E-Cigarette Taxes Keep Smokers Smoking


The Tobacco Tax Equity Act of 2021 (TTEA) was introduced at the end of April in both Houses of Congress by U.S. Senators Dick Durbin (D-IL). Ron Wyden (D-OR), and Representative Raja Krishnamoorthi (IL-D-08).

If passed, the bill would establish new tax rates on both e-cigarette and tobacco products potentially causing an increase in the smoking rate among American adults.

TTEA would equalize tax rates on all tobacco products including e-cigarettes, which are currently untaxed at the federal level whereas combustible cigarettes are taxed at just over one dollar per pack. TTEA’s proponents claim imposing an equal rate to tobacco products on e-cigarettes “would help reduce youth tobacco use” by increasing the cost of e-cigarettes, making them more unaffordable for young people.  

By equalizing tax rates on tobacco products and vapes, the bill’s proponents also hope to disincentivize smoking in America more generally and improve “public health for generations to come.” The Center for Disease Control (CDC) estimates that 34.1 million American adults currently smoke cigarettes and around 8 million adults use e-cigarettes.

Read full article here.

Derek Hosford – ACI – 2021-06-02.

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