Covering up the Truth – The real story behind SCHIP!

Article Points Out Folly of Using Cigarette Taxes to Fund Children’s Health Insurance

An article on the KXMB news web site (Bismarck, ND) points out a new concern that the government has to worry about, now that Congress has tied the financial solvency of the SCHIP (children’s health insurance) program to continued cigarette consumption.

“While the idea of smokers quitting their habit may seem like a good thing to some … what’s problematic is that if people quit smoking tobacco taxes are never going to fund the CHIP expansion. … That’s why the CHIP bill is such a fraud. Anybody with common sense knew that taxing tobacco use into extinction is not a sustainable way to fund government-provided health care. The taxes are too high, and the tax base is too small. … the point wasn’t ever to have tobacco users fund the bill inevitably. The point was just to get the foot of government health care expansion in the door. Once they had the CHIP expansion in place they knew full well that it would never go away, even if tax revenues from tobacco users did. So while we Americans were sold on the idea of getting government-provided health care at the expense of a not-so-sympathetic demographic like smokers the reality is that we’re all going to end up paying for CHIP as soon as the smokers finally give up their freedom to smoke in the face of blatant economic prohibition. It was a bait-and-switch from the get-go.”

I found this to be very interesting. Is the article on target? What are your thoughts? What do you think will occur? Do you think the industry still has resiliency? What do you think smokers will do? Will they find other channels like so many predict? Will they choose other options for tobacco satisfaction?


#1 jancascade on 02.12.09 at 1:31 AM

Why do you think obesity is an epidemic? The tobacco tax well is running dry so it is on to food and beverage choices now.

I sure hope SCHIP fails big time and they will not be able to fund any expansion. The health provisions of the Stimulus Plan are rationed health care and if they can’t expand SCHIP it will throw a money wrench into the for some providers big profits at the expense of the patient/doctor relationship.

#2 butthead on 02.12.09 at 11:24 AM

About time someone in the press put the truth out there.

#3 Bill Godshall on 02.12.09 at 5:53 PM

More sour graps won’t change SCHIP.

#4 Twin City Retailer on 02.12.09 at 9:33 PM

Bill its obvious you really have no sympathy for the many folks whose life depends on tobacco. You can say what you want but when our government misleads folks in every aspect it’s very scary. The government has it’s own agenda led by radical leftists that will ruin this country. It’s a shame that they govern by deceit!

#5 Sunny on 02.12.09 at 11:28 PM

I hope one day they tax the crap out of beer! I’m sure all the drunken politicians won’t ever let that happen!

#6 Kristynne on 03.10.09 at 12:35 PM

I feel that the government allowed this economy fall and now they have decided to stick it to the working class even harder now. Increase on the gas tax and now cigarettes.
Are they trying to get every one to quit or are they just scewing us again?
This tax increase does not make any sence to me. Tax the smokers to pay for SCHIP.
Health care in the USA is one the highest in the world. If the goverment steps into regulate the prices that hospital charge it’s patient (1000.00 for 1 bag of saline, 50.00 for Tylenol) then they would be able to insure the country with the taxes we pay now.
It would also help if they quit using are tax dollars for stupid thing like refurnishing the White House for every president. Don’t they have their own furniture? What happens to that stuff after they leave office?
As a working class person I decide if I smoke or not, but I should not be forced to quit smoking.
The government contradicts it’s self with higher taxes on cigarettes to fund SCHIP.They want us all to quit for health reasons and/or be forced to quit because of the tax increase we can’t afford to pay. (and how do they plan to pay for SCHIP?)
I do agree fully with Sunny’s comment about taxing the crap out of alcohol, but if they do it does’nt matter to the polititians because we already pay for there beer anyway.
If this doesn’t stop soon I feel that these kind of things will get so much worse for all of us.
Remember the Boston Tea Party; that was a great way for the Americans to say were sick of this crap. I wish we all could come together and stand up to this government of ours an say enough is enough.
Sorry for being so long winded. 🙂

#7 Big Tuna on 03.10.09 at 10:25 PM

I wish someone would shed some light on the uncontrolled cost of health care. The AntiSmoke guy Bill always talks about the cost of health care and how the cost of caring for an individual with illness from cigarettes is so astronomical but if healthcare was more reasonable and not burdened by extremely high costs how does the picture change? Just a thought!

#8 Big Tuna on 03.10.09 at 10:27 PM

Oh an by the way don’t let anyone fool you the pharmaceutical companies love creating new illness!

#9 jancascade on 03.11.09 at 12:12 AM

I read somehwhere the falling sales of the nicotine patch has led the drug company J & J to reshape it as as a diet patch. Nicotine is a stimulant and the obese will be sold these patches to help them control their appitites and get more physical exercise.

This new wonder drug be of course be prescription only and very costly.

#10 OTP Kid on 04.29.09 at 2:59 PM

How about these little cigars beating the tax increase level by changing the weight of their products? I wonder if the anti’s ever saw that one coming?

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