Another ballot measure to watch. Montana recently put a $2 a pack cigarette tax increase on its ballot to help pay for Medicaid programs. And sure enough, a fishy organization that is quietly funded by RJ Reynolds and Altria is putting out a massive advertising campaign to stop it.
Having lived in Montana for 12 years, I suspect this ballot measure will fail. Montanans are extremely anti-tax. That being said, voters in the state did approve a $1 a pack tax increase about 12, 13 years ago. I was pleasantly surprised that it passed.
That brought Montana’s cigarette tax to $1.70 a pack, which is just below the national average. The raise to $3.70 a pack would be one of the highest taxes in the nation.
This group, called Montanans Against Tax Hikes (notice no mention of that Big Tobacco financing in its name?), is expected to spend up to $680,000 to defeat the measure. According to the Helena Independent, Montanans Against Tax Hikes is almost entirely funded by the makers of Marlboro and Camel. That would be Altria and RJ Reynolds.
That figure compares to $61,000 being spent by proponents of the tax increase. They barely seem to have a chance.
$680,000 sure seems like a lot to defeat a tax measure in a smalls state like Montana, but keep in mind, Big Tobacco spent tens of millions to defeat cigarette tax measures in California (Big Tobacco won the first time, defeating a cigarette tax increase by a few thousand votes, but lost round two, as California raised its cigarette taxes by $2 a pack thanks to a Nov. 2016 ballot measure.)
Probably roughly about 200,000 people in Montana smoke. Say they spend an average of $1,500 a year on cigarettes (that would be just less than a pack a day). It’s believed that every $1 you add to a pack’s cigarette tax drops the smoking rate about 10 percent — so a $2 a pack increase would translate into about 40,000 lost smokers. So 40,000x$1,500xper year = Now you see why Big Tobacco is willing to spend $680,000 to defeat the measure.
The measure would also tax e-cig products for the first time in Montana. The measure goes to a vote in November.
Here’s a really good story from U.S. News and World Report about how the smoking rate in the U.S. has dropped dramatically through much of the country … except for one region.
And that’s this funky swath from the Upper Midwest, beginning in West Virginia and then into the Deep South and even some of the lower Midwest. The U.S. News and World report looks at these 12 states — Missouri, Oklahoma, Tennessee, Arkansas, Mississippi, Alabama, Indiana, Ohio, Michigan, West Virginia and Kentucky.
Two of these states — West Virginia and Kentucky — have the highest smoking rates in the country at over 24 percent. By comparison, the national smoking rate is roughly 16 percent. Every single one of those 12 continguous states has a smoking rate over 20 percent.
From the article:
Adult smoking rates in “Tobacco Nation” parallel those in some of the most tobacco-heavy countries in the world, including the Philippines (23 percent), China (28 percent) and Indonesia (the highest rate at 35 percent). The high smoking rates have serious health consequences for both individuals and communities; there are 30 percent more preventable hospitalizations for “ambulatory, care-sensitive conditions” for Medicare enrollees in the 12-state bloc than in the other 38 states, the report said.
“It’s tragic [in a] nation with these resources financially – medical resources, technology resources, et cetera – that we have a part of the country [where] 66 million people live … that looks more like Brazil or Bangladesh or the Philippines than the United States of America, and that’s just wrong,” says Truth Initiative CEO and President Robin Koval.
These states have a couple of other things in common — most of them have no statewide smoking ban and most of them have low cigarette taxes. Michigan and Ohio are the only two states in that swath that have indoor smoking bans.
This graphic shows the average state cigarette tax in those states is just 98 cents a pack, roughly half of the $1.89 a pack in the other 38 states.
It also isn’t a coincidence that most of these states are conservative and vote heavily Republican. Republican legislatures tend to be more averse to taxes and regulation, so you see no statewide smoking bans and low cigarette taxes.
And you also see a very high lung cancer rate in all of these states.
And there is also a lot of tobacco growing in that region, with millions of tobacco dollars contributed to political candidates. To keep those taxes low and keep those regulations away.
