[Congressional Record Volume 155, Number 26 (Monday, February 9, 2009)]
[Extensions of Remarks]
[Page E219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CHILDREN'S HEALTH INSURANCE PROGRAM REAUTHORIZATION ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. PAUL E. KANJORSKI

                            of pennsylvania

                    in the house of representatives

                      Wednesday, February 4, 2009

  Mr. KANJORSKI. Madam Speaker, I rise today to raise my concerns about 
H.R. 2, the Children's Health Insurance Program Reauthorization Act.
  I voted in favor of H.R. 2, with some reservations. I fully support 
providing health coverage to children and support this legislation as 
it continues funding for 7 million children currently enrolled in SCHIP 
and will allow an additional 4 million children to be covered. 
Moreover, I support the efforts of this legislation to reach families 
that are eligible for this program but are not currently enrolled.
  At the same time, however, I am concerned about the increases in 
tobacco taxes that will be used to pay for the extension and expansion 
of this worthwhile program. In particular, I am concerned about these 
taxes for small manufacturers.
  For example, in my Congressional district, there is a small 
manufacturer, Avanti Cigar Company, that produces large cigars. The 
company currently employs 43 people and is concerned that the increased 
taxes as a result of this legislation will force the company out of 
business. In 2008, the company generated $6 million in revenues and 
paid $1 million federal excise taxes. With the increase in taxes 
included in H.R. 2, the company is facing a 40 percent increase and 
expects to pay $3.1 million annually in excise taxes. These increases 
may very well cause Avanti Cigar Company to close.
  From my perspective, at a time when our economy is in trouble and our 
small businesses are hurting, now is not the time to pass tax increases 
that may put some of these businesses out of business. In the coming 
months, it is my hope that we can revisit this issue and look for other 
ways to pay for providing health care to children that will not cause 
parents to lose their jobs.
  In closing, I appreciate the opportunity to voice my concerns about 
this legislations.

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