Early in February, the president signed a law to triple the federal excise tax on cigarettes -- which will jump from 39 cents per pack to $1.01 today. His administration projects this tax hike will bring in at least $38 billion over the next five years.
The tobacco tax hikes will be used to finance an expansion of the State Children's Health Insurance Program, or SCHIP. The expansion, which will cost $35 million over five years, is expected to secure federally funded health care for an additional 4 million children.
Hmm. Let’s see now; the tax hike is projected to bring in $38 billion over five years; SCHIP will get $35 million over 5 years.
I wonder where the remaining $37.965 billion will go?
Obama promised repeatedly that 95% of American families would get a tax cut. So it's especially fitting that he chose April Fools Day to implement his first tax increase -- which will fall mostly on individuals and families who do not make anywhere near $250,000 per year.
Who’s the April fool? Three guesses; the first two don’t count.
Wow. How did I not realize that until you mentioned it?
ReplyDeleteA serious lower and middle class tax increase on April Fool's day. If I read that in a story I'd consider it "too on the nose."