It’s something to celebrate the truly impressive inroads that have been made against smoking in the past 10 years. Both the adult and teen smoking rates have plummeted, the majority of states and major cities in the country have smoking bans, cigarette taxes have gone up and lung cancer deaths are going down. But, that’s sobered by the reality that one part of the country is being left behind by all these advances. People there are being betrayed by the people they’re voting into office.
Anyway, here is a link to a very cool interactive map where you can click on each state to see its smoking rate.
New York City continues to build upon its reputation as the most tobacco-unfriendly city in America.
A pack of cigarettes in New York City will now cost $13 a pack under a “minimum price law” passed by the city council.
In addition, the council banned cigarette sales in all pharmacies and will cut the number of licenses for businesses to sell tobacco (mostly through attrition).
The banning of sales in pharmacies is a great idea, I think. San Francisco already did this and the pharmacy chain CVS banned cigarette sales. Meanwhile, other pharmacy chains like Walgreens are being lobbied to stop cigarette sales.
New York City also has among the highest cigarette tax in the nation — about $5.85 a pack … just for taxes.
New York already has a pretty low smoking rate — out of more than 7 million people, roughly 900,000 are smokers, about 12 percent, lower than the national average of about 16 percent.
I have mixed feelings about the $13 a pack law because I think by jacking up the price of cigarettes THAT high, two things will happen … it will encourage some people to quit but it will also add to what is already a major cigarette smuggling problem on the East Coast.
Virginia, only about a four-hour drive from New York City, has some of the lowest cigarette taxes in the nation at 30 cents a pack. So a pack of cigarettes in Virginia is already $5 a pack cheaper than New York City, even before this new law takes effect.
This inequity in tobacco taxes has created a huge cigarette smuggling businesses on the East Coast (North Carolina is also 45 cents a pack). It’s estimated that it’s a $15 billion a year industry. So, I fear that jacking up the price that much is just going to do that much more to create a black market for cigarettes.
And of course, if I was a pack a day smoker living in New York City, it would be worth it frankly to make a day trip to Virginia three or four times a year and buy a bunch of cartons of cigarettes. An average pack of cigarettes in Virginia is $5.50 — you’d be saving $7.50 a pack by going to Virginia. A carton is probably about $70 cheaper. Buy 10 cartons of cigarettes you’d have a stock of cigarettes to last over three months and you’d be saving as much as $700!
Honestly, I don’t see a thing stopping people from doing that.
I believe at a certain point, jacking up cigarette taxes reaches a plateau of diminishing returns. Yes, cigarette taxes should be higher in a lot of states, Virginia’s tax is insanely low, but jack it up too high, you encourage people to drive out to the nearest Indian reservation to buy smokes .. or Virginia. I think $2 a pack is a reasonable tax.
And Jesus, states need to get together to even out the inequity in their cigarette taxes, especially on the East Coast. Or the smuggling business is going to continue to thrive.
Hello again from the Lounge, especially to all of our new readers from India.
Big Tobacco twice succeeded, spending tens of millions of dollars in the process, in having cigarette tax increase measures beaten back in California. The industry also for many years had successfully lobbied the California State Legislature from increasing cigarette taxes. Well, in November 2016, Big Tobacco finally lost, as Californians passed a whopping $2 a pack increase by a large margin.
That jacked up California’s cigarette tax from 87 cents a pack — one of the lowest in the nation — to $2.87 a pack, one of the highest in the nation.
Big Tobacco REALLY cared about California, which at first I thought was a little weird because California had a pretty low smoking rate even before the tax increase. Then, I thought about it … while California has one of the lowest smoking rates in the nation, it also still has 38 million people, so 10 percent of say 30 million smoking-age residents of California, is still 3 million smokers, spending an average of say $1,000 a year on their habit, which adds up to $3 billion a year.
Then, I saw why Big Tobacco was willing to spend tens of millions to defeat tax increases in California, because everyone knows higher tobacco taxes are one of the most effective ways to encourage people to quit — and to encourage teens not to start to begin with. Big Tobacco spent a staggering $71 million to try and defeat the 2016 measure. Their effort finally failed.
Well, Philip Morris is trying a new (actually, not so new) tact to undermine California’s cigarette tax increase … discount coupons to smokers in California.
Again, with $3 billion in revenue at stake, it’s worth Big Tobacco’s while to take a bit of a bath on discounts.
