The Honorable Gael Tarleton
Chair, House Finance Committee
John L. O’Brien Building
Olympia, WA 98504
Dear Chair Tarleton,
On behalf of National Taxpayers Union (NTU), the nation’s oldest taxpayer advocacy organization, I write to express our strong opposition to HB 1873, which is currently before your committee. This misguided legislation would dramatically raise taxes on products that help traditional tobacco users transition to less harmful vapor and Heat-Not-Burn products. If enacted in its current form, HB 1873 would lead to reduced health outcomes and a higher tax burden for many Washington consumers. We urge you to stand with taxpayers and reject this misconceived tax hike.
HB 1873 attempts to lump vapor products with other tobacco products, despite a clear distinction between the two. Vapor products contain no tobacco; they contain nicotine without the harmful chemicals found in traditional tobacco products. HB 1873 would amend the definition of an “Other Tobacco Product” (OTP) to include vapor products, inappropriately subjecting them to the same state regulations and taxation as non-cigarette tobacco products, levied at 95 percent of the wholesale price. This is an ill-advised approach to addressing public health concerns for tobacco users.
This legislation is proposed at a time when some estimates indicate vapor products are 95 percent less harmful than traditional combustible cigarettes. Vapor products have emerged as an innovative and effective bridge for smokers transitioning toward a significantly less harmful alternative. Policymakers should oppose policies like HB1873 that ultimately raise barriers to healthier choices and also derail efforts to lower health care costs and reduce government spending
Some supporters of this legislation might view it as an easy way to to boost state coffers. However, lawmakers should be aware that taxes on tobacco and tobacco-related products usually yield vastly lower revenue than is projected. A 2013 study by NTU’s research arm, National Taxpayers Union Foundation, found that revenue projections were met in only 29 of 101 cases where tobacco-related taxes were raised between 2001 and 2011.
Due to the many problems with HB 1873, NTU strongly believes this proposal would harm Washington consumers far more than it would help them. Accordingly, we encourage you to keep these concerns in mind as you hopefully work toward a more fiscally responsible future for Washington taxpayers and consumers.
Sincerely,
Thomas Aiello
Policy and Government Affairs Associate