4/26/13: Proposed "Tobacco Tax and Enforcement Reform Act"
On April 26, 2013, U.S. Senator Frank Lautenberg from New Jersey, and Senators Durbin, Harkin and Blumenthal introduced the "Tobacco Tax and Enforcement Reform Act". The Act proposes to eliminate tax disparities between different tobacco products, increase the federal excise tax rate on tobacco products, and reduce illegal tobacco trafficking, The legislation lays out a comprehensive set of reforms that would help the federal government and states collect billions of dollars in tobacco tax revenues, which currently fund children's health insurance programs, while also helping to lower youth tobacco consumption and combat those who profit from the illegal trade of tobacco. Under current law, small cigars and roll-your-own tobacco products are taxed at the same level as cigarettes; however, cigars, smokeless tobacco, and pipe tobacco are taxed at a dramatically lower rate. In addition, the bill would raise the tax rate on all tobacco products by 93 percent, which is consistent with President Obama’s budget proposal to raise tobacco taxes. Read more at Senator Lautenberg's press release.
Last update: 4/30/13