[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2534 Introduced in House (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.

                                 <all>