Congressman Raja Krishnamoorthi, Senators Dick Durbin and Ron Wyden, Reintroduce the End Tobacco Loopholes Act to Increase Tobacco Tax Rates and Reduce Tobacco Use in America

WASHINGTON – Today, Congressman Raja Krishnamoorthi (D-IL), Senator Dick Durbin (D-IL), and Senator Ron Wyden (D-OR) reintroduced the End Tobacco Loopholes Act, bicameral legislation that will establish new federal taxes on e-cigarettes and vaping products. Closing tax loopholes for tobacco companies will generate new federal revenue, reduce public spending on health care, and reduce tobacco product usage, specifically among young Americans and children. Increasing the price of tobacco products is the single most effective way to reduce tobacco use across the board in America, according to public health experts.

“Big Tobacco has systematically targeted Americans and their children with advertising for decades, first with cigarettes, now with e-cigarettes and vaping products,” Congressman Krishnamoorthi said. “Unless we begin taxing e-cigarettes like other addictive products, Big Tobacco will continue to hitch future generations of Americans to a lifetime of addiction and health issues. To properly end the youth vaping crisis, it’s time to make Big Tobacco pay its fair share and hit them where it matters: their bottom line.”

“Big Tobacco’s deadly profit scheme relies on addicting children. Our most effective strategy to reduce smoking and prevent a new generation from becoming addicted is to price these dangerous tobacco products out of the reach of children. But federal law has not been updated in 16 years, creating loopholes that Big Tobacco has used to hook kids,” Senator Durbin said. “The End Tobacco Loopholes Act would help reduce tobacco and e-cigarette use, save billions in health care costs, and improve the health of children for generations to come."

“Big Tobacco is driving addiction, particularly among young people, and raking in the profits,” Senator Wyden said. “This bill is about the health and safety of young people in America and accountability for the tobacco industry. Closing tax loopholes on tobacco products and setting the right policies to discourage their use is a public health no-brainer."

“The End Tobacco Loopholes Act is long overdue and will not only reduce tobacco use, especially among youth, but will also help to increase federal revenue and lower health care spending at the same time. The evidence is clear that raising tobacco prices through higher taxes is one of the most effective ways to reduce tobacco use, especially among children. Yet federal tobacco taxes have not been increased in more than 15 years. The current system for taxing tobacco products is not simple. Some tobacco products, like e-cigarettes, are not taxed at all at the federal level. These loopholes allow products to remain on the market at lower prices, discouraging tobacco users from quitting and encouraging youth to start using them,” Yolonda C. Richardson, President and CEO, Campaign for Tobacco-Free Kids, said.

“Pediatricians often say that tobacco use is a pediatric disease because it almost always starts in adolescence, and we know that the harmful health effects can last a lifetime. That’s why proven policies that make tobacco and nicotine products less accessible to young people are critical to promoting lifelong health. The End Tobacco Loopholes Act would help reduce youth uptake of these products, preventing future chronic disease and nicotine addiction. The AAP applauds Senator Durbin and Representative Krishnamoorthi for introducing this bill and calls on lawmakers to swiftly advance it,” Susan Kressly, MD, FAAP, president of the American Academy of Pediatrics, said.

Despite recent progress, tobacco remains the leading cause of preventable death in the U.S., claiming over 490,000 lives each year—almost one in five deaths nationwide. Tobacco-related health care costs Medicaid $68 billion per year, more than 20 percent of Medicaid’s spending. Additionally, smoking costs the U.S. economy more than $600 billion in health care costs and lost productivity yearly, according to the American Lung Association. The most cost-effective way to reduce tobacco use is by increasing tobacco prices through higher taxes. The World Health Organization (WHO) found that a 10 percent tax increase would cut tobacco use by 4 percent in high-income countries, including the United States.

Congressman Krishnamoorthi serves as co-chair of the Congressional Caucus to End Youth Vaping and has been a leader in Congress on tackling Big Tobacco’s efforts to advertise to children and young adults. In December, Congressman Krishnamoorthi, Ranking Member of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP), announced an investigation into illicit vaping products from China with advertising targeted at children.

The End Tobacco Loopholes Act is endorsed by Campaign for Tobacco-Free Kids, American Lung Association, American Heart Association, American Academy of Pediatrics, Parents Against Vaping, and American Cancer Society Cancer Action Network

The full bill text is available here.