Durbin, Wyden, Kishnamoorthi Introduce Legislation To Reduce Tobacco Use In America
The End Tobacco Loopholes Act would establish a new federal e-cigarette tax, increase tobacco tax rate, & close tax loopholes
WASHINGTON—U.S. Senate Democratic Whip Dick Durbin (D-IL), U.S. Senator Ron Wyden (D-OR), U.S. Representative Raja Krishnamoothi (D-IL-08), and several Senate Democratic colleagues today introduced the End Tobacco Loopholes Act, legislation that would close tax code loopholes for tobacco products to lower tobacco use and reduce health care spending. The legislation would establish a federal tax on e-cigarettes as 30 states have done, update the federal cigarette tax rate for the first time in more than 15 years to restore its public health impact, and harmonize the tax rate across tobacco products to address gamesmanship by manufacturers. Increasing the price of tobacco products has been found to be the single most effective way to reduce tobacco use, particularly among children.
“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,” 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,” 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.”
“Big Tobacco has systematically targeted Americans and their children with advertising for decades, first with cigarettes, now with e-cigarettes and vaping products,” 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.”
Joining Durbin, Wyden, and Krishnamoorthi in introducing today’s bill are U.S. Senators Patty Murray (D-WA), Jack Reed (D-RI), Jeff Merkley (D-OR), Richard Blumenthal (D-CT), and Ed Markey (D-MA).
The End Tobacco Loopholes Act would close tax code loopholes for tobacco products by increasing the federal tax rate on cigarettes, pegging it to inflation to ensure it remains an effective public health tool, and setting the federal tax rate for all other tobacco products at this same level. While e-cigarettes are the most commonly used tobacco product among youth, and are now subject to the full regulatory framework of the Food and Drug Administration’s (FDA) Premarket Tobacco Product Applications, they are not subject to federal taxes—which has created an effective price discount that has contributed to the explosion of youth use of e-cigarettes. The End Tobacco Loopholes Act would follow the lead of 30 states and Washington, D.C. that have set their own state taxes, by setting a federal tax on these vaping products. The legislation also closes numerous tax and regulatory loopholes that the tobacco industry has exploited for large cigars, smokeless tobacco, and pipe tobacco by shifting production and sale schemes to avoid taxes and oversight, resulting in nearly $4 billion in lost federal revenue between 2009 and 2018. In addition, large cigars, smokeless tobacco, and pipe tobacco remain dramatically undertaxed compared to cigarettes, at a time when their use—especially among youth—is trending at a comparable rate to cigarettes.
Tobacco is the leading cause of preventable death, annually accounting for 480,000 deaths—or 1 out of every 5 deaths—in America. Nearly one-third of the middle and high school students using tobacco products use two or more tobacco products. Tobacco use costs more than $600 billion a year, including $241 billion in direct medical care, 60 percent of which is paid through government programs such as Medicare and Medicaid, and $365 billion in lost productivity.
The Institute of Medicine, U.S. Surgeon General, and World Health Organization have determined that increasing the price of tobacco products is the single most effective way to reduce tobacco use, with studies showing a 10 percent cigarette price increase results in a three-five percent reduction in consumption.
The End Tobacco Loopholes Act of 2025 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.
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