California Flavored Tobacco Ban May Cost More than $300 Million in First Year
California is losing tax revenue while consumers turn to cross-border purchases or, often, illicit trade of flavored cigarettes, which makes everyone worse off.
4 min readAdam Hoffer is the Director of Excise Tax Policy at the Tax Foundation. Dr. Hoffer earned his PhD in Economics from West Virginia University and his undergraduate degree from Washington & Jefferson College.
Prior to joining the Tax Foundation, Dr. Hoffer was the Menard Family Associate Professor of Economics at the University of Wisconsin-La Crosse and the inaugural Director of the Menard Family Midwest Center for Economic Engagement and Research. Dr. Hoffer was also a Bradley Freedom Fellow with the Wisconsin Institute for Law & Liberty and a senior editor with the Center for Growth and Opportunity at Utah State University.
Dr. Hoffer published 30 peer-reviewed academic journal articles and he is the lead author and editor of two books: For Your Own Good: Taxes, Paternalism, and Fiscal Discrimination in the Twenty-First Century and Regulation and Economic Opportunity: Blueprints for Reform.
He lives in La Crosse, Wisconsin with his wife and two children.
California is losing tax revenue while consumers turn to cross-border purchases or, often, illicit trade of flavored cigarettes, which makes everyone worse off.
4 min readEarlier this month, New York Governor Kathy Hochul (D) proposed increasing the state’s cigarette tax rate by $1.00 a pack, banning the sale of flavored vaping products, and ceasing the sale of all flavored tobacco products. If enacted, these policies would fuel black markets and create a fiscal hole for the state to fill, all while hurting New York businesses and consumers.
4 min readMost of the 2023 state tax changes represent net tax reductions, the result of an unprecedented wave of rate reductions and other tax cuts in the past two years as states respond to burgeoning revenues, greater tax competition in an era of enhanced mobility, and the impact of high inflation on residents.
20 min readWhile the wireless market has become increasingly competitive in recent years, resulting in steady declines in the average price for wireless services, the price reduction for consumers has been partially offset by higher taxes.
41 min readPeople respond to incentives. As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions.
19 min readLater this week, the European Union is expected to release a new Tobacco Tax Directive, the first update in more than a decade. Early reports indicate that the EU will propose a significant increase to the existing minimum cigarette tax rates levied across the Union and expand the product categories that are taxed, including a block-wide vaping tax.
7 min readRecreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 19 states have implemented legislation to legalize and tax recreational marijuana sales.
6 min readWhile changes to federal cannabis law are slow, changes at the state level are accelerating. Recreational cannabis is on the ballot in five states this November—Arkansas, Maryland, Missouri, North Dakota, and South Dakota—giving voters the ability to join 19 states that have already legalized recreational marijuana.
5 min readFrom income tax changes to cannabis legalization and taxation, here’s what voters decided on Election Day.
6 min readThe FDA’s proposal to ban flavored cigars would carry significant revenue implications for many state governments.
7 min readNew Jersey lawmakers should be weary of flavor bans after seeing the results in Massachusetts.
3 min read’Tis the season to crack open a cold one. Ahead of International Beer Day on August 5th, let’s take a minute to discover how much of your cash is actually going toward the cost of a brew with this week’s tax map, which explores excise duties on beer.
3 min readThe Netherlands has the highest gas tax in the European Union, at €0.82 per liter ($3.69 per gallon). Italy applies the second highest rate at €0.73 per liter ($3.26 per gallon), followed by Finland at €0.72 per liter ($3.24 per gallon).
5 min readIf the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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