Congress Passes Tobacco Tax Increase

On September 27, 2007, by a vote of 67-29, the Senate passed the Children’s Health Insurance Program Reauthorization Act of 2007 (HR 976), following House passage of the legislation on September 25, 2007, by a vote of 265-159. Additional funding for the insurance program is paid for with a 61-cent increase in the federal tax on cigarettes as well as tax increases on other tobacco products.

President Bush has threatened to veto the legislation for exceeding his spending proposals. The vote in the House would not have been sufficient to override a Presidential veto.