Hurricanes Helene and Milton have devastated North Carolina and Florida. This will be a very expensive clean up. Yesterday, the Taxpayers Protection Alliance (TPA) called on Congress to include a waiver for Davis-Bacon Act and Buy American requirements in any disaster relief package. In the best of times, the Davis-Bacon Act and Buy American provisions are ill-conceived sops to labor unions and protectionist special interests. They make using federal funds more expensive and more difficult. In light of the pressing need for speedy disaster relief, Congress should immediately suspend these and all similar requirements that put the interests of hurricane-affected Americans behind those of corporate lobbyists and Big Labor. Congress should also set aside special funding for the Federal Emergency Management Agency Inspector General (IG) in any disaster-relief funding bill. It is important to move with speed, but this doesn’t mean that taxpayer funds should be dispensed without accountability.
The very bolstering of the IG will discourage unsavory characters from attempting to take financial advantage of the chaos and confusion that exists in every disaster area. TPA once again sends its heartfelt thoughts to those affected by Hurricanes Helene and Milton and calls on Congress to take the proper steps to respond in a timely, effective, and responsible manner.

Stop the Zyn-sanity

Despite ongoing public health efforts, the increase in youth use of oral nicotine products does not mirror the surge seen in e-cigarette usage. Yet, the anti-Zyn campaign continues aggressively, potentially depriving millions of American smokers of safer alternatives and access to public health innovations that have significantly reduced smoking rates elsewhere. The Centers for Disease Control and Prevention's recent "Notes from the Field" in the 2024 National Youth Tobacco Survey (NYTS) revealed findings on youth use of e-cigarettes and nicotine pouches, although full data on traditional tobacco use is pending. While youth vaping has declined, the use of nicotine pouches, including brands like Zyn and On!, has risen slightly. Still, only 1.8 percent of U.S. middle and high school students reported using oral nicotine products in 2024 – up from 1.5 percent in 2023 but far below the 5.9 percent who were vaping. In fact, the percentage of U.S. youth using oral nicotine products in 2024 was
106.5 percent less than the number of youth who were vaping. In contrast, 22 percent of U.S. high school students reported drinking alcohol in 2023, and yet, nobody is talking about banning alcohol, which is more dangerous for teenagers.

Despite these figures, public health trade associations are vilifying the use of modern oral tobacco products despite them being significantly less harmful than combustible cigarettes. A July 31 blog post titled “ZYN 101: What to Know About Big Tobacco’s Latest Addiction,” by the American Lung Association (ALA), exemplifies this by amplifying fears and downplaying the reduced risk of oral nicotine products compared to cigarettes. In a September press release responding to the 2024 National Youth Tobacco Survey data, the ALA labeled the “presence” of new products as “alarming,” yet failed to mention that less than 2 percent of youth used oral nicotine products this year. The release also focused narrowly on Zyn products, despite the availability of numerous other nicotine pouch options.

Policymakers are also targeting nicotine pouches. A U.S. Senator has called for federal crackdowns and that “these nicotine pouches seem to lock their sights on young kids … and use the social media to hook them.” Similarly, Canada’s Health Minister recently inaccurately described nicotine pouches are a new loophole designed to hook children. Policymakers should closely monitor the use of oral nicotine among youth, but also consider the potential for alarmist public health campaigns to inadvertently increase youth interest in these products. This pattern is not unprecedented. In 2018, 12.9 percent of U.S. middle and high school students reported using e-cigarettes in the past month. Following alarmist declarations of an “e-cigarette epidemic” by the U.S. Food and Drug Administration and then-U.S. Surgeon General Jerome Adams, this figured surged to 20 percent in 2019, before declining to 13.1 percent in 2020 and 5.9 percent in 2024. These declines have occurred even while U.S. sales of
e-cigarettes significantly increased. More concerning is that the ALA’s focus on oral nicotine products like Zyn is undermining the science behind tobacco harm reduction. Decades of research have shown that the smoke from combustible tobacco is the primary cause of smoking-related harm, not nicotine. Nicotine, when used outside of combustible tobacco, poses significantly less risks to adults. Tobacco harm reduction products (including nicotine pouches) provide adults with nicotine without the harms associated with smoking.

