Democratic members of the U.S. Senate have proposed a new federal bill to set a tax on e-cigarettes as the death count tied to vaping increased.
U.S. Senate Democratic Whip Dick Durbin, D-Ill., and eight of his colleagues in the Senate introduced the Tobacco Tax Equity Act on Sept. 19.
The Senate bill would establish the first federal e-cigarettes tax and increase the tobacco tax rate for the first time in a decade, according to a press release from Durbin's office.
The Tobacco Tax Equity Act would also close loopholes in the tax code that, according to Durbin's office, are used by the tobacco industry to avoid regulation and taxes. Federal revenue lost between 2009 and 2014 because of tax and regulatory loopholes for the tobacco industry was nearly $4 billion, Durbin's office said.
The Senate bill would double the federal tax rate on cigarettes and use the same rate for a federal tax on all other tobacco products, including e-cigarettes. The rate would be tied to inflation.
There are 17 states with taxes on e-cigarettes, but there is no federal tax rate on them, Durbin's office said.
Juul Labs Inc., the dominant e-cigarette player in the U.S., did not immediately respond to a request for comment.
The Senate bill joins a number of regulatory measures aimed at Juul and combating youth vaping. A congressional subcommittee threatened Juul with a subpoena if the company does not hand over documents related to its marketing tactics, and the Trump Administration has plans to ban non-tobacco-flavored vaping products.
The pressure on the vaping industry intensified as seven deaths across six states and 530 cases of lung injury from 38 states and one U.S. territory were associated with vaping, according to the Centers for Disease Control and Prevention.
Public health officials in Canada announced Sept. 18 a case in the London, Ontario area of a young person with severe pulmonary illness linked to vaping.
