Rendez-vous #24 with Lindsey Stroud
Moreover, this year we’re seeing a lot of taxation, some of it that is blatantly a revenue grab and some introduced to “combat youth vaping.” I looked at the numbers for Pennsylvania, which imposed a 40 percent wholesale floor tax in 2016. Pennsylvania conducts bi-annual surveys of PA youth (Pennsylvania Annual Youth Survey) and I found that vaping among high schoolers actually increased from 2015 to 2017, indicating that taxes don’t act as a deterrent against youth vaping use.
I think at this point, there is a lot of alarmism related to the erroneously titled “youth vaping epidemic,” that is driving really bad legislation. And a lot of it will have a great impact on brick-and-mortar, “mom and pop” retailers despite the fact that FDA tobacco compliance data finds convenience stores a significantly larger proportion of tobacco sales
I think many lawmakers erroneously believe that Big Tobacco introduced e-cigarettes to get kids hooked to nicotine and eventually combustible cigarettes, but that couldn’t be further from the truth. E-cigarettes were first introduced in 2007. It wasn’t until 2012 that a tobacco company (Lorillard) purchased an e-cigarette company (Blu eCigs). Essentially, the tobacco industry was forced to respond to this consumer-driven disruptive technology as smokers demanded safer alternatives to traditional cigarettes.
There does seem to be a lot of issues in the industry in America and a lack of cohesion among various groups, but that has always existed. The only issue is that this year, it seems to be more apparent as there are over 200 bills in state legislatures that introduce taxes, prohibitions and regulations including Tobacco-21. The state associations are doing an amazing job at working against these, and in the few cases, for the good bills, but it definitely is going to have to take a lot more work to educate lawmakers on the benefits of e-cigarettes. Like I mentioned above, many lawmakers erroneously believe that e-cigarettes are just as harmful as combustible cigarettes and that Big Tobacco just wants to get people addicted. Unfortunately, America only has about 3 million smokers that have used e-cigarettes to quit smoking, and over 34 million American adults that continue to smoke, and more Americans are believing that e-cigarettes aren’t less harmful. It is imperative that stakeholders in the industry, whether they own a manufacturing company or a small Mom-and-Pop vape shop, or even if they’re just a former 40-year smoker who have used e-cigarettes to quit smoking – they all need to educate policymakers that are deciding legislation.
Tobacco Harm Reduction for Life (THR4Life) is a 501(c)3 that seeks to educate smokers on tobacco harm reduction – including smokeless tobacco and snus, e-cigarettes, and even nicotine replacement therapy. Tobacco harm reduction is tobacco harm reduction and all products should be recognized for their potential to help people quit smoking. We seek to educate persons in all 50 states and follow local, state and federal legislation. I was not involved in the creation of it, that would go to President Kevin Price. I joined about a year after THR4Life was founded. Other board members include Kevin Crowley, Skip Murray, and Jen Hoban.
Youth vaping must be addressed, the U.S. Food and Drug Administration has pretty much declared a war on e-cigarettes until the number of youth using e-cigarettes decreased. One would think that legislation introduced this year would help deter youth from using e-cigarettes, it doesn’t. For example, many of the state bills increasing the age to purchase tobacco products (including e-cigarettes) from 18 to 21 year of age do not include penalties to minors in possession of said tobacco products. Similar issues with kids using e-cigarettes in schools – most (if not all) US high schools have a zero-tolerance policy when it comes to possessing alcohol on school grounds, yet there is no real punishment when students are caught with cigarettes and vaping devices.
Another bad piece of legislation is this idea that taxing e-cigarettes will make kids less likely to use e-cigarettes. Lawmakers fail to understand that most kids obtain tobacco products by relying on a person that can legally purchase the product to obtain it for them, often at a higher price than that product. As mentioned before, the 40 percent wholesale floor tax in Pennsylvania did not help stop youth e-cigarette use, but it did, however, such down 120 vape shops in the Commonwealth, or a third of Pennsylvania’s brick-and-mortar vape retail shops.
Unfortunately, while dealing with state legislation, e-cigarette manufacturers still must comply with the FDA’s deeming regulations, including their findings of harmful and potentially harmful constituents in the next year and submitting their premarket tobacco product applications by August 8, 2021. What e-cigarette companies do then will really determine the future of the e-cigarette industry.
I’m always optimistic, just not looking forward to the increasing number of bad legislation.
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