[Apr 19, 2007]
House Majority Whip James Clyburn (D-S.C.) on Tuesday said that Congress should consider increasing the federal tobacco tax to offset a proposed $50 billion expansion of SCHIP over five years, CongressDaily reports. Clyburn, whose constituency includes tobacco farmers, said that the farmers benefited from a $9.6 billion tobacco buyout in 2004 to help them transition out of the industry. Clyburn said, "Who would be hurt if we had an increase? The tobacco farmers got a great deal, so all we're talking about is people who choose to smoke cigarettes." House Budget Committee Chair John Spratt (D-S.C.) declined to comment on whether he would support a tobacco tax increase, and House Energy and Commerce Committee Chair John Dingell (D-Mich.) likely would prefer to offset SCHIP with cuts to Medicare Advantage reimbursements, according to CongressDaily. Meanwhile, the Senate Finance Committee during the next several weeks will be drafting an SCHIP proposal that might include a tobacco tax increase, according to committee Chair Max Baucus (D-Mont.). "Everything is on the table," Baucus said. Ron Pollack, executive director of Families USA, said that a possible solution would include both a tobacco tax increase and Medicare Advantage cuts (Cohn, CongressDaily, 4/18).