S.1403.IS is proposing massive increases in smokeless tobacco. The numbers are astonishing! This is outrageous! You can find your Senator at www.senate.gov
Congress lives in a vacuum and can’t see the forest through the trees. We are in a recession, the stock market is up and down and we have been downgraded by Standard and Poors (an American Company) from a AAA to AA+. The people are nervous, what we don’t need now is more taxes on legal products.
A BILL
To amend part B of the Individuals with Disabilities Education Act to provide full Federal funding of such part.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `IDEA Full Funding Act’.
SEC. 2. AMENDMENTS TO IDEA.
Section 611(i) of the Individuals with Disabilities Education Act (20 U.S.C. 1411(i)) is amended to read as follows:
`(i) Funding- For the purpose of carrying out this part, other than section 619, there are authorized to be appropriated–
`(1) $12,664,883,000 for fiscal year 2012, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $1,182,683,000 for fiscal year 2012, which shall become available for obligation on July 1, 2012, and shall remain available through September 30, 2013;
`(2) $13,988,168,000 for fiscal year 2013, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $2,505,968,000 for fiscal year 2013, which shall become available for obligation on July 1, 2013, and shall remain available through September 30, 2014;
`(3) $15,468,770,000 for fiscal year 2014, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $3,986,570,000 for fiscal year 2014, which shall become available for obligation on July 1, 2014, and shall remain available through September 30, 2015;
`(4) $17,125,392,000 for fiscal year 2015, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $5,643,192,000 for fiscal year 2015, which shall become available for obligation on July 1, 2015, and shall remain available through September 30, 2016;
`(5) $18,978,960,000 for fiscal year 2016, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $7,496,760,000 for fiscal year 2016, which shall become available for obligation on July 1, 2016, and shall remain available through September 30, 2017;
`(6) $21,052,886,000 for fiscal year 2017, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $9,570,686,000 for fiscal year 2017, which shall become available for obligation on July 1, 2017, and shall remain available through September 30, 2018;
`(7) $23,373,370,000 for fiscal year 2018, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $11,891,170,000 for fiscal year 2018, which shall become available for obligation on July 1, 2018, and shall remain available through September 30, 2019;
`(8) $25,969,721,000 for fiscal year 2019, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $14,487,521,000 for fiscal year 2019, which shall become available for obligation on July 1, 2019, and shall remain available through September 30, 2020;
`(9) $28,874,737,000 for fiscal year 2020, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $17,392,537,000 for fiscal year 2020, which shall become available for obligation on July 1, 2020, and shall remain available through September 30, 2021; and
`(10) $35,308,178,000 for fiscal year 2021, and there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, $23,825,978,000 for fiscal year 2021, which shall become available for obligation on July 1, 2021, and shall remain available through September 30, 2022.’.
SEC. 3. TOBACCO TAX INCREASE AND PARITY.
(a) Short Title- This section may be cited as the `Saving Lives by Lowering Tobacco Use Act’.
(b) Increase in Excise Tax on Small Cigars and Cigarettes-
(1) SMALL CIGARS- Section 5701(a)(1) of the Internal Revenue Code of 1986 is amended by striking `$50.33′ and inserting `$100.50′.
(2) CIGARETTES- Section 5701(b) of such Code is amended–
(A) by striking `$50.33′ in paragraph (1) and inserting `$100.50′, and
(B) by striking `$105.69′ in paragraph (2) and inserting `$211.04′.
(c) Tax Parity for Pipe Tobacco and Roll-Your-Own Tobacco-
(1) PIPE TOBACCO- Section 5701(f) of the Internal Revenue Code of 1986 is amended by striking `$2.8311 cents’ and inserting `$49.55′.
(2) ROLL-YOUR-OWN TOBACCO- Section 5701(g) of such Code is amended by striking `$24.78′ and inserting `$49.55′.
(d) Clarification of Definition of Small Cigars- Paragraphs (1) and (2) of section 5701(a) of the Internal Revenue Code of 1986 are each amended by striking `three pounds per thousand’ and inserting `four and one-half pounds per thousand’.
(e) Clarification of Definition of Cigarette- Paragraph (2) of section 5702(b) of the Internal Revenue Code of 1986 is amended by inserting before the final period the following: `, which includes any roll for smoking containing tobacco that weighs no more than four and a half pounds per thousand, unless it is wrapped in whole tobacco leaf and does not have a cellulose acetate or other cigarette-style filter’.
