S.819 - End Tobacco Loopholes Act (119th Congress)
Summary
S.819, the "End Tobacco Loopholes Act," aims to amend the Internal Revenue Code of 1986 to establish tax rate parity among all tobacco products, including cigarettes, roll-your-own tobacco, pipe tobacco, smokeless tobacco, and cigars. The bill also introduces a tax on nicotine used in vaping products and adjusts tax rates for inflation. It addresses loopholes by ensuring consistent taxation across different forms of tobacco and nicotine products.
Expected Effects
The likely effect of this bill is an increase in the cost of tobacco and nicotine products, potentially leading to decreased consumption. The increased tax revenue could be used to fund public health programs or reduce the national debt. This bill could also impact the tobacco and vaping industries, potentially leading to changes in product offerings and market dynamics.
Potential Benefits
- Increased tax revenue for the government, which could be allocated to public health initiatives or debt reduction.
- Potential reduction in tobacco and nicotine consumption, leading to improved public health outcomes.
- Addresses tax loopholes, creating a fairer and more equitable tax system.
- Discourages youth initiation of tobacco and nicotine use due to higher prices.
- Levels the playing field for different tobacco products by establishing tax parity.
Most Benefited Areas:
Potential Disadvantages
- Increased costs for consumers of tobacco and nicotine products, potentially disproportionately affecting lower-income individuals.
- Potential for a black market to develop for cheaper, untaxed tobacco and nicotine products.
- Negative impact on the tobacco and vaping industries, potentially leading to job losses.
- Could lead to consumers switching to cheaper, potentially more harmful, alternatives.
- Increased administrative burden for businesses to comply with the new tax regulations.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the constitutional power of Congress to levy taxes, as outlined in Article I, Section 8, Clause 1, which grants Congress the power to "lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." The bill does not appear to infringe upon any specific constitutional rights or freedoms. The bill's focus on taxation falls squarely within the enumerated powers of Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).