New Bill Proposes a 1,650% Tax Increase on Pipe Tobacco
In January of 2010, we had H.R. 4439, the Tobacco Tax Parity Act of 2010 which proposed raising the tax on pipe tobacco 775% from $2.8311 to $24.78 per pound.
Thankfully that bill died in committee.
Now we have S. 1403: IDEA Full Funding Act.
Instead of suggesting that pipe tobacco’s tax rate be brought up to the level of roll-your-own at $24.78 per pound, this time, they want to DOUBLE the tax rate on RYO first, and then bring pipe tobacco to that level of $49.55 per pound, which is a 1,650% increase.
Detail of the bill are as follows –
S. 1403 of the 112th Congress was introduced on July 21, 2011, by Sen. Thomas Harkin (D-IA) and referred to the Finance Committee.
S. 1403 (The IDEA Full Funding Act) proposes to provide increased educational funding for disabled and mentally retarded children with exorbitant increases in Federal tobacco taxes.
It specifies a tax increase on cigarettes from $ 50.33 to $ 100.50
It specifies a tax increase on Roll-Your-Own Tobacco from $ 24.78 to $49.55
It specifies a tax increase on Pipe Tobacco from $ 2.8311 to $ 49.55
That is not a typographical error. The intent is to raise the Federal tax on pipe tobacco to the same as Roll-Your-Own Tobacco – after they double the tax on RYO.
It specifies similar tax increases for all other tobacco products.
You can view the bill here: http://www.govtrack.us/congress/bill.xpd?bill=s112-1403
You can voice your opinion here: https://www.popvox.com/bills/us/112/s1403/report#nation
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