Hawaii Legislation Highlights How E-Cigarette Taxes Are Anything But Productive

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E-cigarettes, tobacco, FDA, smokers, snuff, chewing tobacco, tobacco, cigarette law, smoking bans, smoking patch

Hawaii Legislation Highlights How E-Cigarette Taxes Are Anything But Productive

Last week, Hawaii's state legislature introduced two bills that would ban the sale of e-cigarettes to minors and tax the devices at 70% of their wholesale price, the same rate as tobacco products. Like similar state proposals designed to regulate the smoking alternatives, Hawaii's effort is well-intentioned but misguided. The state's proposal is based on bad science and creates several unintended consequences.

If you are unfamiliar, e-cigarettes (or "e-cigs") mimic traditional cigarettes in almost every way, but lack most of the harmful chemicals found in tobacco. That's where the first problem with the legislation arises. Proponents of the proposal in Hawaii say that e-cigs contain high levels of potentially harmful substances and "...there is very little known about the long term health effects of the use of electronic cigarettes or the vapors given off." But the available evidence counters such assertions. As I have discussed previously on PolicyMic, the first clinical trial that tested e-cigs found that they could "... help smokers to remain abstinent or reduce their cigarette consumption...without causing significant side effects...” The Food and Drug Administration (FDA) also concluded two years ago that e-cigs contain far fewer carcinogens than traditional cigarettes. Boston University public health professor Michael Siegel also highlighted the problem with the legislation's justification, explaining that "the anti-smoking ideologues would advise victims of a shipwreck not to use the lifeboats because they haven't been fully tested to ensure their safety. And if thousands of victims of that shipwreck were successfully keeping afloat because of the lifeboats, the anti-smoking ideologues would advise them to abandon the lifeboats and stick to 'government approved' survival methods." 

The tortured logic doesn't stop there, however. Given that smoking kills over 400,000 people annually, as proponents of the Hawaii legislation admit, their fear that e-cigs could be harmful is entirely misplaced. Tobacco is clearly the real killer here. The bills' proponents are doubly wrong on this point because they attempt to associate the risks of tobacco use with e-cigs, which do not contain tobacco. They also claim that e-cigs could serve as a "gateway" to the use of other more dangerous tobacco products, even though the overwhelming effect of e-cigs has been to reduce tobacco use. 

Hawaii's proposal to classify and tax e-cigs as tobacco products will also create some dangerous unintended consequences. Much research suggests that taxing tobacco raises its price and discourages its consumption. In this case, however, the state would be discouraging consumption of one of tobacco's safer competitors. This is very troubling because lower prices relative to cigarettes provide an incentive for smokers to switch to e-cigs. Worse, the impact won't be restricted to the islands. One of the major suppliers of e-cigs, a company called Volcano, is based in Hawaii. As a result of the tax, retailers around the country supplied by Volcano would be forced to raise their prices -- or stop selling e-cigs altogether. The result, then, would be even fewer smokers giving up traditional cigarettes.

But the pending legislation hurts the cause of public health in other ways as well. With smokers incentivized to stick to traditional cigarettes, everybody else gets to endure more secondhand smoke, and continue covering the health care costs associated with smoking. Both are externalities that public health advocates have pointed to for many years in their fight against the tobacco industry. These spillover effects could be avoided by embracing smoking alternatives like e-cigs. But as it stands, states like Hawaii are blocking solutions to important health problems just like cigarette manufacturers did for so long.  

After good science, the second casualty in these sorts of debates is usually individual freedom. While there is certainly a case to be made for restricting liberty when a person's actions threaten the health and safety of others, we have just the opposite in this case: state governments restricting choice in spite of the impacts on public health and safety. If for no other reason, this is enough to push back against the several states that have taken aim at e-cigs. 

Photo Credit: momentimedia

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Cameron English

Cameron is a writer, college student and former California State Assembly intern from Sacramento, California. His work has been published in the ...

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John Dupont

After smoking for 25 years, I switched to electronic cigarettes 6 days ago. Already, my lung capacity has increased so much that I went jogging today. E-cigs may not be healthy, but they have to be safer than tobacco. I am charting my progress at http://mrelixir.blogspot.com, for anyone interested.

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This would be a very big hit, because if one state passes it, it is only a matter of time before all states pass it. They are making claims on something that is not even fully tested, however, the preliminary tests show it as a great replacement

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Follow my blog at http://YarisG33K.wordpress.com

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Douglas,

The only tax on nicotine patches is sales tax. Some cities even distribute free patches. New York City is one of them and they have the highest tobacco taxes in the nation. So, is there really any difference in getting nicotine by inhalation or absorbing it through your skin?

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  • Douglas Goodman 3 months ago John, Thanks. My thought was if Ha...

John,
Thanks. My thought was if Hawaii was going to tax e-cig, the Patch was next if it wasn't already taxed as tobacco. My point is there is no difference making the proposed tax on the e-cig more unreasonable.

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I guess the trade winds have blown away Hawaii's common sense. I thought the whole idea was to encourage people to quit smoking. The U.S. govt has been warning people about the dangers of smoking since 1966. Human ingenuity has produced varying products to help those who heed the warning and want to stop to accomplish that, e-cigs are just the latest. While the cost of e-cigs with the tax will remain lower, over the long-term, than tobacco cigarettes, the tax itself introduces a psychological negative to the decision process.

