Bill · H.R. 1798· House(119-HR-1798)
End Tobacco Loopholes Act
- Introduced
- 3/3/2025
- Last activity
- 3/3/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Raja Krishnamoorthi
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
The "End Tobacco Loopholes Act" seeks to amend the Internal Revenue Code of 1986 to establish tax rate parity among various tobacco products. This legislation significantly increases excise taxes on cigarettes, roll-your-own tobacco, pipe tobacco, and small cigars. It also establishes new taxes on smokeless tobacco sold in discrete single-use units and imposes a tax on extracted, concentrated, or synthesized nicotine. Additionally, the bill introduces inflation adjustments for these tax rates starting after 2026. To address inventory held before these changes, the act imposes a floor stocks tax.
Yes
Does this raise the taxes companies pay?+5
The bill increases excise taxes on tobacco manufacturers and importers through higher rates on various tobacco products and new nicotine taxes.
The opposite· 3 of 5
Would business owners be better off under this?-5
Tobacco manufacturers and retailers face increased tax burdens and new floor stocks taxes on held inventory.
Would households on low incomes be better off under this?-4
The significant increase in tobacco excise taxes disproportionately impacts the disposable income of low-income households.
Would middle-income households be better off under this?-3
Higher prices for cigarettes and other tobacco products increase the cost of living for middle-income consumers.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Parity for Various Products: The bill aims to provide tax rate equity across different types of tobacco, such as increasing the rate for roll-your-own tobacco from $24.78 to $49.56 and pipe tobacco from $2.8311 cents to $49.56 (Section 2(a) and 2(b)).
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Taxation of Nicotine: A new tax is imposed on taxable nicotine, which includes any nicotine that has been extracted, concentrated, or synthesized (Section 2(g)(1) and 2(g)(2)).
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Tax Exceptions for Medical Use: Nicotine will not be taxed if the manufacturer or importer shows it will be used in a drug approved by the FDA or a specific combination product (Section 2(g)(2)(A)).
Potential Negative Impacts for People
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Increased Cost of Cigarettes: The tax on small cigarettes is increased from $50.33 to $100.66, and the tax on large cigarettes is increased from $105.69 to $211.38 (Section 2(h)).
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Increased Cost of Other Tobacco Products: Taxes are raised on several products, including small cigars (increased to $100.66), smokeless tobacco, and roll-your-own tobacco (Section 2(c) and 2(d)).
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New Tax on Nicotine: A tax is imposed on taxable nicotine based on the amount of nicotine per 1,810 milligrams (Section 2(g)(1)).
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Financial Burden of Floor Stocks Tax: A tax is imposed on tobacco products manufactured or imported in the United States that are held for sale after the tax rate increases (Section 2(j)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners-5Good For Low Income Households-4Good For Middle Class Households-3Good For Seniors-2
- Economy And Finance
- Increases Corporate Taxes+5Improves Small Business Support-3
- 6/24/2025
- 1 Cosponsor added.
- 3/31/2025
- 2 Cosponsors added.
- 3/3/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Steve CohenDemocrat · Tennessee
Eleanor NortonDemocrat · District of Columbia
Debbie Wasserman SchultzDemocrat · Florida