I posted this in the Deeming Thread yesterday. Hopefully it gives people a Scope of just How Large and Just How Many Tax Increases (for Tobacco/Nicotine Products) are being proposed by the House majority.
From pages 714 ~ 719 of this House Ways and Means Tax Increase proposal...
4 SEC. 138504. INCREASE IN TAX ON CERTAIN TOBACCO
5 PRODUCTS AND IMPOSITION OF TAX ON
6 NICOTINE.
7 (a) INCREASING TAX ON CIGARETTES.—
8 (1) SMALL CIGARETTES.—Section 5701(b)(1) is
9 amended by striking ‘‘$50.33’’ and inserting
10 ‘‘$100.66’’.
11 (2) LARGE CIGARETTES.—Section 5701(b)(2) is
12 amended by striking ‘‘$105.69’’ and inserting
13 ‘‘$211.39’’.
14 (b) TAX PARITY FOR SMALL CIGARS.—Section
15 5701(a)(1) is amended by striking ‘‘$50.33’’ and inserting
16 ‘‘$100.66’’.
17 (c) TAX PARITY FOR LARGE CIGARS.—Section
18 5701(a)(2) is amended by striking ‘‘52.75 percent’’ and
19 all that follows through the period and inserting ‘‘$49.56
20 per pound and a proportionate tax at the like rate on all
21 fractional parts of a pound but not less than 10.06 cents
22 per cigar.’’.
23 (d) TAX PARITY FOR SMOKELESS TOBACCO.—
24 (1) Section 5701(e) is amended—
1 (A) in paragraph (1), by striking ‘‘$1.51’’
2 and inserting ‘‘$26.84’’,
3 (B) in paragraph (2), by striking ‘‘50.33
4 cents’’ and inserting ‘‘$10.70’’, and
5 (C) by adding at the end the following new
6 paragraph:
7 ‘‘(3) SMOKELESS TOBACCO SOLD IN DISCRETE
8 SINGLE-USE UNITS.—On discrete single-use units,
9 $100 per thousand.’’.
10 (2) Section 5702(m) is amended—
11 (A) in paragraph (1), by striking ‘‘or chewing tobacco’’
12 and inserting ‘‘, chewing tobacco,
13 or discrete single-use unit’’,
14 (B) in paragraphs (2) and (3), by inserting
15 ‘‘and that is not a discrete single-use unit’’16
16 before the period at the end of each such
17 paragraph, and
18 (C) by adding at the end the following new
19 paragraph:
20 ‘‘(4) DISCRETE SINGLE-USE UNIT.—The term
21 ‘discrete single-use unit’ means any product
22 containing tobacco that—
23 ‘‘(A) is not intended to be smoked, and
1 ‘‘(B) is in the form of a lozenge, tablet,
2 pill, pouch, dissolvable strip, or other discrete
3 single-use or single-dose unit.’’.
4 (e) TAX PARITY FOR PIPE TOBACCO.—Section
5 5701(f) is amended by striking ‘‘$2.8311 cents’’ and
6 inserting ‘‘$49.56’’.
7 (f) TAX PARITY FOR ROLL-YOUR-OWN TOBACCO.—
8 Section 5701(g) is amended by striking ‘‘$24.78’’ and
9 inserting ‘‘$49.56’’.
10 (g) TAX PARITY FOR ROLL-YOUR-OWN TOBACCO
11 AND CERTAIN PROCESSED TOBACCO.—Section 5702(o) is
12 amended by inserting ‘‘, and includes processed tobacco
13 that is removed for delivery or delivered to a person other
14 than a person with a permit provided under section 5713,
15 but does not include removals of processed tobacco for
16 exportation’’ after ‘‘wrappers thereof’’.
