the full press release.

LACMA is joined by the Association of California Neurologists and six other specialty medical associations in California. In addition, more than 50 individual physicians are opposing Prop. 86 due to the antitrust exemptions written into the ballot measure.

See the complete list of healthcare advocates opposed to Prop 86..

And Even More...

The number of organizations and individuals opposed to Prop. 86 has nearly doubled in the last month. The coalition, including law enforcement, taxpayer, medical and business organizations is now over 370 strong. Below are just some of the newest groups against 86:

League of Placer County Taxpayers
Placer County Deputy Sheriff's Association
Regional Hispanic Chamber of Commerce
Turlock Unified School District
UNITE HERE International Union

See the full opposition list.

"I support efforts to curb smoking, but Proposition 86 isn't really about that. Only 10% of the $2.1 billion in new taxes goes to anti-smoking programs. The rest goes to special interests promoting the measure and to state programs where there is little assurance the money won't be wasted. Now is not the time to saddle Californians with billions in new taxes." - Governor Arnold Schwarzenegger.

I couldn't have said it better myself Gov!

Ok, this is a little off-topic but here goes... This month's Cigar Insider, a subscription PDF newsletter from the folks at Cigar Aficionado, reports on a story that I'd heard mention of already but really didn't take to heart until reading Gregory Mottola's article.

Appears that the anti-smoking Nazis across the pond, this time in the form of the UK watchdog group Office of Communications (not a government office BTW), have requested that Turner Broadcasting edit cartoons shown on the British children's TV channel called Boomerang.

It appears that these meddlers have taken offense to 2 (out of 2,000) episodes of "Tom and Jerry" that showed them smoking. The image shown at right is from "Tennis Chumps". The word is that the entire scenes will be cut or altered frame-by-frame to remove the "offending" material while no move has been made to remove the scenes of extreme violence that have a greater impact on child viewers...

The part that really got my dander up though was his questioning the effect on artwork if we allow revisionists to make art more socially acceptable based on the whims of today's "do-gooders". Imagine where we would be if someone started "slimming down" Ruben's figure studies 'cause looking at these larger beauties glamorized obesity? Or since plastic surgery is acceptable, image these self-appointed protectors deciding that we should give The Madonna implants or that David's sculpture should be "cut"...

Spare me... But of course, let me know what you think using the comments below!