Bill > HR1798

This bill aims to standardize and increase excise taxes on various tobacco and nicotine products to create tax parity across different types of tobacco goods. Specifically, the End Tobacco Loopholes Act would significantly raise tax rates on products like roll-your-own tobacco, pipe tobacco, smokeless tobacco, small and large cigars, and introduce a new tax on nicotine used in vaping products. The bill defines new categories like "discrete single-use units" for tobacco/nicotine products and establishes a tax structure for these items. For example, the tax on small cigarettes would double from $50.33 to $100.66, and new taxes would be imposed on nicotine extraction and concentration. The bill also includes provisions for inflation adjustments to these tax rates starting in 2027 and establishes floor stock taxes to ensure existing inventory is taxed at the new rates. Additionally, the legislation provides some exemptions for nicotine used in FDA-approved drugs or medical products and includes transition rules for manufacturers and importers to adapt to the new tax regulations. The overall goal appears to be reducing tobacco and nicotine product use by making these products more expensive and closing existing tax loopholes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1798/all-info