While products like Zyn are relatively new, snus (a smokeless tobacco product that shares similarities with nicotine pouches) has been on the market for years and has helped people quite combustible cigarettes. The primary difference is that snus contains tobacco leaves, whereas oral nicotine products do not. Both deliver nicotine through a pouch placed in the mouth, but their health impact is significantly less severe than smoking. Snus originated in the early 18th century in the form of moist snuff and was originally sold in loose form for the user to mold into a ball. In Sweden, pre-portioned miniature-sized teabag-like pouches were developed in 1973 and are now the predominant form of the product. Despite a European Union (EU) ban on snus since 1992, Sweden secured an exemption upon joining the EU. Currently, Sweden has the lowest smoking rate in Europe, with only 6 percent of the population reporting daily cigarette use in 2021. Swedish men, who have the highest rates of smokeless
tobacco use and the lowest rates of cigarette use, also experience the lowest incidence of lung cancer and smoking-related diseases in Europe. Oral nicotine products such as snus and nicotine pouches could help move the United States in the same direction by both reducing smoking rates among current cigarette users and providing a safer alternative for those who may otherwise start smoking. Public health initiatives should focus on minimizing the harm caused by tobacco use, rather than striving for an unrealistic goal of zero tobacco use. Rather than espousing alarmist fears about a significantly less harmful nicotine product, the ALA should refocus its efforts on combatting the real threat to lung health: combustible cigarettes.

The IRS's Dangerous Dance With Political Vendettas

Revelations that former Internal Revenue Service (IRS) official, Lois Lerner had conservative and libertarian groups singled out for scrutiny was a dark day. Sadly, political targeting continues at the IRS, despite Lerner being long gone from the agency. The Treasury Department and the IRS are brazenly re-writing the tax code through rulemakings that would allow the administration to confiscate the wealth of their perceived political opponents. These rulemakings also defy existing law and court precedents. Earlier in the Biden administration, politicians claimed they could raise revenue for the Treasury by funding the IRS to supposedly go after “tax cheats.” When House Democrats were considering the Build Back Better Act (BBBA), Treasury Secretary Janet Yellen wrote a letter of “enthusiastic support” for the funding, claiming the funding would produce a four-fold return on investment. In July 2022, when the Inflation Reduction Act (IRA) passed, Majority Leader Chuck Schumer credited to
the IRA roughly $125 billion of deficit reduction from “IRS Tax Enforcement.” However, the Department of Treasury’s talking points on the matter reflected those of a partisan political campaign, rather than that of an unbiased government agency. According to Deputy Assistant Secretary for Economic Policy, Natasha Sarin, the IRS funding comprised “a set of revenue raisers that will ask the wealthy… to pay their fair share.”

This biased language informs understanding of the current rulemakings. The rules purport to go after “basis-shifting transactions.” This is when a business sells an asset to a third-party. Once that transaction is completed, the “basis” for which that asset is taxed is changed. IRS and Treasury are seeking to outlaw such transactions based on a subjective definition of “partnership.” These regulations disregard the plain meaning of the tax laws passed by the Congress. According to multinational law firm, Holland and Knight, “Though many basis-shifting transaction comply with the literal requirements of [the law], the IRS believes that such transactions have been inappropriately utilized.” In other words, though these transactions are legal, the IRS plans to subjectively attack businesses nonetheless. Any action to change the law must come from Congress. The Supreme Court affirmed as much in its recent case, Loper Bright Enterprises v. Raimondo. Further, Sen. Ron Wyden (D-Ore.) described
it as “legislative malpractice” if the solution came from the bureaucracy rather than Congress.

