I apologize for posting a link that didn't work earlier. I think this will work!!
Please see the latest issue of a vaping newsletter below that I received today from Americans for Tax Reform.
Volume 2 | December 6, 2016
Vapor News and Views
News and views on vapor tax and regulatory issues from across the United States. The best way to stay up to date with what's happening in Washington and in your state capitol.
Friends,
As we approach 2017, a few things are on our radar. The first remains assessing the strategy for modernizing the predicate date and reforming the Food and Drug Administration. Until personnel changes occur at the FDA and the timeframe for discussions on the 2017 budget are concrete, a lot remains up in the air.
Next, we're bracing for three major threats at the state and local level: Taxes, Tobacco 21, and Flavor Bans. In this News and Views, I've provided a map of which states considered and already do tax vapor products. Is your state next? Time will tell...
But read on! We've got continued leadership from Senator Ron Johnson (R-Wis.) and an announcement on the next Secretary of Health and Human Services, which oversees the FDA.
--
Paul Blair
State Affairs Manager
Americans for Tax Reform
Which States Tax Vapor Products?
In 2013, one state taxed vapor products at a rate of 75%. Today, five sates impose excise taxes on the products, with two more scheduled to take effect in 2017.
Those states include Minnesota, North Carolina, Louisiana, West Virginia, and Pennsylvania.
States with excise taxes scheduled to take effect in 2017 include Kansas and California.
15 states considered but failed to enact excise taxes on vapor products.
Click here to view a larger map that shows which states considered excise taxes this year and at what rate. And feel free to share!
Fun Fact: Minnesota is the only state with an excise tax imposed without a vote by the people or the legislature.
A decision by the state Department of Revenue on October 22, 2012 expanded the definition of tobacco products to include vapor products.
California becomes the second state to impose a tax without legislative approval next year due to voter passage of Proposition 56. There is a long history and precedent on the mechanism for taxing other tobacco products in California, but the state is entering new waters with a new type of "tobacco" that is actually produced in the state. We'll explore Proposition 56 in a future News and Views.
Congressman Tom Price Nominated as HHS Secretary
This past week, President-elect Trump announced the selection of Georgia Congressman Tom Price as his pick for Secretary of Health and Human Services (HHS). Price, an orthopedic surgeon was one of the first authors of legislation that would have replaced the Affordable Care Act/Obamacare with a more market-oriented solution. He also serves as the Chairman of the House Budget Committee and is a member of the powerful Ways and Means Committee.
As a Congressman,
Price responded to a request to co-sponsor House Resolution 2058 by saying,
"Fortunately, there are several alternatives out on the market to help those seeking a reprieve from cigarette smoking. It is vital that we continue to research and promote useful alternatives to help preserve the health of our nation."
It's not much, but it's not bad for now.
It's important to note that the head of the Food and Drug Administration doesn't directly report to the HHS Secretary, but there is a dotted line of oversight and authority, for what it's worth. While the relationship requires no top-down direction or guidance, it's likely the two will have a working and positive relationship.
It'll be some time before we hear more about who may head the FDA.
Senator Ron Johnson Doubles Down
In the last News and Views, I predicted that from Senator Ron Johnson we'd see "another follow-up letter to the FDA coming out very soon, this time with a focus on the outcome of the election and the message it should have sent to federal bureaucrats." I don't like to brag, but I was right...
Last week,
Senator Ron Johnson released a letter he sent to the FDA in his capacity as Chairman of the Senate Homeland Security and Government Affairs Committee. In the letter Johnson noted,
"On November 8, the American people voiced their disapproval of the type of government that ignore the input of small businesses owners, consumers, and job creators." Election reference: check.
He continued, "
In light of the significant economic costs on the e-cigarette industry and the substantial likelihood that the incoming administration and the 115th Congress will unwind this burdensome regulation, I call on the FDA to cease its implementation of the current regulation over e-cigarettes."Message to bureaucrats and possible action in the next Congress: check.
It's clear that Senator Ron Johnson isn't letting his foot off the pedal and one can hope that his colleagues are paying attention. A predicate date change is only possible with a broader consensus in the House and Senate. Don't expect much movement on the issue until the Spring though.
Hodgepodge to Sum It Up!
An emerging American embrace of reduced harm tobacco products that use nicotine?
The Truth Initiative just released a new paper entitled "Re-thinking nicotine and its effects," which you can find here.
Some of the top lines include the acknowledgement that nicotine is not known to cause cancer and that it actually has some positive effects on cognitive processes. The paper recommends the use of the FDA-approved Modified Risk Tobacco Products (MRTPs) to help smokers switch to less harmful alternatives. Progress.
Our friends over at Citizens Against Government Waste have a piece up at the Washington Examiner that's worth a read, here: "Tobacco harm-reduction: Big league health care savings."
And
check out this coverage of Vape a Vet's effort to highlight the negative effects of the deeming regulation on America's veterans.
Have suggestions on topics we should discuss in the future? Shoot me an email at
pblair@atr.org.
If you think this email was brief but informative please do forward to friends or colleagues who might be interested in Vapor News and Views!
Paul Blair | Americans for Tax Reform | 202-785-0266 |
pblair@atr.org |
www.atr.org
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