US Senators Propose Bill to End Tobacco Advertising Tax Subsidies

Feb.17.2023
US Senators Propose Bill to End Tobacco Advertising Tax Subsidies
Senators propose bill to end tax subsidies for e-cigarette and tobacco advertising to combat youth addiction.

On February 16th, Senators Jeanne Shaheen and Richard Blumenthal reintroduced the "No Tax Subsidies for E-Cigarette and Tobacco Ads Act" in Congress. The bill aims to crack down on e-cigarette companies and close a tax loophole that currently allows manufacturers to receive federal tax breaks on advertising expenses for e-cigarette and tobacco products.


In November 2022, federal data released by the US Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) revealed that over 3 million middle and high school students had used tobacco products in the past 30 days. The use of electronic cigarettes by teenagers has risen by 1800% from 2011 to 2019. More than 30% of teenagers who start using electronic cigarettes switch to traditional tobacco products within six months.


Currently, more than 25% of teenage e-cigarette users use their e-cigarettes every day. More than 85% of users prefer fruit flavors. Among students surveyed, 73.5% reported seeing e-cigarette content on social media.


Electronic cigarette and big tobacco companies must be held accountable for their advertising targeting young people. These dangerous products are fueling a public health crisis – especially among teenagers," said Shaheen. "Taxpayers should not foot the bill for these harmful marketing practices. That's why I am reintroducing this critical legislation, which would close a tax loophole that allows companies to write off their advertising costs and require responsibility from electronic cigarette companies.


The tax breaks for the tobacco and e-cigarette giants allowed the industry to profit from their manipulative marketing tactics. Our legislation has put an end to these loopholes, in order to protect children and other consumers from being lured into lifelong addiction," said Blumenthal. "I am proud to have worked alongside Senator Shaheen to prevent big tobacco companies from enticing the next generation.


According to federal law, television and radio advertisements for traditional tobacco products have been prohibited, and certain other forms of tobacco advertising are also restricted by the 1998 Tobacco Master Settlement Agreement. However, these restrictions do not apply to electronic cigarettes. While some television media have begun to pull electronic cigarette advertisements during broadcasts in response to the ongoing youth vaping crisis, other media are still airing these ads. To ensure equality between electronic cigarettes and traditional tobacco, the Shaheen and Blumenthal bill also prohibits tax breaks for advertising expenses related to cigarette rolling tobacco, cigars, snuff, chewing tobacco, pipe tobacco, and homemade cigarettes.


Senators Brown (D-OH), Reed (D-RI), Durbin (D-IL), and Merkley (D-OR) have also joined the ranks of sponsors for this reintroduced bill.


The full text of the legislation can be found here.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

FDA 2025 NYTS: Youth E-Cigarette Use Declines but Unauthorized Disposables Remain Prominent; Nicotine Pouch Use Stays Low
FDA 2025 NYTS: Youth E-Cigarette Use Declines but Unauthorized Disposables Remain Prominent; Nicotine Pouch Use Stays Low
The U.S. Food and Drug Administration (FDA) released its 2025 National Youth Tobacco Survey analysis, saying about 2.01 million U.S. middle and high school students currently used any tobacco product; among current youth e-cigarette users, unauthorized disposable brands including Geek Bar, Elf Bar, Lost Mary and Raz had high reported shares, potentially making them a focus for future enforcement.
Jun.24
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
The UK government has announced that HM Revenue & Customs (HMRC) will carry out more than 30,000 interventions targeting businesses and retail premises during the 2026-2027 financial year. The actions will focus on tax fraud, illegal goods sales and businesses involved in unlawful activities through retail channels. The government said illegal tobacco and illegal vape sales remain areas of concern. The move shows that UK enforcement against illegal nicotine products is expanding from import and supply channels toward retail-level oversight, alongside the upcoming introduction of the Vaping Products Duty.
Jul.24
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-listed vape company iSpire Technology has restructured its leadership team, with Tuanfang Liu becoming the company’s sole chief executive officer (CEO) and Michael Wang appointed CEO of Aspire North America. The move ends iSpire’s previous co-CEO structure and creates clearer responsibilities between group strategy and regional execution. Separately, BTIG initiated coverage on iSpire Technology with a Buy rating and a $3.50 price target, identifying ODM growth opportunities as a key investment factor.
Jul.27
Product | IQOS ILUMA i REMIX Limited Edition Launches in Japan, Bringing New Design Elements to Heated Tobacco Devices
Product | IQOS ILUMA i REMIX Limited Edition Launches in Japan, Bringing New Design Elements to Heated Tobacco Devices
Philip Morris Japan (PM Japan) has introduced the IQOS ILUMA i REMIX Limited Edition series, including the IQOS ILUMA i Prime REMIX, IQOS ILUMA i REMIX and IQOS ILUMA i ONE REMIX devices. The limited-edition models were officially announced in Japan on June 9, 2026, and began a phased market rollout from June 10. Featuring gradient color designs and visual customization elements, the collection highlights PMI’s continued use of limited editions to enhance brand experience within its heated tobacco portfolio.
Innovation
Jul.21 by 2Firsts Perspectives
Nicotine Pouches Gain Ground in U.S. Convenience Stores as Vape Unit Sales Fall 14%
Nicotine Pouches Gain Ground in U.S. Convenience Stores as Vape Unit Sales Fall 14%
According to convenience retail publication CStore Decisions, U.S. convenience store tobacco categories are undergoing a structural shift. Based on Circana OmniMarket Total U.S. Convenience data for the 52 weeks ending June 14, 2026, cigarettes remained the largest category with $50.8 billion in sales, but unit sales declined 5.3%. Electronic smoking devices and vaping products also declined, while modern oral nicotine products continued to grow, with nicotine pouch sales rising 29% in dollars and 17% in units. Retailers said changing consumer preferences are reshaping tobacco product assortments at convenience stores.
Regulations
Aug.07
Exclusive: China Tobacco Launches Locally Made MODEN FREE Nicotine Pouches in Indonesia
Exclusive: China Tobacco Launches Locally Made MODEN FREE Nicotine Pouches in Indonesia
2Firsts exclusively reports that China Tobacco Zhejiang Industrial has launched MODEN FREE nicotine pouches in Indonesia. The locally manufactured product is sold through Sixhill, a next-generation tobacco channel under CFU Group, at about $1.80 per 18-pouch can. The launch moves China Tobacco’s nicotine pouch activity beyond trade-show displays and testing into local production and public retail.
Jul.16