House Republicans have announced an investigation into the Biden administration’s proposed ban on menthol cigarettes, citing concerns about its potential impact on small businesses and the creation of illicit markets.
The letter, directed by House Small Business Committee Chairman Roger Williams and Representative Dan Meuser, expresses reservations about the proposed regulation and raises questions about the rulemaking process. They urge the administration to consider the significant economic impact on small entities and the potential to fuel illicit markets that would result from such a ban.
President Williams says the Biden administration’s proposal would disproportionately hurt small businesses across the country. He stresses that banning menthol cigarettes would lead to billions of dollars in lost sales at convenience stores and create a black market for these products. He urges the administration to reject this rule and allow small businesses to operate without government interference.
The proposed ban has drawn widespread opposition from several groups, including the National Association of Convenience Stores (NACS) and the United States Hispanic Business Council (USHBC). According to NACS, the rule would substantially reduce the sales of convenience stores across the country, jeopardizing their viability. The USHBC warns that a ban would dismantle a significant part of the economy, as convenience stores rely on these products for a significant portion of their sales.
The tobacco industry as a whole supports more than 600,000 jobs and contributes billions of dollars in wages and tax revenue. Critics argue that the ban would create an illegal market, benefiting Mexican cartels and depriving local governments of valuable tax revenue.
Although the FDA maintains that the proposed rules are intended to reduce illness and death from the use of tobacco products, opponents argue that the ban has never worked and that the ban would disproportionately affect minority communities.
The proposed federal ban on menthol cigarettes has sparked intense debate, with lawmakers and organizations on both sides of the aisle voicing their concerns and support. The decision by House Republicans to investigate the Biden administration’s proposal adds more uncertainty to the future of menthol cigarettes in the United States.
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