President Barrack Obama is expected to soon sign into law a bill approved by the Senate late Thursday that would expand the State Children’s Health Insurance Program  (S-CHIP) and raise tobacco taxes, prompting concern in the muni market about debt service payments on tobacco bonds nationwide.

When enacted, the S-CHIP legislation will raise the tax on cigarettes by 61 cents, to a total of $1 per pack, and increase the per-unit tax on other tobacco products.

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