A bill to amend the Internal Revenue Code of 1954 to impose an excise tax of 16 cents an ounce on smokeless tobacco and to provide that the revenue from such tax shall be used to assist in financing the medicaid program under title XIX of the Social Security Act.

Amends the Internal Revenue Code to impose an excise tax of 16 cents an ounce on smokeless tobacco manufactured in or imported into the United States.

Appropriates to the Secretary of Health and Human Services to carry out the Medicaid program (title XIX of the Social Security Act) the revenues raised by such tax.