The Finance Committee of the U.S. Senate is considering a bill that could result in a sharp increase in the federal tax on cigars to as much as $10 per cigar. The bill, which is scheduled to be amended today, seeks to add $35 billion in funds to the State Children's Health Insurance Program, which helps uninsured children. The Senate plan seeks to fund that increase with taxes on tobacco products.
President Bush has said he would veto the legislation.
For much more on this story, see today's Cigar Insider.
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