10-25-2007, 06:11 AM
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#120 (permalink)
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Junkie
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Hey DC - Looks like some people in Congress are against SCHIP because they think the cost outweigh the benefits and not because of Bush. Go figure, who would ever think such a thing - a few in NC?
Quote:
I support SCHIP but ...
Boosting cigarette tax to fund it would devastate N.C. economy
Robin Hayes
From U.S. Rep. Robin Hayes, R-N.C.:
In September, the House and Senate voted on the final version of the State Children's Health Insurance Program (SCHIP) bill. At that time, I joined the majority of members from the North Carolina delegation -- Republicans and Democrats -- in voting against this bill because its costs fell disproportionately on North Carolina farmers and workers. Shortly after this bill passed, the president issued a veto.
Last week the House voted to uphold the president's veto of the SCHIP bill. I voted to support the veto because the bill continues to hit North Carolina harder than any other state with a tax that will hurt our economy and cost us jobs.
First of all let me say this. I support the SCHIP program, which was created in 1997 to reduce the number of uninsured children by providing subsidized insurance to children of the working poor. As it stands right now, the burden to pay for this particular reform falls squarely on the North Carolina tobacco industry. SCHIP proposes a 61-cent increase on tobacco -- a 160 percent increase. This will have grave consequences on the growers, manufacturers and workforce left in the industry, and would be detrimental across the state's economy.
How much will this tax hit North Carolina?
A study was done by Dr. Blake Brown, an economist at N.C. State University and an expert on the state's tobacco economy. He estimates the economic impact of the increase on North Carolina at about $540 million -- more than $200 million above North Carolina's expected allotment for the SCHIP expansion. This information was also included in the News & Observer on October 17, 2007:
• $15.6 million loss in production value.
• $10.3 million loss in annual payments under the Master Settlement.
• $12.5 million drop in N.C. cigarette tax revenue.
• $540 million drop in the value added by tobacco manufacturing.
• As many as 1,800 farm jobs lost.
In fact, a letter issued by the North Carolina Department of Agriculture and Consumer Services states that the negative impacts from the SCHIP bill outweigh the benefits.
Proponents of the increase stress that it would be used to expand the State Children's Health insurance Program, which provides health care to children and families across the country. An analysis by the Tax Foundation demonstrates that North Carolina households would be net losers, ultimately paying more in taxes than they would receive in SCHIP benefits.
It is my hope that we can get a bill that strengthens SCHIP without hurting North Carolina's economy. I have co-sponsored legislation called the SCHIP Extension Act of 2007. The legislation extends the authorization of the program for the time necessary to allow Congress to work in a bipartisan manner in order to craft a bill that will provide benefits to those low-income, uninsured children. It also increases the level of funding available to the states in order to ensure that every state's SCHIP program will be fully funded during this reauthorization period.
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http://www.charlotte.com/409/story/333207.html
__________________
"Democracy is two wolves and a sheep voting on lunch."
"It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion."
"If you live among wolves you have to act like one."
"A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."
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