House Democrats want to hike taxes on tobacco and nicotine products to fund their USD 3.5 trillion spending plan, despite President Biden’s not to raise taxes for people earning less than USD 400,000 per year, reports CNBC.

The proposed tax increase would see the current levies on cigarettes, cigars, RYO and smokeless tobacco products raised as well as new taxes levied on vaping products. According to CNBC, estimates from the nonpartisan Joint Committee on Taxation show that the tax increases could bring in over USD 96 billion in revenue over the next decade.
Health advocates are in favour of the plan however, others claim it is in direct violation with President Biden’s promise not to increase taxes for those earning less than USD 400,000 a year, reports CNBC.
“A tobacco tax is probably the most regressive tax out there,” said Ulrik Boesen, senior policy analyst of excise taxes at the Tax Foundation. “There’s no question that it’s a tax on people earning less than USD 400,000.”