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===2021 (Revision): [https://www.nber.org/system/files/working_papers/w26724/w26724.pdf The Effects of E-Cigarette Taxes on E-Cigarette Prices and Tobacco Product Sales: Evidence from Retail Panel Data]=== | |||
*Cigarettes continue to kill nearly 480,000 Americans each year, and several reviews support the conclusion that e-cigarettes contain fewer toxicants and are safer for non-pregnant adults than cigarettes. Our results suggest that e-cigarettes are elastic goods and their use substantially reduces cigarette sales. | |||
*Despite potentially detrimental unintended consequences of e-cigarette taxes, between the end of our study period (December 2017) and December 2020, 20 additional states enacted e-cigarette taxes, bringing the total to 28. | |||
*We find robust evidence that e-cigarette taxes are over-shifted to consumers. Our results here suggest that state-level e-cigarette taxes are passed through to prices at a higher level than e-cigarette taxes enacted at the sub-state level. | |||
*Here, a 1% increase in cigarette taxes reduces cigarette sales '''while a 1% increase in e-cigarette taxes increases cigarette sales'''. | |||
*In late February 2020, the U.S. House of Representatives approved a national e-cigarette tax proportional to the federal cigarette tax (House Bill 2339 2020). The bill specifies a tax rate of $50.33 per 1,810 milligrams of nicotine (or $0.028 per milligram). JUUL pods at the time of writing contain 59 milligrams/ml (at 5% nicotine volume). Assuming this conversion, we simulate that, if this bill were to become law, the tax could raise e-cigarette prices by $2.36 per ml ($0.0278 x 59 x 1.44 using Table 3), would reduce NRSD e-cigarette purchases by 1,784 ml per 100,000 adults , and would increase NRSD cigarette pack purchases by 26,736 packs per 100,000 adults. Our rate of substitution would be halved when compensating for the NRSD capturing roughly twice the share of cigarette sales than e-cigarette sales, which brings us to a substitution rate of one pod = 7.5 packs. | |||
*A limitation of our study is the reliance on e-cigarettes sold through retail stores, so we cannot capture e-cigarettes sold through specialty vape shops and online. However, e-cigarette taxes are collected for both online and vape shop purchases in the same way they are collected in retail stores, so we are unaware of any financial incentive to change shopping venue in response to an e-cigarette tax. | |||
===2019: [https://www.nber.org/system/files/working_papers/w26017/w26017.pdf The Effects Of Traditional Cigarette And E-Cigarette Taxes On Adult Tobacco Product Use]=== | |||
*We find evidence that adults are more likely to use e-cigarettes when traditional cigarette taxes rise. | |||
*Traditional cigarette taxes appear to be less effective – in terms of reducing smoking – when a locality has also adopted an e-cigarette tax. | |||
*This finding suggests that the combination of a traditional cigarette tax hike and e-cigarette tax prevents smokers for either quitting or switching to a less harmful product, both actions would improve smoker health by minimizing exposure to carcinogens and other toxins contained in traditional cigarettes. | |||
*Our research contributes further evidence from differences-in-differences methods that regulating e-cigarettes have the unintended consequence of raising traditional cigarette use; while neither product is harmless, the clinical literature strongly suggests that e-cigarettes are the less harmful product. These results suggest caution in regulating e-cigarettes because they may increase smoking of traditional cigarettes. | |||
===2019: [http://web.archive.org/web/20200804120404/https://vaportechnology.org/wp-content/uploads/2019/09/Vapor-Industry-Economic-Impact-Study-by-Dunham-Associates-2019-Updated.pdf The Vapor industry Economic Impact Study]=== | |||
*The vapor industry is a dynamic part of the U.S. economy, accounting for about $24.46 billion in output or about 0.14 percent of GDP. It employs approximately 166,007 Americans who earned wages and benefits of about $7.90 billion. | |||
*Members of the industry and their employees paid $3.31 billion in federal, state and local taxes. This does not include state and local sales taxes or excise taxes that may apply for specific retail purchases which are estimated to total $1.67 billion. | |||
*[https://vaportechnology.org/wp-content/uploads/2019/09/Vapor-Industry-Economic-Impact-Study-by-Dunham-Associates-2019-Updated.pdf Original link to the study] | |||
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='''Videos'''= | ='''Videos'''= | ||
===2019: CBS News: [https://www.youtube.com/watch?v=Idx0bnoTq3g E-cigarette tax could deter smokers from quitting, study says]=== | |||
*Economists say that imposing a federal tax on vaping could discourage millions of smokers from kicking the habit. | |||
='''Blogs'''= | ='''Blogs'''= | ||
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*[https://www.ecigarettedirect.co.uk/james-dunworth-bio By James Dunworth] | *[https://www.ecigarettedirect.co.uk/james-dunworth-bio By James Dunworth] | ||
*Could billions of dollars in tobacco taxes be one of the factors behind the attack on a disruptive industry? | *Could billions of dollars in tobacco taxes be one of the factors behind the attack on a disruptive industry? | ||
===[https://www.thr101.org/search-results/q-Taxes/qc-blogs Taxes on THR101]=== | |||
*Several posts on vaping and taxes | |||
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