Bush Admin. Just Says “No” to Tax Increase

Citizens for a Sound Economy (CSE) applauds the Bush Administration’s rejection of an Interagency Committee for Smoking and Health (ICSH) proposal to increase federal excise taxes on tobacco by $2.

Appearing before the House Budget Committee, Department of Health and Human Services Secretary Tommy Thompson emphatically stated, “…this administration does not raise taxes,” when pressed about the administration’s stance on the ICSH proposal.

CSE President Paul Beckner had these comments:

“By rejecting this five-fold tax increase on tobacco products, President Bush has proven again that he is on the side of the American taxpayer.

“This administration understands that raising tobacco taxes disproportionately affects lower and middle-income families. Individuals making $30,000 or less would have shouldered the majority of the $28 billion burden that would have been created by this tax increase.

“The ICSH proposal recommended a new tax to further fund anti-smoking efforts. The reality is states and the federal government – because of the existing federal tobacco tax and the state’s multi-billion dollar settlement with the tobacco industry – already have enough resources to fund anti-smoking programs.

“Levying five-fold tax increase on smokers who already pay sizable federal and state tobacco taxes is both unwarranted and unfair.”