17 (h) IMPOSITION OF TAX ON NICOTINE FOR USE IN
18 VAPING, ETC.—
19 (1) IN GENERAL.—Section 5701 is amended by
20 redesignating subsection (h) as subsection (i) and by
21 inserting after subsection (g) the following new
22 subsection:
23 ‘‘(h) NICOTINE.—On taxable nicotine, manufactured
24 in or imported into the United States, there shall be
25 imposed a tax equal to the dollar amount specified in section
1 5701(b)(1) per 1,810 milligrams of nicotine (and a
2 proportionate tax at the like rate on any fractional part
3 thereof).’’.
4 (2) TAXABLE NICOTINE.—Section 5702 is
5 amended by adding at the end the following new
6 subsection:
7 ‘‘(q) TAXABLE NICOTINE.—
8 ‘‘(1) IN GENERAL.—Except as otherwise
9 provided in this subsection, the term ‘taxable nicotine’
10 means any nicotine which has been extracted,
11 concentrated, or synthesized.
12 ‘‘(2) EXCEPTION FOR PRODUCTS APPROVED BY
13 FOOD AND DRUG ADMINISTRATION.—Such term
14 shall not include any nicotine if the manufacturer or
15 importer thereof demonstrates to the satisfaction of
16 the Secretary of Health and Human Services that
17 such nicotine will be used in—
18 ‘‘(A) a drug—
19 ‘‘(i) that is approved under section
20 505 of the Federal Food, Drug, and
21 Cosmetic Act or licensed under section 351 of
22 the Public Health Service Act; or
23 ‘‘(ii) for which an investigational use
24 exemption has been authorized under
25 section 505(i) of the Federal Food, Drug, and
1 Cosmetic Act or under section 351(a) of
2 the Public Health Service Act; or
3 ‘‘(B) a combination product (as described
4 in section 503(g) of the Federal Food, Drug,
5 and Cosmetic Act), the constituent parts of
6 which were approved or cleared under section
7 505, 510(k), or 515 of such Act.
8 ‘‘(3) COORDINATION WITH TAXATION OF OTHER
9 TOBACCO PRODUCTS.—Tobacco products meeting
10 the definition of cigars, cigarettes, smokeless
11 tobacco, pipe tobacco, and roll-your-own tobacco in
12 this section shall be classified and taxed as such
13 despite any concentration of the nicotine inherent in
14 those products or any addition of nicotine to those
15 products during the manufacturing process.
16 ‘‘(4) REGULATIONS.—The Secretary shall
17 prescribe such regulations or other guidance as is necessary
18 or appropriate to carry out the purposes of
19 this subsection, including regulations or other guidance
20 for coordinating the taxation of tobacco
21 products and taxable nicotine to protect revenue
22 and prevent double taxation.’’.
23 (3) TAXABLE NICOTINE TREATED AS A
24 TOBACCO PRODUCT.—Section 5702(c) is amended by
1 striking ‘‘and roll-your-own tobacco’’ and inserting
2 ‘‘roll-your-own tobacco, and taxable nicotine’’.
3 (4) MANUFACTURER OF TAXABLE NICOTINE.—
4 Section 5702, as amended by paragraph (2), is
5 amended by adding at the end the following new
6 subsection:
7 ‘‘(r) MANUFACTURER OF TAXABLE NICOTINE.—
8 ‘‘(1) IN GENERAL.—Any person who extracts,
9 concentrates, or synthesizes nicotine shall be treated
10 as a manufacturer of taxable nicotine
11 (and as manufacturing such taxable nicotine).
12 ‘‘(2) APPLICATION OF RULES RELATED TO
13 MANUFACTURERS OF TOBACCO PRODUCTS.—Any
14 reference to a manufacturer of tobacco products, or
15 to manufacturing tobacco products, shall be treated
16 as including a reference to a manufacturer of taxable nicotine,
17 or to manufacturing taxable nicotine,
18 respectively.’’.
19 (j) REPEAL OF SPECIAL RULES FOR DETERMINING
20 PRICE OF CIGARS.—Section 5702 is amended by striking
21 subsection (l).
https://waysandmeans.house.gov/site...ns.house.gov/files/documents/NEAL_032_xml.pdf
