Children's health program loses millions due to tobacco-tax loophole
A tobacco tax loophole in President Obama's children's health-insurance program cost the government more than $250 million in its first year, public health officials say.
Barack Hussein Obama must be proud of himself. In an effort to balance the budget, he has managed to decrease revenue and increase spending. Just like most of his other plans to balance the budget.
Or to explain this in a different way, this is like the federal government passing a "Global Warming" reduction bill that includes making it a crime to breathe, and then spending years working on an environmental impact report to determine the consequences of repealing the part of the law that criminalizes breathing.
As this article goes on to explain, the difference between rolling tobacco and pipe tobacco is about $21.00 per pound in taxes. Since business is never as stupid or corrupt as politicians, rolling tobacco is being relabeled as pipe tobacco. The federal government which so carefully writes these bills, and monitors their effect, never noticed the annual loss of $250 million of tax revenue. The state of Oregon, not being quite as incompetent and corrupt as the federal government did notice that the new federal law caused a major decrease in tax revenue.
Fortunately for the tobacco industry, federal politicians who are always willing to rush to pass poorly written laws, will never rush to fix poorly written laws.
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