Vaping Tax Increase Considered By Congressional Democrats

Beneath the surface of a gargantuan $ 3.5 trillion spending plan, House Democrats have proposed higher taxes on tobacco and nicotine products to fund this incredibly important credit proposal.

WASHINGTON – Congressional Democrats have proposed higher taxes on tobacco and nicotine products to help fund President Joe Biden $ 3.5 trillion federal spending program. This measure may increase current federal levies on cigarettes, cigars, roll-your-own, e-cigarettes and known vaping products.

“But in the end, that would fall heavily on tobacco users – a large part of the group that earns less than $ 400,000 that President Biden has promised not to see a tax increase,” writes Ulrik Boesen, analyst. principal of excise tax policies at the Tax Foundation, in a blog post posted on their website on September 13, 2021.

“If the administration views a tobacco tax increase as a tax on consumers as it did for a gasoline tax increase, the proposal could be short-lived,” Boesen said. “Doubling the tax rate on cigarettes results in a high rate, but parity of taxes on all products results in significantly higher increases on other tobacco products. “ online reports that businesses typically pass the increased costs of so-called excise taxes on to their customers, which means higher prices for actual goods at the point of sale.

This means that the increase in tobacco and nicotine products, including vapes, will see an exorbitant increase in a point of sale.

“Level ([the] dollar amount) of the excise tax should reflect the harms of nicotine products over traditional tobacco products, ”Boesen added. “The Royal College of Physicians released a report recommending a 5% tax over the tax on combustible tobacco. To illustrate how this would work in the context of this proposal: if a pack of cigarettes is taxed at $ 2.00, the tax on vapor products should be $ 0.10 per pod for closed systems, since a pod is a substitute for a pack of cigarettes.

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