Well, that's the reality. Even if they didn't need more, they certainly can't handle getting less! I think their main problem with vaping is that it is TOO good, TOO popular, and TOO successful at getting people off the cigarettes. They've already factored in the sin-tax from cigarettes into the budget for the next 20 years, (Not kidding, look at the bonds that states have issued just from the Master Settlement, and how every smoker who quits makes it more likely those bonds will go south!)
Smokers quitting cigarettes (by any means) is a financial disaster for just about every state in the US. Particularly the big ones (like CA, who are so overextended in every area that the government controls, and aren't even going to be able to get water, and have no way out). Desperation causes desperate measures, which is the main reason you see so much opposition.
We can fight, or we can quit (smoking). But either way there are hard times ahead, financially most states are in real trouble, and so far nobody can find a way out.
(Here's a hint, why not tax <other stuff> at the same rate as cigarettes, or even higher, for those states who have made it legal?)
or better yet force states to down size its mismanaged governments and operate with in its budget. CA is a prime example of a very poorly managed state government.
I just built a roof over a water reservoir Its on top of a hill in San Rafael just a few very local people will see it yet they spent an extra 5 mill making the roof architectural vs industrial and practical.
I think the slippery slope of any sin tax should not be applied.