Washington, D.C. – U.S. Rep. Bob Etheridge (D-Lillington) released the following statement today regarding H.R. 3162, Children’s Health and Medicare Protection Act (CHAMP Act), which would fund the State Children’s Health Insurance Program through a 45-cent tobacco tax increase.
Etheridge voted against the bill because of the negative effects the tax increase would have on North Carolina’s economy and farm families in the Second Congressional District.
“I fully support the goals of providing healthcare to uninsured children, improving Medicare benefits for seniors, and providing rural healthcare. Unfortunately, however, I cannot support legislation that unfairly burdens the families of the Second District with the cost of funding those goals.
“North Carolina and a few other states will foot most of the bill for the benefits the CHAMP Act seeks to deliver. North Carolina’s citizens would pay more than four percent of the cost of this legislation while receiving about two percent of the benefit.
“I do not support smoking, and I have never smoked, but this bill is not fair to those who grow or use tobacco. The cigarette tax is regressive; falling hardest on those who can least afford it.
“Researchers at North Carolina State University estimate that North Carolina’s economy would lose at least $540 million a year through the tax’s indirect impact. North Carolina’s tobacco farmers grow a legal crop. These hard-working farm families have suffered greatly from transformations in the global economy. Because the Second District is the second-largest tobacco-producing district in the country, H.R. 3162 disproportionately affects farm families who work hard to be able to pay their bills and provide a better life for their children. This just doesn’t pass the fairness test.
“I wish I could support this bill for all of its laudable goals. When we are able to achieve these goals without placing undue burden on North Carolina’s farmers and low-income families, I will gladly vote to do so. However, with the current funding mechanism of a tobacco-tax increase I cannot support this bill.”
The House passed the bill by a vote of 225 to 204. The Senate must now consider its own version of the bill.