CNBC: E-Cigarettes: Escaping the Smoke

[cyberwolf]

Today on CNBC, there is a good article entitled E-Cigarettes: Escaping the Smoke . The tone is generally positive and it definitely doesn't spout any of the same old lies. What it does do is treat electronic cigarettes as exactly what they are, an alternative to smoking.

It's kind of a shame that Andries Verleur, the CEO of V2 has to cover himself by saying that "we don't want to say that our product is healthier," but he is given the opportunity to say that he and his customers see an improvement in their lives after making the switch. All in all it's good mainstream exposure.

 

[Insignificance]

Definitely good mainstream exposure.....thanks for the link.

 

[Hello World]

More articles are coming out more in favor of e-cigs, tax-related remarks often included too.

We're being prepped for it.

In countries where e-cigs are banned, health departments run after them, where regulated, the taxman.

Gov't dogs gotta have their cut, citing imaginary health reasons. Logistics is the only difference greasing cops in lesser developed republics. What system of fraud do you prefer?

 

[Petrodus]

The FDA might be caught between a rock and a hard place

BP (FDA's employer) ... wants e-cigs off the market
The Tax Man wants to Sin Tax them

Mmmm ....

 

[cyberwolf]

It's terrible when more taxes look like the good alternative...

 

[vaprpunk1987]

the problem is in the first quote from the v2 ceo. . "We are not yet a regulated industry, and being unregulated, there's a cost savings because there's no taxes," he said. "I expect that we'll do more than $80 million in net sales this year." there ya go $80 mil in untaxed revenue doesnt fly in this country. bottom line.

 

[NorthOfAtlanta]

the problem is in the first quote from the v2 ceo. . "We are not yet a regulated industry, and being unregulated, there's a cost savings because there's no taxes," he said. "I expect that we'll do more than $80 million in net sales this year." there ya go $80 mil in untaxed revenue doesnt fly in this country. bottom line.

Not quite true, it is taxed as a normal business just no sin taxes. I own a normal business and believe me when I say taxes are a large p&l entry.

 

[FloridaNoob]

I would say unless they can find documentation that supports PV devices causing health issues like analogs they won't be able to float a sin tax on them.

 

[NorthOfAtlanta]

I would say unless they can find documentation that supports PV devices causing health issues like analogs they won't be able to float a sin tax on them.

Watch, they contain evil nicotine and those evil ex-smokers enjoy them. The ANTZ will find a way with a little help from the local, state and national governments that would go broke with out the tobacco cash cow.

 

[vaprpunk1987]

Not quite true, it is taxed as a normal business just no sin taxes. I own a normal business and believe me when I say taxes are a large p&l entry.

you are correct. they are taxed just not taxed "enough" or the "right" way. either way there is room for more taxation so more taxation is what we are gonna get.

 

[vaprpunk1987]

also, they are taxing the business not the consumer. the government wants to tax the consumer.

 

[NorthOfAtlanta]

also, they are taxing the business not the consumer. the government wants to tax the consumer.

This is what politicians want people to believe, taxes are just another line in the budget that will be collected from customers and passed on to the government.

 

[Audio Weasel]

also, they are taxing the business not the consumer. the government wants to tax the consumer.

The government wants to tax everybody they possibly can. I'm surprised my cockatiels don't have to fill out 1040's at this point.

 

[Petrodus]

The government wants to tax everybody they possibly can. I'm surprised my cockatiels don't have to fill out 1040's at this point.

I thought they said they said they were
only going to tax the rich a little bit more...
Not the middle class ??!!

I must have just heard wrong ??

 

[jkos]

The very wealthy Americans dont pay the 40% percent tax. The income of the wealthy comes from their investments which would be capital gains, Capital gains are taxed at a lower rate. So when Obama Raised the rates most of the Big Boys don't care about the tax increase. The less fortunate, You and I that have switched to vaping are saving money and their health, will be hit again with a sin tax. It's been said over and over it looks like you're smoking TAX IT!!!

 

[RPadTV]

It's kind of a shame that Andries Verleur, the CEO of V2 has to cover himself by saying that "we don't want to say that our product is healthier," but he is given the opportunity to say that he and his customers see an improvement in their lives after making the switch.

Well, you can't expect him to say that his product is healthier. There are all sorts of legal implications for making such a claim.

 

[Jarski44]

This is what politicians want people to believe, taxes are just another line in the budget that will be collected from customers and passed on to the government.

While you are essentially correct, it's not 100%. How much tax is passed on depends on the elasticity of demand, the more inelastic, the higher the percentage of taxes passed on. That's the reason so much of the tax on cigarettes and gas are passed on, these goods have pretty inelastic demand, at least in the short run.

I would speculate that juice has a pretty inelastic demand, so taxes would essentially be passed on.

 

[NorthOfAtlanta]

While you are essentially correct, it's not 100%. How much tax is passed on depends on the elasticity of demand, the more inelastic, the higher the percentage of taxes passed on. That's the reason so much of the tax on cigarettes and gas are passed on, these goods have pretty inelastic demand, at least in the short run.

I would speculate that juice has a pretty inelastic demand, so taxes would essentially be passed on.

As I said, a business has one source of income, unlike the government they cannot use a gun to get money. All taxes charged to a business are collected from customers and passed on to the local, state and national governments. This includes income, fica, medicare and any other tax that a business pays.