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Ways and Means to Consider Vaping Bill This Week (1)

Oct. 21, 2019, 5:18 PMUpdated: Oct. 21, 2019, 8:23 PM

The House Ways and Means Committee will mark up a bill Oct. 23 that would align the taxation of e-cigarettes and other vaping products with traditional cigarettes.

The bill (H.R. 4742)—introduced Oct. 21 by Reps. Tom Suozzi (D-N.Y.) and Peter King (R-N.Y.)—is a narrower version of a measure they introduced in September. The committee’s consideration comes amid broad concerns about the consequences of vaping, following a spurt of vaping-related illnesses.

The non-partisan Joint Committee on Taxation estimated that the bill would generate nearly $10 billion over 10 years.

The panel will also consider three other health-related measures.

A previous bill (H.R. 4425) from Suozzi and King would have banned flavored e-cigarettes while increasing the federal tax on cigarettes to $3 per pack from $1, with a similar tax on e-cigarettes.

A Senate bill from Sen. Dick Durbin (D-Ill.) (S.2517) would double the federal cigarette tax rate of $50.33 per 1,000, peg it to inflation, and apply the same tax rate to e-cigarettes.

The Trump administration said in September that it would clamp down on sales of most kinds of flavored e-cigarettes, but hasn’t announced a plan since.

Massachusetts banned the sale of all vaping products in the state through Jan. 25. New York and Michigan have both had calls for bans on flavored vaping products blocked in the courts.

To contact the reporter on this story: Kaustuv Basu in Washington at kbasu@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Colleen Murphy at cmurphy@bloombergtax.com