< Back to H.R. 2534 (103rd Congress, 1993–1994)

Text of the Tobacco Advertising Subsidies and Health Enhancement Strategies Act

This bill was introduced on June 28, 1993, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 28, 1993 (Introduced).

Source: GPO

HR 2534 IH

103d CONGRESS

1st Session

H. R. 2534

To amend the Internal Revenue Code of 1986 to disallow the deduction for advertising or other promotion expenses with respect to sales of tobacco products.

IN THE HOUSE OF REPRESENTATIVES

June 28, 1993

Mr. HUFFINGTON (for himself, Mr. ANDREWS of Texas, Mr. CONYERS, Mr. DURBIN, Mr. FRANK of Massachusetts, Mr. HANSEN, Mr. STARK, Mr. TRAFICANT, and Mr. WYDEN) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to disallow the deduction for advertising or other promotion expenses with respect to sales of tobacco products.

    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 ‘Tobacco Advertising Subsidies and Health Enhancement Strategies Act’.

SEC. 2. DISALLOWANCE OF DEDUCTION FOR TOBACCO PRODUCT SALES PROMOTION EXPENSES.

    (a) GENERAL RULE- Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items not deductible) is amended by adding at the end thereof the following new section:

‘SEC. 280I. TOBACCO PRODUCT SALES PROMOTION EXPENSES.

    ‘(a) GENERAL RULE- No deduction shall be allowed under this chapter for any tobacco product sale promotion expense.

    ‘(b) TOBACCO PRODUCT SALE PROMOTION EXPENSE- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘tobacco product sale promotion expense’ means any amount otherwise allowable as a deduction under this chapter with respect to--

        ‘(A) any advertisement primarily for purposes of promoting the sale of tobacco products, or

        ‘(B) any of the following incurred or provided primarily for purposes described in subparagraph (A)--

          ‘(i) travel expenses (including meals and lodging),

          ‘(ii) any amount attributable to goods or services of a type generally considered to constitute entertainment, amusement, or recreation or to the use of a facility in connection with the providing of such goods or services,

          ‘(iii) gifts, or

          ‘(iv) other promotion expenses.

      ‘(2) TOBACCO PRODUCTS- The term ‘tobacco products’ has the meaning given to such term by section 5702(c).

    ‘(c) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary to carry out the purpose of this section.’

    (b) CLERICAL AMENDMENT- The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end thereof the following new item:

‘Sec. 280I. Tobacco product sales promotion expenses.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act in taxable years ending after such date.

SEC. 3. ADDITIONAL REVENUES TO BE USED FOR DEFICIT REDUCTION.

    Any additional revenues received in the Treasury by reason of the amendments made by section 2--

      (1) shall be used for deficit reduction purposes, and

      (2) shall not be considered for any purpose under the Balanced Budget and Emergency Deficit Control Act of 1985.