[Congressional Record Volume 150, Number 129 (Sunday, October 10, 2004)]
[Extensions of Remarks]
[Page E1852]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CONCERN ON PROPOSED NEW TAXES ON CIGAR MANUFACTURERS

                                 ______
                                 

                          HON. ADAM H. PUTNAM

                               of florida

                    in the house of representatives

                       Thursday, October 7, 2004

  Mr. PUTNAM. Mr. Speaker, today I rise to express my grave concern 
about the proposed new taxes on cigar manufacturers included in the 
FSC/ETI conference report. This new tax, which was not included in 
either the House or Senate version of the FSC/ETI legislation, amounts 
to $282 million. Companies in the State of Florida will pay more than 
75 percent of this tax increase.
  I do not know how this new tax provision appeared in the conference 
report, but it is bad policy. This is supposed to be a jobs bill for 
all Americans, but I am afraid that this new tax will cost jobs in my 
state. For the historic Florida cigar industry, this provision is 
nothing more than a tax increase and job killer.
  Since cigar manufacturers generally do not use the types of tobacco 
being ``bought out,'' it is improper to impose a new tax on them under 
this bill. We should not increase taxes on industries unless the new 
tax has something to do with the purpose of the new program. The cigar 
industry should not subsidize the cigarette and smokeless tobacco 
industry. I hope that this issue will be revisited in the near future 
and a correction can be made to reverse this ill-conceived tax 
increase.

                          ____________________