Is the Nicotine Patch taxed?

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I think this is the only PolicyMic comment thread that also serves as a libertarian porn fest.

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If anybody wants to sign a petition against the two bills in Hawaii, you can do that here: http://www.change.org/petitions/stop-hawaii-bills-hb2557-and-sb2819-from-being-signed-into-law

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  • Kathleen Quinn 3 months ago Thanks for this important article C...

Thanks for this important article Cameron. I visited the site and signed the letter. It's amazing how the government has no problem creating taxes for average taxpayers when it has so much trouble taxing the wealthy.

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  • Cameron English 3 months ago Thanks, Kathleen. You can imagine ...

Thanks, Kathleen. You can imagine how annoying this whole circus is. They told me to quit smoking; I quite smoking. But they still want to tax me because I didn't quite the right way.

Mugatu sums up my feelings: http://www.youtube.com/watch?v=4DVAsmrwdtQ

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  • Kathleen Quinn 3 months ago That youtube could apply to just ab...

  • Cameron English 3 months ago I haven't had a real cigarette...

  • Kathleen Quinn 3 months ago I see. In all fairness to people wh...

That youtube could apply to just about anyone about just about anything. Thanks-it's amusing. What do you mean they taxed you for not quitting the right way?

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I haven't had a real cigarette in over two months. But they still want to tax my e-cig like it's a tobacco product. That's all wrong.

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I see. In all fairness to people who are trying to quit smoking, I believe it would serve everyone much better if such quit smoking devices could be covered by - or at least written off as - a medical device; expense. After all, how many wealthy people have written off swimming pools, etc. as medically necessary. Not to mention plastic surgery.

Has that approach been undertaken by anyone? As John Dupont stated - his lung capacity has improved greatly. May be worth looking into with others using this method. Just a thought. This is also an environmental issue considering what those toxins do to the air. There are just endless benefits to everyone. I would like this option better supported.

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Cameron.
Congratulations to you also. Keep it up.

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Kathleen,
Are you suggesting treatment of addictions along with wellness and prevention measures be covered by insurance? That would reduce healthcare costs!

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Thank you, sir.

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Hi Douglas,
I was not thinking in terms of addictions or but--that is you certainly are right on target. Since smoking has been proven to be more addictive than some drugs or alcohol. Thanks for reminding. Some insurance plans do (or did) cover rehab centers so maybe some cover quit smoking programs. I think they do but I'm not sure if covers these newer devices but it couldn't hurt to look into them. If enough people challenged it from the view of national health cost reduction it might just work out positively. Of course, it might involve lawyers.

I do know some of the over the counter nicoteine patches cause some people to hallucinate because I know people who used them. E-cigs are safer.

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Sorry Cameron--I forgot to say CONGRAGULATIONS !!! Best of luck to you. I know it is a very difficult struggle.

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Passing a law based upon a "presumption" that any product could "potentially harm" without knowing is full intrusion on the part of government. When will it stop? Volcano will undoubtedly move their production to a more tax friendly state or go out of business. Though initially, they effect the price, competition will force them to seek less bureaucratic draconian areas or begin a quick slide to irrelevant sales and out of business. This is the same effects that have happened to outsourcing to other business friendly countries. In a global economy, competition is global. But, the same logic is also being used in soft drinks, taxing fast food, and other social engineering by the "mommy state". Our laws are driving business and jobs away.

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  • Cameron English 3 months ago But they mean well, Ben. That'...

But they mean well, Ben. That's all that counts.

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  • Ben Poole 3 months ago Yeah, I guess the Sadia Arabian rel...

  • Kathleen Quinn 3 months ago Appreciate your humor: 'mean w...

Yeah, I guess the Sadia Arabian religious police believe they are doing good to by cutting of heads, stoning, and beating women for not dressing in a full burka - all of which is under their laws. They probably mean well too. More wrong has been done in the name of "good" and passage of laws for the "good" of the people than anyone can retell.

The wisdom of man is only dwarfed by their folly. "We're the government and we're here to help".

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Appreciate your humor: 'mean well'. Let's see there's Well as in ' good health, good intention, etc.' Then there is 'the well' like 'the well of wealth'. Looks like another opportunity for the latter.

I love the way government presents personal intrusion as being in the interest of peoples well being.

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More deaths are caused each year by tobacco use than by all deaths from HIV, illegal drug use, alcohol use, motor vehicle injuries, suicides, and murders combined; or one of every five deaths in the US (from www.cdc.gov/tobacco). And I'm sure the less wealthy are disproportionately addicted.

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After smoking for 25 years, I switched to electronic cigarettes 6 days ago. Already, my lung capacity has increased so much that I went jogging today. E-cigs may not be healthy, but they have to be safer than tobacco. I am charting my progress at http://mrelixir.blogspot.com, for anyone interested.

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  • Douglas Goodman 3 months ago John, Congratulations....

  • Kathleen Quinn 3 months ago Way to go John! Your diligence has ...

  • Cameron English 3 months ago I just read your posts, John - awes...

John,
Congratulations.

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Way to go John! Your diligence has already served your well. Congrats!

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I just read your posts, John - awesome. You describe the same process I went through. Recovering my sense of smell, improved lung capacity and increased energy were all part of it. Blogging your progress is a great idea.

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