US Senators Jeanne Shaheen and Richard Blumenthal have reintroduced the "No Tax Subsidies for E-Cigarette and Tobacco Ads Act", which seeks to end tax provisions that allow manufacturers to claim federal tax breaks for advertising expenses related to e-cigarettes and tobacco products. Senators Brown, Reed, Durbin, Van Hollen, and Merkley have also joined the reintroduction of the bill.
The use of electronic cigarettes is exacerbating the public health crisis, especially among young people. Electronic cigarette and tobacco companies must be held responsible for intentionally promoting these dangerous products to adolescents, according to Blumenthal. "It is outrageous that tax loopholes allow companies to write off their advertising costs, leaving taxpayers to foot the bill and subsidize harmful product advertisements. That is why there is a need to enact new legislation to close this loophole and hold electronic cigarette companies accountable for their harmful marketing practices.
Old regulatory loopholes are helping big tobacco companies get more Americans addicted to deadly products, said Blumenthal. This bill will address a huge tax loophole, end big tobacco companies' tax write-offs for dangerous advertising, and prevent young people from starting deadly addictions. The bill also prohibits tax exemptions for advertising expenses related to tobacco cigarettes, cigars, snuff, chewing tobacco, pipe tobacco, and hand-rolled cigarettes.
According to 2FIRSTS, all of the aforementioned US senators are members of the Democratic Party. Previously, Democratic-led states (also known as "blue states") have implemented other measures to counteract e-cigarettes, such as California's flavor ban.
Read more: Resilience Amidst Tightening Regulations - the State of the US E-cigarette Industry Under Bipartisan Competition.
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