From a New York Times article:
“The hope is that by buffering the price shock, fewer people will quit,” said Stanton Glantz, a professor of medicine at U.C. San Francisco whose research focuses on tobacco.
In 2014, the tobacco industry spent more than $5 billion — nearly two-thirds of its entire marketing budget — on discounts passed along to consumers, according to a government report.
At $2.87 a pack, the cigarette tax threatens to further erode (California’s) customer base. Reports have suggested that some smokers have already quit.
Cigarette taxes play a “huge” role in smoking rates, said Ilana Knopf, director of the Public Health and Tobacco Policy Center at Northeastern University Law School in Boston.
“And of course the industry knows that,” she said, “so they do whatever they can to counter those policies.”
In the short term, it might work a bit, but in the long run, Big Tobacco will have to give up on California, where the smoking rate will surely drop because people won’t want to pay $2.87 a pack.
Sacramento Bee editorial on tobacco taxes
This editorial printed this week suggests that the $1 billion a year expected to be generated from California’s cigarette tax could balance some of the cuts the state might see from Republicans in D.C. trying to cut federal funding for health care.
Lost in all the hubbub over this election (and a reason why I waited a week and a half to post about it) was California voters approving a $2 a pack increase in their cigarette tax.
California will go from having one of the lowest cigarette taxes in the country at $0.87 a pack to $2.87 a pack. Big Tobacco spent tens of millions to defeat prior attempts at raising California’s cigarette tax (in fact, a 2012 measure failed literally 49.9 percent to 50.1 percent), but this time it failed.
According to Salon, Big Tobacco spent $71 million to defeat the California measure, which was approved with 63 percent of the vote. California has one of the lowest smoking rates in the country at about 10 percent, so why would Big Tobacco care? Because that’s 10 percent of 38 million people — basically about 3 million adults.
It’s estimated (and studies have backed this up) that raising the cigarette tax by $1 a pack cuts the smoking rate by about 10 percent. So a potential 20 percent cut in those 3 million smokers (that’s 600,000 smokers), each of them no longer spending roughly $1,000 a year on cigarettes? You can see why Big Tobacco cared.
The Salon article claims this measure will cost Big Tobacco $250 million a year in lost sales (at least, that’s roughly a loss of 250,000 smokers). A drop in the bucket for Big Tobacco, but enough to get their attention.
Big Tobacco was able to defeat similar measures in Colorado and North Dakota, where health agencies didn’t have that much to spend against the industry. In California, health agencies spent $36 million to offset the industry’s $71 million.
Big Tobacco killed similar tax proposals in Colorado ($1.75 a pack; 46 percent yes) and North Dakota (44 cents; 45 percent) by outspending proponents by a factor of six.
The lesson: You don’t have to spend as much as the tobacco industry, but you need enough money to get your message out.
As an aside, California also approved legalizing pot, as did Nevada, Maine and Massachusetts. The Salon article goes on at length about the danger of Big Tobacco moving into the pot industry, something I’ve written about extensively in the past and don’t need to rehash in this post.
The Los Angeles Times has come out in favour of Proposition 56, a November ballot initiative which would raise California’s cigarette tax by $2 a pack.
This is the third time California has tried a ballot measure raising its cigarette tax (The State Legislature is too yellow to do it themselves.). A more modest $1 a pack proposal in 2012 lost by less than 1/2 of 1 percent of the vote (It lost by less than 25,000 votes out of 5 million ballots cast) after Big Tobacco spent more than $40 million to defeat it.
Most of the money from this tax increase is specifically earmarked for Medi-Cal.
… tobacco taxes are really a brilliant and beautiful thing: They not only bring in revenue for government but also serve a social good in the process. On average, peer-reviewed studies have shown, a 10% increase in the total price of cigarettes will yield a 3% to 4% reduction in adult consumption — and a 7% reduction among young smokers.
While bringing down smoking rates, the tax also would bring in between $1 billion and $1.4 billion in its first full year — 2017-18 — after which, the revenue would decline slowly as the number of smokers shrinks. Some of the money would go to administration and enforcement of the tax itself; a sizable chunk would go to tobacco prevention and control programs; a portion would go toward research on cancer, heart and lung disease and other tobacco-related diseases. But the bulk of the funds would go to Medi-Cal, the state’s health insurance program for low-income residents — specifically, to pay healthcare providers more to treat Medi-Cal patients.
