In a recent post that drew on my earlier work with Alex Brill and Sally Satel, I pointed out that e-cigarette taxes pose a threat to public health. Regrettably, the House Ways and Means Committee is now poised to consider a proposal (as part of subtitle I of the committee’s portion of the budget reconciliation package) that would impose a new federal e-cigarette tax. The committee should heed the mounting evidence that e-cigarette taxes have the deadly side-effect of increasing smoking.
The proposal would apply the federal tobacco tax to e-cigarettes for the first time. (The tobacco tax rate would also be doubled). Under the proposal, e-cigarettes would be taxed based on their nicotine content.
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