Dominican Republic Opposes Cigar Tax Increase

The Dominican Republic has joined Nicaragua in objecting to a proposed increase in the tax on some premium cigars from 5 cents to $10 (a 20,000 percent increase). The small Caribbean nation, whose poverty has led many of its people to emigrate to the U.S., argues that the tax increase would wipe out 54,000 jobs.The tax increase would be used to expand the federal SCHIP health-care program to cover households earning up to up to $80,000 per year.