Many people are surprised to hear this, but California actually has one of the lowest cigarette taxes in the country — just 87 cents a pack. The national average for state taxes is about $1.65 a pack, so California is barely half the national average.
This proposal would jump California from the 37th highest cigarette excise tax in the country to ninth.
Increasing cigarette taxes has been shown time and again to be one of the most effective ways to cut the smoking rate. It gives people extra incentive to quit and kids extra incentive to not start to begin with. I mean, if someone is smoking just a pack a day of cigarettes, with this cigarette tax, quitting would save you $2.87 a day. That’s about $1,000 a year. That’s just one pack a day.
It’s interesting that Big Tobacco would spend so much in California trying to beat it, because California already has one of the lowest smoking rates in the country. But, if the measure cut the smoking rate by just 5 percent … that’s 5 percent coming from the biggest state in the country. That’s maybe 200,000 to 250,000 smokers, multiply that by maybe $1,000 a year they would no longer be spending on cigarettes (and this is for perpetuity) … you start seeing why Big Tobacco cares.
The tobacco industry is already trying to spread lies that the initiative would somehow take money away from schools. From the L.A. Times editorial:
The battle to pass Proposition 56 will be tough, as always, because of the power of the tobacco lobby, which already is making deceptive claims like this one: “Prop 56 cheats schools out of at least $600 million per year.” That’s baloney. Proposition 56 wouldn’t take a penny from schools; it would merely exempt the new tobacco tax revenue from the requirements of Proposition 98, the 1988 measure which guarantees public schools a large share of the state’s core revenues. Many initiatives include such an exemption.
Don’t believe the cynical, disingenuous opponents of this measure. Proposition 56 will save lives. The Times urges a yes vote.
Big Tobacco has already filed bullcrap litigation attempting to get a ballot measure removed from the November 2016 ballot that would raise the California cigarette tax by $2 a pack. And on top of that, the industry is planning to spend at least $17 million in order to defeat the measure.
Big Tobacco spent up to $40 million several years ago to defeat a $1 a pack cigarette tax increase. That measure was defeated in 2012 by an incredibly narrow margin — 50.2 percent to 49.8 percent. It lost by 24,000 votes out of 5.1 million votes cast.
Prop 56 would double that increase to $2.87 a pack. Right now, the state cigarette tax is only 87 cents a pack, which surprising to a lot of people, is one of the lowest state cigarette taxes in the U.S. Yup, tax-happy California is actually in the bottom third for cigarette taxes in the country. The $2.87 a pack tax would be one of the highest in the nation. New York has the highest at $4.35 a pack.
First, the industry filed a suit claiming that proponents of the measure have lied that the measure — Proposition 56 — would actually take money away from schools rather than provide a new big revenue stream for education (estimated to be $20 million a year). The industry is claiming that the title of the ballot measure contains inaccurate information and is therefore against the law.
A hearing was held last week, not much must have happened because I can’t find any news stories about the result of the hearing. According to a letter written to the court by Tom Torlakson, head of Public Instruction for California, the tobacco industry states that “make no mistake, Proposition 56 will not take a dime away from education.” Torlakson calls Big Tobacco’s claims “false and misleading,” “preposterous” and “insulting.”
This LeftofCenter story, not particularly well-written honestly, talks about the measure’s effect on e-cigarettes and how this is one of the reasons Big Tobacco is opposed to it. This is an important point. Prop 56 would not only raise the tax on cigarettes, it would add a tax to vaping products, too. On the Crooks & Liars article about it, some commenters mistakenly state that Big Tobacco is threatened by or competing against the vaping industry. Not really, not as much as a lot of people think. The article is correct that this would hurt Big Tobacco by taxing vaping products. Big Tobacco actually controls 75 percent of the vaping industry. The top three vaping brands on the market are actually owned by RJ Reynolds, British-American Tobacco and Philip Morris. So, yeah, this tax is hitting Big Tobacco in two directions.
