ENDS Taxes: Difference between revisions

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===2021: Article: [https://news.gsu.edu/2021/08/30/taxing-tobacco-and-e-cigarettes-at-same-rate-will-harm-young-users-new-study-finds/ Taxing Tobacco and E-Cigarettes at Same Rate Will Harm Young Users, New Study Finds]===
*A National Institutes of Health-funded study by nine health economists, including Georgia State University’s Michael Pesko, suggests the Tobacco Tax Equity Act of 2021 before Congress may not benefit public health – particularly among youth – because it is likely to induce substitution towards more lethal combustible tobacco products.


===2021: [https://filtermag.org/vape-taxes-increase-smoking/?fbclid=IwAR1-XO6IuZI2l4ydWqGZc99smyG8xX4DuP3X29PWBTSoEWBfw_BB0r1zlcc To Increase Smoking Rates Among Young Adults, Keep Hiking Vape Taxes]=== <!--T:42-->
===2021: [https://filtermag.org/vape-taxes-increase-smoking/?fbclid=IwAR1-XO6IuZI2l4ydWqGZc99smyG8xX4DuP3X29PWBTSoEWBfw_BB0r1zlcc To Increase Smoking Rates Among Young Adults, Keep Hiking Vape Taxes]=== <!--T:42-->
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**California had a 34 percent increase in people aged 18-24 who smoked after the passage of an e-cigarette tax. Deleware's increase was 48.6 percent. Pennsylvania passed a 40% wholesale tax on vapor products, which closed 1/3 of the vape shops in that state and increased smoking in the 18-24 year old age group by 19 percent. Kansas, Louisiana, Minnesota and West Virginia also say increases in smoking in young adults after passing taxes on vapor products.
**California had a 34 percent increase in people aged 18-24 who smoked after the passage of an e-cigarette tax. Deleware's increase was 48.6 percent. Pennsylvania passed a 40% wholesale tax on vapor products, which closed 1/3 of the vape shops in that state and increased smoking in the 18-24 year old age group by 19 percent. Kansas, Louisiana, Minnesota and West Virginia also say increases in smoking in young adults after passing taxes on vapor products.
*Peer-reviewed studies have found that high taxation rates on e-cigarettes increase smoking and/or prevent adult smokers from transitioning to less harmful alternatives.
*Peer-reviewed studies have found that high taxation rates on e-cigarettes increase smoking and/or prevent adult smokers from transitioning to less harmful alternatives.




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*New York State’s 20 percent excise tax on vapor products and nearly 9 percent sales tax also do not apply to the Shinnecock and other tribes. Essentially, Silva said, patrons can spend almost 30 percent less than they normally spend, and nobody has to worry about breaking the law.
*New York State’s 20 percent excise tax on vapor products and nearly 9 percent sales tax also do not apply to the Shinnecock and other tribes. Essentially, Silva said, patrons can spend almost 30 percent less than they normally spend, and nobody has to worry about breaking the law.




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*Using data from 35,000 national retailers from 2011 to 2017, researchers found that for every 10% increase in e-cigarette prices, e-cigarette sales dropped 26%. But the same 10% increase in e-cigarette prices caused traditional cigarette sales to jump by 11%.
*Using data from 35,000 national retailers from 2011 to 2017, researchers found that for every 10% increase in e-cigarette prices, e-cigarette sales dropped 26%. But the same 10% increase in e-cigarette prices caused traditional cigarette sales to jump by 11%.




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*With all good intentions to reduce the underage use of a product designed for adults, the question remains: Is increasing excise taxes to punitive levels the best way to achieve this honorable target? Punitive excise levels not only impact minors but also limit the availability of vapor products to adults, who are trying to quit smoking.
*With all good intentions to reduce the underage use of a product designed for adults, the question remains: Is increasing excise taxes to punitive levels the best way to achieve this honorable target? Punitive excise levels not only impact minors but also limit the availability of vapor products to adults, who are trying to quit smoking.
*It is a principle of good taxation policy that taxes remain as neutral as possible. That means taxes should neither encourage nor discourage personal or business decisions. Legislators should pass regulations rather than adopt taxes to achieve regulatory goals. Furthermore, they should make sure that current regulations are enforced.
*It is a principle of good taxation policy that taxes remain as neutral as possible. That means taxes should neither encourage nor discourage personal or business decisions. Legislators should pass regulations rather than adopt taxes to achieve regulatory goals. Furthermore, they should make sure that current regulations are enforced.




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*With the growing appeal of e-cigarettes and legalized recreational marijuana, lawmakers are looking to both as a source of revenue to ease long-term budget challenges. Although both products offer fresh sources of funds, lawmakers would benefit from taking a cautious approach to them. Uncertainties, including long-term consumption trends and shifts in the black market, make returns difficult to forecast. As with tobacco, alcohol, and gambling taxes, new levies on marijuana and e-cigarettes may provide short-term revenue gains. Their ability to be sustainable long-term revenue sources capable of funding ongoing expenditures, however, is unclear.
*With the growing appeal of e-cigarettes and legalized recreational marijuana, lawmakers are looking to both as a source of revenue to ease long-term budget challenges. Although both products offer fresh sources of funds, lawmakers would benefit from taking a cautious approach to them. Uncertainties, including long-term consumption trends and shifts in the black market, make returns difficult to forecast. As with tobacco, alcohol, and gambling taxes, new levies on marijuana and e-cigarettes may provide short-term revenue gains. Their ability to be sustainable long-term revenue sources capable of funding ongoing expenditures, however, is unclear.
*State regulations have already had significant effects on suppliers. In Pennsylvania, for example, more than 100 shops have closed since a tax—40 percent of wholesale value—went into effect in October 2016. Wide disparities in state tax rates probably incentivize smuggling and tax evasion; high tax rates could fuel a black market.
*State regulations have already had significant effects on suppliers. In Pennsylvania, for example, more than 100 shops have closed since a tax—40 percent of wholesale value—went into effect in October 2016. Wide disparities in state tax rates probably incentivize smuggling and tax evasion; high tax rates could fuel a black market.




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*Cigarette taxes are regressive: that is, low- and middle-income taxpayers pay more of their income in these taxes, on average, than do upper-income families.  
*Cigarette taxes are regressive: that is, low- and middle-income taxpayers pay more of their income in these taxes, on average, than do upper-income families.  
*If a state is relying on the revenue from the tax to fund programs or supplement a state budget, however, it is important to note that the revenues raised by cigarette taxes are unlikely to be sustainable in the long-run, and that their impact will fall disproportionately on lower-income individuals.
*If a state is relying on the revenue from the tax to fund programs or supplement a state budget, however, it is important to note that the revenues raised by cigarette taxes are unlikely to be sustainable in the long-run, and that their impact will fall disproportionately on lower-income individuals.


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