Poor and African Americans Overwhelmingly Pay for SCHIP

SCHIP was one of the most contested bills involved in a dramatic struggle between former President George W. Bush and the Democratic lead Congress. The bill passed through both houses of Congress only to be vetoed by Bush and died without enough support to overrule the President's verdict. Therefore it is not a surprise that one of the first agendas of Congress under the administration of President Barack Obama, was to see SCHIP passed. H.R. 2 was signed into law on February 4, 2009 by Obama and hailed by many as a victory for the poor and middle class children who's parents cannot afford health care and do not fall under the qualifications to receive medicaid. This outlook was confirmed in a statement by Obama during the signing ceremony.

It is a responsibility that has only grown more urgent as our economic crisis has deepened, health care costs have exploded, and millions of working families are unable to afford health insurance. Today in America, eight million children are still uninsured – more than 45 million Americans altogether.

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That is why we have passed this legislation to continue coverage for seven million children, cover an additional four million children in need, and finally lift the ban on states providing insurance to legal immigrant children if they choose to do so. Since it was created more than ten years ago, the Children’s Health Insurance Program has been a lifeline for millions of kids whose parents work full time, and don’t qualify for Medicaid, but through no fault of their own don’t have – and can’t afford – private insurance. For millions of kids who fall into that gap, CHIP has provided care when they’re sick and preventative services to help them stay well. This legislation will allow us to continue and build on these successes.

H.R. 2 expanded funding to CHIP by $35 billion and will be paid for by an increase in tax on tobacco products. The new plan will increase taxes on cigarettes by $.61 to $1.00 per pack. There will also be an increase on most other products including cigarillos, rolling papers, loose tobacco, and levies on tobacco products. The main concern for the SCHIP program is to provide families, which do not qualify for medicaid, health insurance for their children. However, the increased tax on tobacco may interfere with another of President Barack Obama's promises to the American people.

"...and I can make a firm pledge, under my plan, no family making less that $250,000 a year will see any form of tax increase, not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

( emphasis mine - see above video) A recent Gallup poll has determined that the majority of smokers are the working poor. The poll asked around 72,000 Americans if they smoked and correlated the answer with the individual's income. The findings show that the percentage of people who smoke increased the lower their income. The only exception was the lowest income bracket that is disproportionate due to the inclusion of college students. (Margin of error +1/-1) The study also found that smoking habits are held more by black Americans than any other ethnicity. In the time since the Gallup poll has been released, news organizations and bloggers have been questioning whether the tax violates President Obama's pledge to lower and middle class Americans. Many others have also wondered if there is a correlation with the amount of education one holds and smoking, given that most individuals of a lower income bracket tend to have a lower education and the lowest income bracket having a unique result because it contained college students. The situation may not be a case of discrimination against the poor or minorities since President Obama himself is a smoker, who has vowed to quit. If he does not though, he will be subject to the same taxes. It is also evident that many who support the bill also support initiatives to help Americans quit smoking and thus relieving the medical tax burden on the nation.