Big bucks to fight the tax measure
While this lawsuit apparently didn’t accomplish anything, Big Tobacco has put together a war chest of $17 million to advertise against Prop 56.
From Capitol Public Radio:
Proponents such as Jim Knox of the American Cancer Society’s Cancer Action Network say they’re preparing for an onslaught of opposition.
“This is classic tobacco industry strategy and deception,” Knox said of the cash infusion. “They will spend tens of millions of dollars to confuse and deceive the voters about the deadly nature of their product, as they have been doing for decades.”
Expect the industry to hide behind a bunch of Libertarian anti-tax “choice” bullshit in its advertising. That’s Big Tobacco’s MO.
From the story:
Beth Miller, a spokeswoman for No on Prop 56, says her campaign wants to educate voters about the problems it sees with the cigarette tax. She said it sidesteps requirements that money from new taxes fund schools.
“The proponents claim the tax increase will help people quit smoking. But it really is a tax hike grab by the insurance companies and other wealthy special interests,” Miller said.
The good news is Prop 56 backers have raised $16.6 million themselves to promote the measure.
Polls show roughly two-thirds support for the proposed tax increase. However, the 2012 measure also had strong public support until the tobacco industry spent millions to defeat it.
Prop 56 and marijuana measure
expected to raise $2 billion
One of the arguments in favour of the proposed tax is that it along with a measure to legalize marijuana, would raise $2 billion annually for the state of California.
Currently, California brings in $800 million in tobacco taxes. A state agency has estimated that Prop 56 would generate another $1 billion to $1.4 billion a year for state coffers. While the tax would triple, the revenue would roughly double. That makes sense, because such a huge tax increase would likely drive down the smoking rate.
Additionally, the state is estimating another roughly $1 billion a year in tax revenue from legalizing marijuana. That’s based on revenue increases seen in Colorado and Washington from their marijuana measures (I suspect pot hasn’t been legal in Oregon long enough to get a lot of revenue information).
Good news, bad news on the cigarette tax front. First the good news:
California
Proponents of raising California’s cigarette tax from 87 cents a pack to $2.87 a pack say they have nearly twice as many signatures as needed to qualify the measure for the November 2016 ballot. They were required to get 545,000 signatures and say they have gathered nearly 1 million.
You might be surprised to know California actually has one of the lowest cigarette taxes in the nation. California has the 36th-highest cigarette tax in the nation and the average state cigarette tax of $1.60 a pack is nearly double California’s tax.
This is partly because even though California has one of the lowest smoking rates in the nation at about 13 percent (I believe Utah is the only state lower), the state represents about 11 percent of the population of the country, so even with a low smoking rate, California represents a huge chunk of the national tobacco market. Big Tobacco spent tens of millions fighting a cigarette tax ballot measures in 2006 and 2012 (a whopping $66 million in 2006 and at least $40 million in 2012). The industry ended up winning in 2012 by the narrowest of margins (literally 50.1 percent to 49.9 percent). Expect Altria and RJ Reynolds to again pour millions into California trying to defeat this measure. If I remember right, that proposed cigarette tax increase in 2012 was only $1 a pack, not two.
And Big Tobacco will fight it, because study after study has shown that an increase in cigarette taxes has a tangible effect of driving down the smoking rate. It simply gives people more motivation to quit and prices a lot of teens out of the cigarette market. California is roughly 10 percent of the cigarette market in the U.S. This freaks out the tobacco industry.
However, California has an ace up its sleeve this time. In addition to public health groups such as the American Heart Association, the American Lung Association and the American Cancer Society, the effort to raise the cigarette tax has some deep pockets of its own to combat Big Tobacco’s spending. Billionaire philanthropist Tom Steyer is helping to bankroll the cigarette tax measure this time around. He’s already chipped in $1 million to fund the petition drive. Several other major groups are spending millions to back the measure.
If the measure passes, it would raise roughly $1 billion a year. That money is specifically earmarked in the ballot measure for MediCal and programs to reduce smoking. Latest polls show 67 percent support for the proposal, but there was a similar level of support in 2012 before the Big Tobacco anti-tax media blitz.
