Showing posts with label taxation. Show all posts
Showing posts with label taxation. Show all posts

Friday, March 7, 2014

Washington State Mulling 75% Tax on E-Cigs

Democrat Reuven Carlyle (D) has introduced a bill to the Washington state legislature which would levy a 75% on e-cigarettes and other tobacco substitutes.


The original version of the bill called for a 95% tax, but a revision which passed through the House Finance Committee with a 7-6 vote lowered the proposed rate to 75%.


Bill 2795 would exempt e-cigarettes prescribed by doctors, but only if, and after, the FDA rules electronic cigarettes to be a smoking cessation aid.


Carlyle says the purpose of the bill is to “equalize taxes and mitigate negative effects,” despite the fact that negative health effects from electronic cigarettes have yet to be proven, and there is no logical reason why electronic cigarettes should have taxes “equalized” with cigarettes made from tobacco.


“An important part of the objective is to equalize taxes and mitigate negative effects of the product.”

–Rep. Reuven Carlisle


Presumably, the taxes on cigarettes are justified in large part due to the burden placed on taxpayers by the adverse effects of smoking. E-cigarettes have no such ill effects. By way of comparison, statistics from anti-tobacco activists Campaign from Tobacco Free Kids claim that approximately 7,300 people die from smoking in Washington annually, at cost to the state of $2.81 billion.


In contrast, the total deaths attributed to the use of electronic cigarettes is zero — not just in the state of Washington, but worldwide.


Clearly, lacking any logical justification for equalizing taxes between electronic cigarettes and those made from tobacco, one can only come to a single conclusion: Carlyle’s bill is a shameless cash grab at the expense of the vapers of Washington.


Legislature considers 75% tax on e-cigarettes | Northwest News | The Bellingham Herald.



Washington State Mulling 75% Tax on E-Cigs

Wednesday, February 12, 2014

KY Governor Calls for 20% E-Cig Tax

A tax reform plan crafted by Kentucky’s governor, Steve Beshear, includes a 20% tax on electronic cigarettes.


The bill, currently under discussion in Kentucky’s house appropriations and revenue committee, would also raise cigarette taxes by 40 cents per pack.


“Legislators should remove these provisions from the plan before considering the rest of the package during this year’s legislative session. While Governor Beshear’s Kentucky Competes proposal is a good start for a discussion on the need for tax reform in the state, it represents a $210 million annual net tax hike on Kentucky taxpayers, which is the last thing Kentucky residents need after seeing over 20 new and higher federal taxes imposed from Washington in just the past few years.”

–Grover Norquist, ATR


A statement issued by Americans for Tax Reform expresses disapproval of the new e-cigarette tax, calling them “punitive for low-income individuals,” and saying the new taxes “make little sense.”


A letter from ATR president Grover Norquist to the Kentucky legislature opposes the cigarette tax, but calls the new e-cigarette tax “particularly troubling.”


“For decades, lawmakers have tried to mitigate smoking and the harm it causes through punitive taxation and heavy regulation,” Norquist says in the letter. “However, with e-cigarettes, the free market has provided a solution to a problem that social engineers have not been able to address through stiff government regulations. The imposition of new taxes on these products perpetuates an issue lawmakers have spent so much time trying to eliminate, as e-cigarettes cut down on smoking and people’s dependence on tobacco cigarettes.”


The letter goes on to call the new taxes “shameless tax grabs that make little sense from a revenue or publioc health perspective.”


KY Governor Wants Tax on Electronic Cigarettes – Tristatehomepage-Eyewitness News.



KY Governor Calls for 20% E-Cig Tax