(f) Tax Parity for Smokeless Tobacco-
(1) IN GENERAL- Section 5701(e) of the Internal Revenue Code of 1986 is amended–
(A) in paragraph (1), by striking `$1.51′ and inserting `$26.79′;
(B) in paragraph (2), by striking `50.33 cents’ and inserting `$10.72′; and
(C) by adding at the end the following:
`(3) SMOKELESS TOBACCO SOLD IN DISCRETE SINGLE-USE UNITS- On discrete single-use units, $100.50 per each 1,000 single-use units.’.
(2) DISCRETE SINGLE-USE UNIT- Section 5702(m) of such Code is amended–
(A) in paragraph (1), by striking `or chewing tobacco’ and inserting `chewing tobacco, discrete single-use unit’;
(B) in paragraphs (2) and (3), by inserting `that is not a discrete single-use unit’ before the period in each such paragraph; and
(C) by adding at the end the following:
`(4) DISCRETE SINGLE-USE UNIT- The term `discrete single-use unit’ means any product containing tobacco that–
`(A) is intended or expected to be consumed without being combusted; and
`(B) is in the form of a lozenge, tablet, pill, pouch, dissolvable strip, or other discrete single-use or single-dose unit.’.
(3) OTHER TOBACCO PRODUCTS- Section 5701 of such Code is amended by adding at the end the following new subsection:
`(i) Other Tobacco Products- Any product not otherwise described under this section that has been determined to be a tobacco product by the Food and Drug Administration through its authorities under the Family Smoking Prevention and Control Act shall be taxed at a level of tax equivalent to the tax rate for cigarettes on an estimated per use basis as determined by the Secretary.’.
(g) Clarifying Other Tobacco Tax Definitions-
(1) TOBACCO PRODUCT DEFINITION- Section 5702(c) of the Internal Revenue Code of 1986 is amended by inserting before the period the following: `, and any other product containing tobacco that is intended or expected to be consumed’.
(2) CIGARETTE PAPER DEFINITION- Section 5702(e) of such Code is amended by striking `except tobacco,’ and inserting `or cigar (other than roll-your-own tobacco)’.
(3) CIGARETTE TUBE DEFINITION- Section 5702(f) of such Code is amended by inserting before the period `or cigars’.
(4) IMPORTER DEFINITION- Section 5702(k) of such Code is amended by inserting `or any other tobacco product’ after `cigars or cigarettes’.
(h) Inflation Adjustment- Section 5701 of the Internal Revenue Code of 1986, as amended by subsection (f)(3), is amended by adding at the end the following new subsection:
`(j) Inflation Adjustment- In the case of any calendar year after 2013, each amount set forth in this section shall be increased by an amount equal to–
`(1) such amount, multiplied by
`(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting `calendar year 2012′ for `calendar year 1992′ in subparagraph (B) thereof.’.
(i) Floor Stocks Taxes-
(1) IMPOSITION OF TAX- On tobacco products manufactured in or imported into the United States which are removed before any tax increase date and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of–
(A) the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such date, over
(B) the prior tax (if any) imposed under section 5701 of such Code on such article.
(2) CREDIT AGAINST TAX- Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on such date for which such person is liable.
(3) LIABILITY FOR TAX AND METHOD OF PAYMENT-
(A) LIABILITY FOR TAX- A person holding tobacco products on any tax increase date to which any tax imposed by paragraph (1) applies shall be liable for such tax.
(B) METHOD OF PAYMENT- The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
(C) TIME FOR PAYMENT- The tax imposed by paragraph (1) shall be paid on or before the date that is 120 days after the effective date of the tax rate increase.
(4) ARTICLES IN FOREIGN TRADE ZONES- Notwithstanding the Act of June 18, 1934 (commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.), or any other provision of law, any article which is located in a foreign trade zone on any tax increase date shall be subject to the tax imposed by paragraph (1) if–
(A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or
(B) such article is held on such date under the supervision of an officer of the United States Customs and Border Protection of the Department of Homeland Security pursuant to the 2d proviso of such section 3(a).
(5) DEFINITIONS- For purposes of this subsection–
(A) IN GENERAL- Any term used in this subsection which is also used in section 5702 of such Code shall have the same meaning as such term has in such section.
(B) TAX INCREASE DATE- The term `tax increase date’ means the effective date of any increase in any tobacco product excise tax rate pursuant to the amendments made by this section (other than subsection (g) thereof).
(C) SECRETARY- The term `Secretary’ means the Secretary of the Treasury or the Secretary’s delegate.
(6) CONTROLLED GROUPS- Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
(7) OTHER LAWS APPLICABLE- All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.
(j) Effective Date- The amendments made by this section shall apply to articles removed (as defined in section 5702(j) of the Internal Revenue Code of 1986) after December 31, 2011.
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