ITG

I actually think this may be the smartest thing Bush has done, though he probably didn't realize it.

Most of you probably don't know the specifics of the bill, but my family is in the cigar business so it was a fairly major topic for us. Now, I'll admit, cigars have been fairly lucky in taxes so far- the current cap, since this bill didn't pass, is still 25 cents. I'll even admit I think they should probably be taxed a bit more. But this bill would've changed that cap to ten dollars (as of the original writing- I don't know if they changed it. I almost feel that they must have). A ten dollar tax for a single cigar. It would have nearly killed the cigar industry in this country. For one thing, you can't impose such a huge tax and calculate it on current sales- there would be a huge drop-off, leaving them short money. So the program is already completely flawed because no, in reality it can't pay for itself. So it's ill-conceived even in the formula of the payment plan. But that's not the real reason it was an incredibly stupid bill.

The real reason is because of the economic fallout such a blow to the American cigar market would have on a global scale. America is the world's largest cigar market, by far. Loss of income from the US would destroy the farms and factories in other countries. The cigar industry, you see, is an oddity- it is one of the few large global economies that is still mostly what is considered a "family business." At the essential level, the cigar industry is based locally. The owners usually come from the countries that they operate out of. Most of the money in the cigar business goes to those countries and stays there. Most tobacco comes from Latin American and South American countries, the skilled labor is in those countries, the box work is almost exclusively done in Europe and Asia... in many Latin American countries, like Nicaragua, tobacco is one of the biggest industries. The loss of the American market would cut off a huge source of income for those countries, wreaking havoc to their economies. Scores of thousands would lose jobs, often the best jobs to have in some regions of those countries. Such a move is bad not only from an economic perspective, but also from a foreign policy perspective- we won't make any friends from hurting their economy.

So all-in-all, it was an ill-conceived bill from the start, and I didn't get into my dislike for mandatory state healthcare, which is nowhere near the bliss some people make it out to be. I would personally be interested in seeing a few takes at a sort of waiver system, where everybody pays the tax but you can opt for part of your taxes back if you want to go private, simply because I think it might be a workable compromise we can all be slightly dissatisfied with instead of violenly opposed to.

__________________

It matters not how strait the gate, How charged with punishments the scroll,
I am the master of my fate; I am the captain of my soul.

fat_enchilada

I agree with it, but only because it places too much of a tax on cigarettes - in places like Texas the price is so high already that there's an illegal tobacco trade. But you know what? If they legalized cannabis they'd save 40 billion dollars in expenses, and reap 30 billion dollars in taxes, so I say legalize it and use it all to insure as many kids as possible!

To his credit, though, President Bush has said he will work with congress to provide a bill that will keep everyone currently covered, still covered. I believe he is being honest.