The House Ways & Means Democratic staff has begun circulating a list of priorities and revenue raisers for the “Human Infrastructure” bill that will be voted on in coming weeks through the reconciliation process that only requires a simple majority (51 votes) in the Senate. This is the first step in this process and unfortunately the committee’s priorities include a $96 billion tobacco tax increase that would likely include both premium cigars and pipe tobacco among other products.
The proposed tax will change the current federal tax rate from 40 cents per cigar, to $49.56 per pound. For some cigars this could raise the federal tax to over $3.00 per cigar.
Tuesday the committee will be meeting to discuss their priorities. It is critical that premium cigar consumers, retailers, and manufacturers contact Congress to oppose these detrimental tax increases especially in the Ways & Means Committee Member districts.
Over the course of the last 24 hours, the level of threat has risen as congress considers new ways to raise revenue to pay for sweeping new programs. While taxes on the nation’s wealthiest citizens is a primary target, some in congress are using this moment to press for tax increases on tobacco as a whole, and premium cigars and pipe tobacco specifically.
The threat of rolling Senator Dick Durbin’s “Tobacco Tax Equity Act” into some of the packages under consideration is real. This action could result in a 1000% tax increase on premium cigars, and a 2,100% increase on pipe tobacco. Their goal: To raise $96 billion, in tobacco taxes alone….
This comes at a time of regulatory uncertainty and in the midst of a national economic recovery. It’s an attack on American small businesses, and a threat to the economies and political stability in some of the most fragile nations in this hemisphere.
Contact your members of the U.S. House of Representatives and U.S. Senate TODAY! Tell them new tobacco taxes, especially on premium handmade cigars and pipe tobacco will destroy your business! Tell them:
- This violates the pledge NOT to Raise Taxes on those making less than $400,000 annually;
- They can’t raise taxes as the industry faces new regulatory threats;
- Such tobacco tax increases NEVER raise the level of revenue that is projected, while destroying jobs and local small businesses.
ACT NOW. TELL THEM TO SAY NO TO NEW CIGAR AND PIPE TOBACCO TAXES!
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