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Nix the Tax

House Budget Reconciliation Bill Includes Extreme Federal Tobacco Excise Tax Hikes.


On September 13, 2021 the House Ways and Means Committee released its proposed list of “pay-for” tax revenue raisers as part of a $3.5 trillion budget reconciliation measure proposed by Congressional Democrats. The package includes a $96 billion tax increase on tobacco products.

The proposal would double the federal cigarette excise tax and attempt to equalize all other tobacco products to this new rate. The proposal ultimately would tax new product categories, including e-vapor and nicotine pouches, at rates higher than a standard pack of cigarettes per unit sold.


Oppose this massive tax increase. It violates the Administration’s pledge not to increase taxes on Americans making less than $400,000 a year – in fact, ninety-eight percent of Americans who will pay this tax make less than that a year. It will hurt jobs and the economy. It will create a large black market in tobacco products, putting more burden on law enforcement. It will reduce state tax and MSA revenues by over $1.5 billion annually. Now is just not the time tax working Americans.

https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/SubtitleISxS.pdf

https://taxfoundation.org/house-tobacco-proposal-bidens-tax-pledge/

Information provided by Altria Client Services LLC, 9/13/21

 

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