WI Governor to Veto Tax Change for Smokeless Tobacco

[kristin]

Need some feedback for CASAA!

Governor to Veto Tax Change for Smokeless Tobacco - WBAY-TV Green Bay-Fox Cities-Northeast Wisconsin News

What do you guys think of this? I read someone complaining on a snus forum that if it had gone through, they would have had to pay MORE in taxes on snus with the proposed weight-based tax. However, harm reduction advocates say it would actually make it cheaper. The "proponents" of the current tax system claim "current price-based system ensures all such products are taxed equally."

What's true?

And has anyone in WI seen if this actually did get vetoed?

Just want to know which side of this CASAA should be to help snus/smokeless remain affordable.

 

[firechick]

Kristin,
Stubby's the guy for this question. Great heads-up!

 

[hittman]

I vote for Stubby too.

 

[kristin]

Yeah, I'm hoping Stubby stops by and puts in his 2¢!

 

[rothenbj]

Stubby surely would be aware of the issues and more than likely the weight tax would be cheaper since, from what I have read WI has an ungodly tax on snus. I can't remember but I'm thinking better than 50% of mfg's price. Any weight based price would seem an improvement.

 

[Stubby]

I was following this closely. The whole thing was a very mixed bag. First off our illustrious Governor did veto this so the whole thing is null and void.

Not that it would have made much difference. Right now WI has the highest percentage smokeless tobacco tax in the country at 100% of wholesale. The new tax would have been $1.76 an ounce, among the highest in the country. I'm not quite sure which is worse. Cheaper smokeless would have been a bit more expensive, while premium stuff perhaps a bit cheaper, but not by much if at all.

If you use loose snus it would have been a big hit in the wallet as los snus is 45 to 50 grams a can while regular portions are 24 grams a can with a few being 20. I'm talking about Swedish snus of course. The wholesale price for both is about the same so los users would have been paying a lot more.

The anti-tobacco zealots were making up a bunch of bogus scenarios about how it was a grave danger to the children and all the usual junk they put out, but in reality it would have made little to no difference overall, with a few things a bit cheaper a few others a bit more expensive. I was pretty ambivalent about the whole thing.

Of course the real crime is that either way WI has insanely high ST taxes. This can be a big discouragement to folks switching from smoking to smokeless.

 

[rothenbj]

I knew the tax was ungodly, but that is truly ungodly! No wonder there are black markets.

 

[kristin]

Thanks, Stubby. I feel a little more knowledgable now, lol! It's a shame that Gov. Walker was snookered by the anti lies, but it sounds like the proposed change wouldn't have done too much for harm reduction anyhow.