A Cigarette Tax To Pay Health Insurance Costs Debated

by Heather McLaughlin

A current law being debated would impose a tax on cigarettes that would be used to pay the cost of children’s health insurance. The Bush Administration argues that the costs would be passed on to those who can least afford it: lower-income families.

“Ironically, the proposed legislation would increase taxes on low-income taxpayers as a way to fund health coverage for low-income individuals,” Health and Human Services Secretary Mike Leavitt said Tuesday in a letter to Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa.

Proponents of the law say it would help insure 3.5 million children who currently don’t have coverage. Opponents say it’s merely a “gimmick” which can’t be sustained. There will be more debate before a final vote.