With the program set to expire in days, will Congress get its act together to get the legislation on the President's desk?
As the Sept. 30 expiration date for the State Children's Health Insurance Program (SCHIP) looms, there has been much activity on Capitol Hill to reach agreements to reauthorize and expand the project, despite multiple veto threats from President Bush and his administration.
Last week, Congress joined to negotiate terms of the expansion. The House had previously proposed a 45-cent increase on the federal excise tax on tobacco to generate $50 billion to fund the program, while the Senate proposed a 61-cent increase on the federal excise tax on tobacco to generate $35 billion over five years. Today, the House approved the Senate's version of the SCHIP proposal with a 265-159 vote -- not enough to override a Presidential veto, The Associated Press reported.
And next week, the Senate is slated to vote on the bill. However the bill still might not be safe from a veto, as both chambers of Congress needs a two-thirds majority to override a veto, according to the report.
While it can only be speculated what exactly will happen to SCHIP after Sept. 30, it might be worthwhile to think of the worst-case scenario for c-stores -- an increase in the federal excise tax on tobacco products. With profits diminishing in the category, especially with cigarettes, what will this mean for your business? What plans do you have in place to limit the impact an increase would have on your business?
Or, if that's too improbable for you, what do you think will happen to SCHIP and a federal excise tax increase?
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