E-Cigarettes & Taxes

uncle-sam-taxesThere has been so much talk and rumors abound for a while regarding e-cigarettes, ranging from what sort of regulations we will be seeing from the FDA, and what the government plans on doing about taxation. We all know this has been a hot button issue for so many reasons, as electronic cigarettes and other alternative smoking products have completely changed the landscape of smoking. Here’s what is presently occurring in the US regarding taxes on e-cigarettes, and what we can expect in the future.

Many e-cigarette users fear that their popularity will encourage lawmakers to seek higher taxing of the products due to their displacing of traditional cigarettes, which have always brought in millions upon millions of dollars. This would drive the price of the products up in a drastic way, making them unaffordable to many. To this point, cities and states have been on their own to decide how electronic cigarettes should be taxed. Some have instituted excise taxes, however there is still pressure from lobbyists, anti e-cigarette groups, city and state policymakers, among other special interests groups who are seeking to tap into the ability of taxing electronic cigarettes in the same manner as traditional cigarettes.

The problem with that, however, lies in the fact that alternative cigarettes are not tobacco products, and they contain no tobacco. Many sates, such as Hawaii, Utah, and Oklahoma, have attempted implementing taxes, but they have been met with failure. Other states are still contemplating such moves, seeing the immense potential of bringing in billions of dollars.

While the future remains to be seen, it seems as though taxation is going to be inevitable in some way or another. Like all forms of profit, taxes are just part of the big picture, however we can only hope that things are done in all fairness.