Kentucky should tax e-cigarettes
Published 7:00 am Thursday, January 17, 2019
Politicians are always looking for something popular to support. And most of them do want to make a positive difference in the lives of their constituents, especially children.
So, in a day and age when it seems increasingly difficult to find common ground, there is something lawmakers in Frankfort could do that would be supported by possibly three out of four Kentuckians: They could vote to tax e-cigarettes.
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A recent survey by Mason-Dixon Polling and Research Inc. found that 73 percent of Kentucky voters supported a state excise tax on e-cigarettes, and only 21 percent were opposed.
Currently, e-cigarettes are subject only to Kentucky’s 6 percent sales tax.
Here’s another bonus for lawmakers: The survey found opinions were largely bipartisan. Republicans supported a tax at a rate of 77 percent, and 72 percent of Democrats were in favor.
The 2018 General Assembly considered imposing a 15 percent tax on electronic cigarettes last year. But it wasn’t public opposition that stopped them. After a visit by Altria’s chief lobbyist, leaders of the state Senate removed the tax that was part of the 50-cent-per-pack increase on cigarettes.
Altria, the company that used to be Phillp Morris and for years denied the science that showed cigarettes killed people, reported spending $379,760 lobbying lawmakers in the 2018 session, more than double the amount spent by any other business, according to Kentucky Health News.
Big Tobacco has lost much of its political and social capital in recent decades, but it seems its money is still good in Frankfort. Smoking’s days are numbered and the leaders of those cigarette manufacturers know that. But e-cigarettes represent a lifeline to them, a new nicotine delivery system that will do what cigarettes did for decades past – create a generation of addicts who will fork over their money to build a fortune for Altria’s stakeholders.
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In December, Altria took a 35 percent stake in Juul Labs Inc., which boosted that startup’s valuation to $38 billion. The Juul brand e-cigarettes are among the most popular with teens, and no doubt Altria knows that and is banking on the monetary potential each of these young persons represent for a lifetime of addiction.
The nicotine-laced flavored vapor delivered by Juuls is said to be less harmful than the tar-filled smoke that has contributed to the deaths of millions of Americans, which means the company can get more money out of each user if they start younger and live longer. No wonder the company ceded ground on the tax of its old product – cigarettes – in favor of sparing its vaping future.
It is wrong to categorize Altria or Phillip Morris or similar manufacturers as tobacco companies. It has never been about the product for them. They were never really selling an agricultural product. They were peddling addiction. And they have been wildly successful, especially in this state.
Taxing cigarettes, in addition to education and smoking cessation support programs, is a proven method for limiting the smoking rate and helping people quit. Al Cross reported in Kentucky Health News that after the state raised the cigarette tax by 50 cents last year, half of Kentucky adult smokers cut back, considered quitting or tried to quit.
But just think if those smokers had never started. Teens, who are the most vulnerable to addiction, are also the most sensitive to price.
Studies have shown the more expensive cigarettes are, the less teens smoke them. The same should hold true for e-cigarettes.
Kentucky lawmakers should impose a tax on e-cigarettes this session. It would add needed revenue to our state’s beleaguered budget. Voters support it. But more importantly, it would limit the number of children who become addicted to nicotine.
It is time our lawmakers stopped choosing the merchants of addiction over our children.