“HR2 Looks to Move Smoothly Through House, Slower in Senate

Congress has introduced the reauthorization of the SCHIP bill–HR2. The cigar tax proposal is as follows:

52.4 percent on large cigars (most premium cigars follow under this federal classification) with a cap of no more than 40 (forty) cents per cigar. This is far lower than the original proposal from the Senate of $10 per cigar and $3 proposed by the House.

This has been a long, tough fight for all of us, and considering we are still being hit with a tax increase on cigars, our industry feels the proposed 40-cent maximum (cap) is sustainable and certainly better than the original proposals.

We expect HR2 to move smoothly through Congress and will not face defeating opposition. As more news develops we will continue to keep you informed.”

I fully expect this bill to pass and we may need to count our lucky stars it wasn’t $3 per cigar. The specualtion up to this was a much higher tax but thanks to the IPCPR and CRA(Cigar Rights of America) there has been a compromise.

  1. Eric says:

    Well, looks like we will end up with a brand new industry – black market cigars. Should be good money in it.