Proposed Tobacco Tax Hikes Removed from Build Back Better Act Draft


Many in the tobacco industry, including trade associations, manufacturers and retailers, pushed back against the tax hikes. Currently, the Biden Administration has scaled back the Build Back Better plan which would involve the U.S. spending $1.75 trillion over the next decade. $555 billion of this plan would be set aside for climate-friendly policies. At the pressure of conservative Democratic senators, other initiatives have also been removed from the proposed act including two years of free community college, paid family and medical leave, and laying the framework for Medicare to negotiate prescription drug prices. Currently, proposals have been made which would increase the taxes paid by large corporations and levying more taxes on those making more than $400,000 per year.

Tobacco tax increases may not be part of the current draft of H.R. 5376 but it could return in future drafts of the bill.