Tobacco Tax Bill Introduced In Congress

Care for Moms Act: U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Representative Robin Kelly (D-IL) introduced the Care of Moms Act which aims to promote access to prenatal and postpartum care and provides resources to mothers. Included in the bill are provisions that would substantially increase the tax on tobacco products:

  • Increase the tax on cigarettes from $1.01 to $2.02 per pack.
  • Implement a new e-cigarette tax that would equalize to the tax on cigarettes (methodology and rate to be determined by Secretary of Treasury).
  • Increase the tax on moist snuff from 11-cents per 1.2 oz. tin to $2.02 per can.
  • Double the tax on small cigars (from $50.33 to $100.66).
  • Implement a new weight-based tax methodology on large cigars resulting in large tax increase.
  • Double the tax on RYO (from $24.78/lb to $49.56/lb).
  • Equalize the tax on chewing tobacco and pipe tobacco to tax these products like cigarettes.

Similar tax legislation has failed in past Congressional sessions.