While the IRS claims it can circumvent the written law, virtually every other observer says otherwise. Given the vagueness of what the IRS may consider “inappropriate,” it is more than likely that enforcement will be just as subjective. This, once again, opens the door for the administration to target its political opponents. This is far from hypothetical. Charles Littlejohn, the IRS contractor, got off with a slap on the wrist for illegally leaking sensitive tax documents. Perhaps, he was able to do so, as the Department of Justice described his victims as “thousands of the nation’s wealthiest individuals” to news outlets. The judge who oversaw the case correctly described the Littlejohn’s targeted and politically motivated attack on wealthy taxpayers as “an attack against the US and its legal foundation.” Judge Reyes later expressed shock that the DOJ did not have the will to appropriately prosecute the crime. The IRS’s recent moves to initiate enforcement actions against perfectly
legal transactions sheds light on why Littlejohn was spared for something blatantly illegal. This is more about advancing a partisan agenda than faithfully enforcing the law. At a tax event, Clifford Warren, an IRS official, described the people who would be hit hardest by the rules. He said ([link removed]) it would be those “trying to make basis great again.” If Warren’s wording sounds a little too on the nose, it is.

Today’s bureaucrats have made it abundantly clear they plan to exploit whatever vagaries they may see in the law to go after political opponents. However, there is a reason they exist in the “executive” branch of government. They are tasked with executing the law. It may not be what they wish it to be, but any deviation from the current letter of the law is a usurpation of Congress’s legislative authority. As such, Congress has a duty to conduct rigorous oversight of this illegal harassment of American companies conducting their own affairs.


BLOGS:

Monday: The IRS’s Dangerous Dance with Political Vendettas ([link removed])

Tuesday: Spurious Antitrust Suits Will Harm American Innovation ([link removed])

Thursday: Foreign Hack of Broadband Networks Reinforces the Importance of Strong Cybersecurity ([link removed])

Friday: A Tax on Unrealized Gains Would be a Disaster ([link removed])


Media:

October 4, 2024: WBFF Fox45 Baltimore (Baltimore, Md.) quoted me in their article, “Baltimore wants voters to approve reparations fund against advice of its own equity office.”

October 4, 2024: The Baltimore Post (Baltimore, Md.) quoted me in their article, “FOX45: Baltimore wants voters to approve reparations fund against advice of its own equity office.”

October 7, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me about the Baltimore County ballot measure that would make the County Inspector General permanent.

October 7, 2024: Inside Sources ran TPA’s op-ed, “Virginia’s Bold Broadband Move.”

October 7, 2024: Townhall ran TPA’s op-ed, “Why the American Lung Association’s Anti-Zyn Campaign Risks Harming Public Health Efforts.”

October 7, 2024: Black Chronicle (Oklahoma City, Ok.) mentioned TPA in their article, “Subsidizing the rich in Cape Cod’s broadband push.”

October 8, 2024: RealClear Markets ran TPA’s op-ed, “The IRS's Dangerous Dance With Political Vendettas.”

October 8, 2024: The Center Square ran TPA’s op-ed, “Subsidizing the Rich in Cape Cod’s Broadband Push.”

October 8, 2024: The Iowa Standard ran TPA’s op-ed, “Fort Dodge Government-Owned Broadband Continues to Cost Iowa City’s Taxpayers.”

October 9, 2024: Prescott eNews (Prescott, Ariz.) ran TPA’s op-ed, “Virginia’s Bold Broadband Move.”

October 10, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on FEMA and ways the federal government can help rebuild while protecting taxpayer dollars.

October 10, 2024: The Florida Record (Tallahassee, Fla.) quoted me in their article, “Lawsuit Abuse Awareness Week highlights continuing economic impact of excess litigation in Florida.”

October 10, 2024: The Washington Reporter quoted Juan in their article, "Lina Khan becomes a growing political liability for the administration."

Have a great weekend!

Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 500
Washington, D.C. xxxxxx

============================================================
** ([link removed])
** Like Us On Facebook ([link removed])
** ([link removed])
** Follow Us On Twitter ([link removed])
Our mailing address is:
1101 14th Street NW
Suite 1120
Washington, DC xxxxxx

Want to change how you receive these emails?
You can ** update your preferences ([link removed])
or ** unsubscribe from this list ([link removed])