Democrats’ new tobacco tax would hit the poor hard
President Joe Biden during his 2020 campaign vowed not to raise taxes on anyone earning less than $400,000 a year. That promise recently hit an iceberg in the form of a new excise tax on nicotine. Kentucky Congressman John Yarmuth inserted the tax into the tome-like Build Back Better Plan bill last week. Yarmuth’s amendment appears to focus on e-cigarettes, vape juice, and other non-tobacco items by classifying them as extracted nicotine products with a max levy of over $50. That’s like the current tobacco tax. It’s unknown how much revenue Yarmuth hopes to raise, though the original Build Back Better Plan included $96 billion in tobacco and e-cigs taxes. Any nicotine tax will hit the lower and middle classes harder than anyone else.
