SCHIP increased tobacco tax will black market flourish..

February 2, 2009 - The increase in the federal excise tax on tobacco products to fund SCHIP (State Children's Health Insurance Program) will hurt small tobacco manufacturers, tobacco wholesaler and tobacco retailers. (Fred Hoyt, President of Smoke N Go LLC, a chain of 18 smokeshop/convenience stores based in Abbeville, LA) The bill will price tobacco products out of the reach of many consumers. Hoyt believes the high tobacco prices will inspire a flourishing black market for cigarettes. No longer will people be robbing convenience stores for the money but will ignore the cash and just take cigarettes. Consumers will look for alternatives to get their tobacco supply such as placing orders on the Internet. We must bar the shipment of tobacco products through the U.S. Postal Service.

INCREASING FEDERAL CIGARETTE TAXES WILL NOT CREATE A BLACK MARKET IN THE UNITED STATES, Campaign for Tobacco-Free Kids, 9/11/2000.

Reference: Tobacco Tax Turmoil (Part 1)
SCHIP vote leaves retailers reeling over likely sales declines, security issues by Steve Holtz, CSP (Convenience Store/Petroleum) Daily News, 2/2/2009.

Archive of Supporting Documentation: U.S. Senate passes SCHIP..; A final vote on SCHIP is expected today - Thursday, Janaury 29, 2009..; SCHIP federal tobacco tax increase will deter nearly 1.9 million kids from using tobacco..; NATO - reauthorize SCHIP without imposing tax increases on tobacco products..; U.S. Senate Committee Votes to Expand SCHIP..; SCHIP Expansion approved by U.S. House of Representatives..; U.S. Congress gets ready to pass expansion of SCHIP..;
SCHIP expansion legislation time to try again..;
Congressional Democrats have scrapped plans for another vote on expansion of the SCHIP..
AWMA urges grassroots effort to defeat FDA tobacco regulation and SCHIP..
U.S. Federal tax increase on tobacco - try it again..
U.S. House fails to override SCHIP expansion veto..
Congress Sends An Extension of the SCHIP to President Bush..
Bush vetoes 2nd bill expanding the State Children's Health Insurance Program (SCHIP)...
Revised State Children's Health Insurance (S-CHIP) Bill..
Bush's SCHIP veto stands..
U.S. CONGRESS PASSES CHILDREN'S COVERAGE..
US edges closer to federal tax hike on tobacco products...
Lawmakers in Washington are working to reauthorize the State Children's Health Insurance Program (SCHIP) before it expires on September 30, 2007...