Congressional Democrats are pushing a bill called the Tobacco Tax Equity Act that would double the federal tax on cigarettes and raise levies on other tobacco products 15-fold. E-cigarettes would also be hit hard.
This segment of What’s Ahead explains why this legislation should be snuffed out.
The resultant higher prices for less lethal tobacco alternatives would reduce the incentive for smokers to switch from smoking cigarettes.
The tax is regressive. Most cigarette smokers are lower-income earners. The higher prices will also fuel an already hot smuggling market. For example, in New York, a high-tobacco-tax state, illicit marketing is estimated to account for 53% of sales.
With this proposed bill, one has to wonder what Congress is inhaling.