A new report by economist John Dunham regretfully pointed out that if the proposed e-cigarette tax is passed, it will have a negative impact on smokers, the industry and the economy.
The analysis entitled ” The Negative Economic Impact of the New Nicotine Tax on Vapor Products in the Settlement Act ” was recently released by the Electronic Cigarette Technology Association （VTA）。 Consistent with the arguments of other experts, the document found that taxes not only make cigarettes cheaper than e-cigarettes, it makes it easier for former smokers to switch back to smoking. Moreover, if the tax included in the “Rebuild Better” Act （HR 5376） is approved, nearly 43,000 jobs will be lost.
Dunham explained: “Our analysis found that the bill will not produce anything close to the tax on cigarettes, but will tax e-cigarette products at a rate much higher （up to nine times） than the tax on a pack of cigarettes .” “Consequently, consumers will be forced to choose between paying “the net price of retail e-cigarette products has increased by approximately 53% （21.2% for standard two packs of cartridges and 73.5% for standard 60-ml bottled e-cigarettes）”。 Liquid） , While the prices of cigarettes and other tobacco products will remain unchanged because they do not have to pay any additional federal taxes.”
Huge negative impact
Dunham also emphasized that the negative impact of the proposed tax on American workers and the economy will be huge. “As many as 42,800 jobs will be lost across the country-and nearly 2.6 million people are looking for work at this time. In addition, the jobs lost due to the proposed tax will result in a loss of $2.2 billion in wages. In addition, state and local governments will lose The e-cigarette industry and its consumers lost approximately US$620.1 million in taxes.” He added that the impact on the economy will exceed US$7 billion.
Tony Abboud, executive director of the VTA, said that, among other things, raising taxes that affect people trying to quit smoking is also an ethical issue . “On the backs of smokers who are desperately quitting and workers who are desperately looking for work, you cannot’rebuild better’. A new nicotine e-cigarette tax that is 9 times higher than a pack of cigarettes is an idea of ??bankruptcy both morally and economically. , The U.S. Senate must remove it from the bill.”