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