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The House Ways & Means Committee has revealed that it is considering a tax proposal on nicotine and tobacco as part of the funding bill for President Biden’s “Build Back Better” plan. The provision is designed to equalize taxation across all tobacco and nicotine products.
In other words, the tax on demonstrably less harmful products like vaping, snus, and smokeless tobacco would be the same as the tax on cigarettes – the most harmful tobacco product.
In addition to taxing all nicotine and tobacco products as if they were a cigarette, the provision increases the Federal tax on cigarettes by 100%, and raises all other tobacco taxes up to this new level.
What does this increase look like for safer nicotine and tobacco products?
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