BEIJING, July 11 (Xinhuanet) -- An extra 61 U.S. cents per pack is what American smokers would pay to finance expanded health insurance to about 2 million children under a tentative agreement worked out Tuesday between Republicans and Democrats on the Senate Finance Committee.

    The tobacco tax increase would boost the tax per pack from 39 cents to 1 U.S. dollar, an increase of 156 percent. It would raise about 35 billion dollars during five years to pay for the largest expansion of the Children's Health Insurance Program (CHIP) since its creation a decade ago.

    "It really does come down to a choice between children and tobacco," said Sen. Gordon Smith, R-Ore., who originally proposed the 61-cent increase. "This is a 'two-fer.' It does decrease smoking, and it does connect public health care costs with one of the drivers of that cost, and that's tobacco."

    The CHIP program has insured about 6.6 million children ineligible for Medicaid. Most are in families with incomes below 200 percent of the federal poverty level, or 41,300 dollars for a family of four. About 6 million children who are eligible for the program are not covered.

    In his 2008 budget, President Bush proposed adding 5 billion dollars over five years to the program, which currently costs almost 5 billion dollars per year. He has criticized some states' expansions of the program to adults and less needy children and could block any deal.

    "The program is going beyond the initial intent of helping poor children. It's now aiming at encouraging more people to get on government health care," Bush said Tuesday in Cleveland. "I'll resist Congress's attempt to federalize medicine."

    The tobacco industry opposes the deal, saying smokers pay 89 million dollars a day in federal and state taxes and tobacco settlement costs. "We think that smokers are already paying enough," said Steve Kottak of R.J. Reynolds Tobacco.

    (Agencies)