One Big Beautiful Bill and its Impact on You
by Premium Cigar Association | Jul 9, 2025 | Feature
The “One Big Beautiful Bill Act” (H.R.1, 119th Congress) presents several significant implications for Premium Cigar Association (PCA) members and the broader premium cigar industry. This Act introduces important policy shifts that provide both immediate benefits and notable challenges to premium cigar retailers.
On the positive side, PCA members will see immediate advantages from a temporary regulatory freeze on new FDA and HHS rules. This provides retailers with temporary relief from new compliance burdens, enhancing short-term operational stability. Additionally, the Act significantly increases the small business tax deduction on qualified business income from 20% to 23%. This improvement directly benefits small and family-owned cigar retailers by lowering their overall tax liability, allowing more resources to be invested back into their businesses. Another beneficial provision is the temporary elimination of federal taxes on tips and overtime wages through 2028, which will particularly benefit cigar lounges and establishments with tipped employees, boosting employee earnings and potentially improving staff retention. The stable labor regulations included in the Act also contribute to a predictable business environment, allowing PCA members to confidently plan their operations.
Additionally, enhanced immigration enforcement and the introduction of a 3.5% remittance tax on international money transfers could indirectly affect labor availability, particularly in regions dependent on immigrant labor. This measure may lead to a tighter labor market and could impose upward pressure on wages, presenting staffing challenges for manufacturers.
In summary, while the Act provides meaningful short-term benefits, it also necessitates proactive management of new challenges. Strategic advocacy, ongoing economic analysis, and member education will be key in leveraging the opportunities and mitigating potential risks posed by these legislative changes.
– Article contributed by the PCA Government Affairs team.
