U.S. Tobacco Tax Hike Considered, May Help Pay for Health Insurance

An increase in the United States tobacco tax to help pay for children's health insurance?

To some, it sounds like poetic justice. TheAssociated Pressreports that the Democrat leadership in Congress is considering $50 billion in additional funding for federal children's health insurance programs, and the possibility exists that much of the money could come from an increase on tax the U.S. government puts on the sale of each pack of cigarettes.

While the Democrat leadership hasn't committed to a higher cigarette tax, theA.P.reports, lobbyists representing the health industry have been campaigning hard for the additional levy. The current rate is 39 cents a pack.

"I've every reason to believe an increase in the tobacco tax will be part of the way expanded health insurance for children is paid for," the wire service quotes Ron Pollack, executive director of Families USA, an advocacy group that promotes universal health insurance, as saying.

About 45 million American smoke cigarettes, the wire service reports, and the federal tax generates approximately $7.2 billion to the general fund of the U.S. Treasury.

source:www.washingtonpost.com