SCHIP
State Children’s Health Insurance Program
And how it’s going to affect the price of YOUR Cigars!
Everything you need to know is right there in the picture. (It may be crude but let’s
face it, we’re not artists!) The new SCHIP tax will go into effect on April 1st. 
Our well-intended, jackass politicians in Washington, D.C. have decided that only smokers can afford to pay for health care for children, so they have raised the federal tax on cigarettes 162%, the tax on cigars over 750%. That is not a misprint; the federal tax has gone from under 5 cents per cigar to 40 cents per cigar.
How will this affect the price of your cigar? Well, many manufacturers will margin that tax increase to about 70 cents at wholesale, maybe more on some more expensive cigars, maybe less on others. Many retailers will pass that along as an increase to you at up to "keystone margins", resulting in increases of as much as $1.40 per cigar on average. This will make the average $4.00 retail cigar sell for $5.40, raising a $100.00 box of 25 cigars to $135.00 at list price.
These are the real numbers. The tax on roll-your-own tobacco went up 2300%, but that is another story altogether. I believe the quote was "No new taxes on people who make less than 250,000 a year", but that should’ve ended with "unless they smoke." The President signed the bill on February 4, 2009.
What can you do?
Right now, you can come in to C•W and load up your humidor.
We have brought in plenty of cigars prior to the increases. Romeo and Julieta, Montecristo,
Ashtons, Macanudo, La Gloria, ACID, Punch, Hoyo de Monterey, Excalibur, JR Bundles, El Rey del Mundo,
and Arturo Fuente. Many of these cigars are available at great deals, some at buy one, get one at 1/2
price, others even at buy one, get one free at happy hour pricing!
What will Cigar Warehouse do?
As always, we will buy in large quantity and offer the best deals possible. We do the best to offer deals that compete with anyone in the country, no matter who or how big they are. We have always offered you the lowest prices anywhere and we will continue to do so. Bring your friends on in to C•W to get the cigars that you need, at the prices you know, and while we still have them at the old prices. Tip - the most popular cigars will be the hardest to get and every retailer in the U.S. will stock up to benefit from the increase. So get to us while we have the pre-SCHIP inventory and beat the government at their own game.