Regressive 36% Sin Tax on E-Cigarettes Proposed In Illinois

[Robert T. Tan]

Illinois is looking for a piece of the e-cigarette business to make up for declining tobacco tax revenues. Unlike the regressive and failed Illinois soda tax, this one will be on wholesalers rather than point of sale.

The $10 million dollars in receipts won't plug any budget holes but might drive smokers away from vaping.

https://www.vapor4life.com/blog/illinois-ecig-sin-tax/

 

[Opinionated]

Illinois is just jumping on the excise tax train.

atm DC has a 67% excise tax on all vape products, Vermont is about to put into place a 96% excise tax (if I remember correctly), and several more states have done / are doing the same.

Illinois is mild if they are only attempting to implement a 36% tax..

They are taxing e-cigarette products to make it as expensive if not more expensive than smoking. Kind of like "organic" food products. Some day vaping will cost more because it's healthy, shorthand for the government is angry because people might live longer, so you have to pay for the privilege.

 

[Robert T. Tan]

The 36 percent tax is just on wholesale too. They project $10 million dollars in receipts. Compared to the state's pension crisis, that is a rounding error.