Bill to Tax Nicotine Vaping
According to the report of Washington examiner on Oct 25th, the U.S. House Ways and Means Committee has approved the nicotine taxation bill on Wednesday, which will be the first tax on nicotine liquids.
The bill was approved by the committee with 25 votes to 14 votes, and most Republicans voted against it. The bill will impose a $50.33 tax on every 1810mg nicotine e-liquid.
The bill defines the tax nicotine extensively, almost covers all kinds of non-tobacco nicotine products. It means that the nicotine pouches used as a consumed tobacco will be taxed as well. These products can have different product quality and will be taxed at a very high rate. For example, a can of 15 bags of small package, every package contains 6mg nicotine will be taxed $2.5.
One of the proponents of the bill, a Democrat called Tom Suozzi, said the key point of the legislation is to raise the price of e-cigarette products to let young people cannot afford. Suozzi said young people are sensitive about the change in price. We know this will help but cannot solve the whole problem.
The Joint Taxation Commission reported that once the new tax law is enacted, it will increase federal government revenue by $9.9 billion in the next decade.
The chief staff of the joint Taxation Commission estimate that if compose tax, the demand of e-cigarette will decrease by 22%.
We can estimate this bill will bring billions of dollars in revenue. But several members of the commission still express their question that the bill does not cover any illegal products such as THC, the main psychoactive chemical in cannabis.
Most republicans on this commission said THC should be supervised as most vaping related patients had used THC before they become ill.
Several republicans express that this bill will not prevent lung injury or correct the vaping popularity during adolescent.