Democrats’ SCHIP Expansion Would Be Funded By A Tax On The Poor And Uneducated

Because that’s the demographic that tends to smoke more than any other.

WASHINGTON – Congressional Democrats have chosen an unlikely source to pay for the bulk of their proposed $35 billion increase in children’s health coverage: people with relatively little money and education.
The program expansion passed by the House and Senate last week would be financed with a 156 percent increase in the federal cigarette tax, taking it to $1 per pack from the current 39 cents. Low-income people smoke more heavily than do wealthier people in the United States, making cigarette taxes a regressive form of revenue.
Democrats, who wrote the legislation and provided most of its votes, generally portray themselves as champions of the poor. They do not dispute that the tax plan would hit poor communities disproportionately, but they say it is worth it to provide health insurance to millions of modest-income children.

So it’s ok to tax the poor…when they’re smoking. Because liberals don’t like smokers. Oh, and by the way, the rest of the funding for this legislation will come through cutting funding for a health care plan for poor senior citizens.
This does kind of put the Dems between a rock and a hard place. On one hand, if the smokers keep smoking it’ll be the poor paying this tax. On the other hand, if the smokers stop smoking the SCHIP expansion won’t be fully funded.
Anyone thinking that this is an economically feasible way to fund an entitlement expansion is a fool. But then, the Democrats probably don’t care. If the funding falls short from smokers they’ll just make us all pay for SCHIP.

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  • http://Array Neiman

    I just thought about taxing cigarettes, we could follow the suggestion of others here to legalize marijuana ASAP on a federal level, then heavily tax marijuana and not only would it help fund the expanded SCHIP program, it could fund it for decades, as liberals don’t hate marijuana. The new slogan would be:

    Legalize and Smoke Marijuana Now – Because We Love The Children.

  • http://oregonguythinks.blogspot.com/ OregonGuy

    Raise taxes first, think later? Okay, if you’re a Democrat. But while they give with one hand remember, they’re taking with the other. It’s all about the current “fair”. I wrote about the impacts on our state’s poor here.

  • http://sayanythingblog.com/ likwidshoe

    How are they going to tax the black market?

    Good luck with that nanny-staters. People aren’t going to sit by and pay for this crap.

  • Neiman

    On Fox Sunday, I heard that up to 200,000 adults would be included and the children of people making $89,000 per year. I could be mistaken about the exact numbers, but that is what Trent Lott was saying.

    I had the same thoughts about it being a regressive tax, harmful to the poor and if people stopped smoking, the Democrats would never let the program die so we would all pay for it, despite Schumer claiming the high moral road about this being a fully funded program.

    Elsewhere at SA, I read where someone said this was a back door to socialized health care. Schumer verified that by saying it would force people off private health insurance to get the free ride of government paid health care.

    Oh, if the government pays for this, does that mean they are a profit making enterprise and we won’t have to pay a dime?

  • http://sayanythingblog.com/readers/entry/white_folks_greed_runs_a_world_in_ Joel

    Rob,

    I wonder how that’ll affect my Padron Anniversario’s or my Arturo Fuente Cigars…

  • gavelect

    I think this is a great idea, it does not really matter where it comes as long as it is available to our children, this could be us on our way to having a health system where one is equal and out with the private medical insurance systems that fail so much citizens.

  • halatbis

    They buy a few million votes here and a few million there, pretty soon it adds up to winning the 2008 election–Schumer is no dummy. It is pretty clear that our votes can be bought, and we are willing to sell our independence in bits and pieces.

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