Higher tax rates on electronic cigarettes, reducing vaping rates and increasing the use of traditional cigarettes.
While the House bill includes a nicotine tax that would apply to vaping products and nicotine packets, making them comparable to existing ones on cigarettes, it excludes FDA-approved NRTs such as than nicotine gums and patches. The measure is part of the latest version of the party’s social spending and climate bill which may be passed shortly, but faces an uncertain track due to opposition in the Senate.
Are vaping taxes effective?
Meanwhile, in line with arguments from tobacco control experts, a recent study published in the Journal of Risk and Uncertainty, examining the effects of traditional tax rates on cigarettes and e-cigarettes on rates of tobacco use among adults, found that the increase in tax rates on vaping products are directly proportional to the increase in smoking rates.
The study titled âThe Effects of Tax Rates for Traditional Cigarettes and Electronic Cigarettes on Adult Use of Tobacco Productsâ analyzed the effects of taxes on traditional cigarettes and vaping products, on patterns of smoking. use of these same products in adults in the United States. Researchers looked at data from the Behavioral Risk Factor Surveillance System and the National Health Interview Survey (NHIS), from 2011 to 2018.
The research team found that higher taxes on traditional cigarettes reduced smoking among adults and increased e-cigarette use among adults. Likewise, higher tax rates on electronic cigarettes have increased the consumption of traditional cigarettes and reduced vaping.
âCross-tax effects imply that products are economic substitutes. Our results suggest that a proposed national e-cigarette tax of $ 1.65 per milliliter of vaping liquid would increase the proportion of adults who smoke cigarettes daily by about 1 percentage point, translating to 2.5 millions of daily adult smokers more than the counterfactual of not having the tax â, read the summary of the study.
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