Federal Bill Proposes Increased Tobacco Taxes

(CSP) ... Senator Harkin proposes to raise the federal cigarette and tobacco product tax rates as follows:

• Cigarettes: $.55 per pack increase to a new federal tax rate of $1.56 per pack.
• Little Cigars: $.55 per pack increase to a new federal tax rate of $1.56 per pack, plus change the definition so that little cigars would be classified as weighing up to four and one half pounds per thousand, up from the current three pounds per thousand.
• Large Cigars: Would now be classified as weighing more than four and one half pounds per thousand.
• Chewing Tobacco: $7.80 per pound increase to a new rate of $8.30 per pound.
• Single-Use Pouch Units: Would have a new federal tax rate of $77.83 per 1,000 single use units.
• Pipe Tobacco: $36.29 per pound increase to a new federal tax rate of $38.32 per pound.
• RYO Tobacco: $13.54 per pound increase to a new federal tax rate of $38.32 per pound. Continued