A proposal by congressional Democrats to increase federal cigarette and cigar taxes, while introducing new vape levies, would not break President Joe Biden’s promise not to raise taxes on households earning less than $400,000 a year, according to the White House.
Press secretary Jen Psaki was quick to dismiss questions that the floated revenue stream, which some Democrats claim could raise more than $100 billion over the next decade, would violate Biden’s tax hike pledge.
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“No, we don’t,” she told reporters Wednesday.
Psaki declined to say whether the White House supported the idea, instead repeating that it was not an administration pitch. She also distinguished it from a gas or miles traveled tax because public health guidance advises against smoking.
“So that’s not something that we think falls into the same category,” she said.
Psaki attempted to project Biden’s confidence from the podium, saying he was “encouraged” by Democratic progress with negotiations regarding their $3.5 trillion partisan reconciliation package. The measure is expected to pass sweeping social welfare and climate reforms, including universal prekindergarten and tax credits for being environmentally friendly, if liberal and centrist Democrats can agree on its provisions and price tag.
Psaki expressed the White House’s hope that the reconciliation plan and its climate initiatives will “move forward” before Biden flies to Glasgow in November for the United Nations Climate Change Summit. But when pressed on the timeline, she did not specify a deadline.
Biden is turning his attention to his legislative agenda after his chaotic Afghanistan withdrawal and this week’s California gubernatorial recall election. Centrist Democrats in the House and Senate are insisting the president’s priorities, minus most of his climate programs, be fully paid for.
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Biden is meeting with centrist Democratic Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona on Wednesday at the White House.