Missouri
Bad news in Missouri, where a state judge invalidated a ballot measure that would raise Missouri’s dead-last-in-the-nation cigarette tax of 17 cents a pack. The judge ruled that financial estimates of the ballot measure were “insufficient” and “unfair.”
This measure is extremely modest compared to California. Tax increase proponents are proposed a tax increase of only 60 cents a pack — to be phased in over three years — leaving Missouri with a cigarette tax of 77 cents a pack, which would still be one of the lowest in the nation.
From a KSL.com story:
The financial summary prepared by Auditor Nicole Galloway’s office estimates the measure would generate between $263 million and $374 million annually. That largely would go to early childhood education; smaller portions would go to early childhood health programs and anti-smoking programs for youth and pregnant women. The financial summary said the impact to local governments was unknown.
Green struck down the financial summary for two reasons: The estimate on state revenues failed to account for the fact that people may buy fewer cigarettes as the price rises, resulting in an “unreasonably high” revenue projection, and the summary should have noted the potential costs to local governments due to a possible decline in cigarette sales.
The financial summary appeared on the petitions people signed and also would appear on the ballot.
“I collected signatures myself. Nobody really ever asked about that” financial estimate, said Linda Rallo, executive director of Raise Your Hand for Kids. “They are more interested in seeing that we don’t adequately invest in early childhood education. … A lot of folks, too, think our cigarette tax is too low and would like to see that raised.”
An appeal of the decision is planned. A competing measure is being backed by the Missouri Petroleum Marketers & Convenience Store Association. This would only raise the cigarette tax by 23 cents a pack — again gradually — and would raise about $100 million annually.
Missouri is one of the most tobacco-friendly states in the country. In addition to its ridiculously low cigarette tax, Missouri has no statewide smoking ban. It also, not coincidentally, has one of the highest smoking rates in the nation at 20.6 percent (compared to a national rate below 17 percent). Missouri also has the third-highest rate of lung cancer in the country.
West Virginia
The West Virginia State Senate last week approved by a 17-16 vote to increase its cigarette tax by 45 cents a pack. Get this, most of the Republicans voted for the tax increase, while most of the Democrats voted against it. Why? Because the tax increase wasn’t big enough.
Like Missouri, West Virginia has a very low cigarette tax at only 55 cents a pack. Republicans are proposing making it an even $1 to help make up a $270 million budget deficit. The measure would raise an estimated $78 million a year. West Virginia may have to shut down its state government in July if a budget cannot be passed.
Democrats want to raise the tax by $1 a pack to $1.45, which would raise $115 million a year.
The proposed tax increase goes to the State House, where it faces a tough fight from a coalition of Republicans who oppose any tax increase and Democrats who want to see a bigger increase.
West Virginia has the highest smoking rate in the nation at 26.7 percent. Because of the high smoking rate and the coal industry, West Virginia also has the second-highest rate of lung cancer in the country.
From purely an SEO standpoint, I know I’m supposed to break out these stories into separate posts, but that’s too much of a pain in the ass, so I’m compiling some legislative updates into one post because I’m feeling lazy.
First off, a major cigarettes tax increase in Louisiana.
Louisiana raises cigarette taxes
Louisiana Governor John Bel Edwards just signed a bill raising Louisiana’s cigarette tax a tiny bit from 88 cents a pack to $1.08 a pack. That still leaves Louisiana with one of the lowest cigarette taxes in the U.S. This was done partly out of pure, sheer, unadultered desperation after 8 years of Republican Bobby Jindal’s fiscal mismanagement left the state of Louisiana utterly broke. I hate to bring politics onto the lounge, but Jesus, between Schwarzenegger, Brownbeck, Scott Walker and Jindal, have voters not figured out that Republicans simply cannot govern responsibly? Poor Louisiana, which has never gotten over the fiscal impact of Hurricane Katrina, is painfully broke and looking at all kinds of tax increases just to keep basic state services running.
I don’t get it, why do people keep voting for Republicans when they’ve shown time and again they simply … cannot … govern … or manage a budget responsibly, particularly at the state level. Again, I try to keep partisan politics out of the Lounge, but I honestly don’t get this.
This tax is expected to add $230 million to state coffers over the next five years, which will help a little.
