Massive Tobacco Tax Proposal Would Raise Cigar Tax Up To 1000%

This morning the PCA (Premium Cigar Association) sent out the following alert…

Senator Durbin (D-IL) has reintroduced a massive tobacco tax increase as part of a bill that is otherwise intended to address maternal mortality. Buried within S. 411, the Mothers and Offspring Mortality and Morbidity Awareness Act (MOMMA’s Act), are changes to the tax code that would treat the entire tobacco industry as cigarettes. The result is an estimated 500—1000% increase on the tax for premium cigars (depending on size) and a 1650% increase on the tax for pipe tobacco! 

On page 40 of the 47 page bill it states,

(e) TAX PARITY FOR LARGE CIGARS.—
(1) IN GENERAL.—Paragraph (2) of section 3 5701(a) of the Internal Revenue Code of 1986 is amended by striking ‘‘52.75 percent’’ and all that follows through the period and inserting the following: ‘‘$49.56 per pound and a proportionate tax at the like rate on all fractional parts of a pound but not less than 10.066 cents per cigar.’’

This bill will raise the costs for manufacturers, retailers, and consumers. Jobs, businesses, and the ability to buy and enjoy a premium cigar will be at risk!

Take action now by letting your US Senators know that S.411 (MOMMA’s Act) shouldn’t be paid for on the back of a single industry!  Click here to have your voice heard: https://oneclickpolitics.global.ssl.fastly.net/messages/edit?promo_id=12153

Senate Bill 411 on Scribd