The average cigarette tax in the U.S. is about $1.60 a pack, so Louisiana is still well below the national average.
Wales to ban e-cig use indoors
More and more places are banning e-cigarette use indoors, including Wales, which is set to pass a law banning them inside.
I didn’t mind e-cigs indoors for a long time. Their vapour doesn’t smell nor until I started reading all the stories about the @#$%ing formaldehyde and diactyl in e-cigarette vapour and now I don’t care if it isn’t annoying or irritating, I don’t want to ingest it in any way, shape or form. Not until MORE IS KNOWN about just how dangerous that vapour might be. Now, whenever I’m near someone using an e-cig indoors, I find myself holding my breath or leaning away from them. What it comes down to is … I … simply … do … not … trust … that … vapour. No offence.
(Welsh Health Minister Mark Drakeford) has not dismissed claims that e-cigarettes may help people quit smoking.
He added: “The Bill does not prevent the use of e-cigarettes to help people stop smoking if they believe they will help them. Wherever you can smoke a cigarette you will be able to use an e-cigarette.”
Vermont to ban e-cig use indoors
Vermont is set to pass a bill that would ban e-cig use indoors and would put restrictions on the sales of e-cig products to keep them out of the hands of minors … ARE YOU PAYING ATTENTION, FDA?
E-cigs would have to be kept out of sight in stores or kept in a locked container. They would also be banned in bars and restaurants. I haven’t kept track of how many states are banning them indoors, but this is a growing tide.
I have no idea if this bill is going to pass, but this in itself is a pretty amazing development.
West Virginia, a solidly red Republican state (Obama got less than 30 percent of the vote in 2012) and either the No. 1- or No. 2-ranked smoking state in the nation (in the last survey, West Virginia was No. 2 at a staggering 29.9 percent smoking rate, just a tick behind Kentucky.), passed a pretty significant cigarette tax increase in the State Senate.
West Virginia’s cigarette tax is one of the lowest in the nation at 55 cents a pack, no surprise in such a conservative state with such a high smoking rate. The average state cigarette tax in the nation is about $1.50 a pack.
A bill was introduced in the W.Va. Legislature to raise the cigarette tax to $1 a pack, a pretty modest increase that would leave W.Va. still well below the national average tax. However, that bill, proposed by the governor, was amended to raise the tax by $1 a pack to $1.55 a pack, right around the national average.
In a Republican-dominated State Senate, the bill passed by a margin of 26-6. Wow. Republicans favoured the bill 12-6, joining 14 Democrats in favour. That blows me away.
The tax increase would raise an estimated $115 million and would help West Virginia balance a severely strapped budget.
In my mind, more importantly, the tax increase would likely make a dent in West Virginia’s shockingly high smoking rate. Studies have shown that a $1 a pack cigarette tax effectively lowers the smoking rate by 10 percent. It actually does help encourage smokers to quit to hit them in the pocketbook.
Sen. Tom Takubo, R-Kanawha, a physician, noted that 10 times as many West Virginians die from tobacco-related illness as die from narcotics overdoses and said the existing 55-cent-a-pack tax is not enough to motivate smokers to quit.
“You have to hit somebody hard enough in the pocketbook that they say, ‘Now, I’ll quit,’ ” Takubo said.
While tobacco taxes are sometimes seen as inordinately burdensome on the poor, Takubo said smokers spend an average of $4,700 a year on cigarettes, money he suggested would greatly benefit low-income families.
“That’s a big number that can help out a lot of people — that’s cash,” he said.
Not coincidentally, West Virginia also has one of the highest lung cancer death rates in the nation, (also partly because of the state’s coal industry.).
The governor is apparently on board with the cigarette tax increase, but I have no idea if the tax increase will pass in West Virginia’s State Assembly. As I pointed out before, the state’s budget is extremely tight and they’d be pissing away $115 million a year in revenue rejecting the tax.
I can’t keep track in every single state, but I know cigarette tax bills are making their ways through legislatures in several states, including Indiana, Louisiana and California. California plans a state ballot measure to raise its ridiculously low 87 cents a pack cigarette pack. A similar bill in California barely failed a couple of years ago, literally by a few thousand votes, after Big Tobacco poured millions of dollars into defeating it.