Smokers Looking for Better Alternatives Shouldn’t Have to Burn Cash
Families across the country are feeling the effects of inflation, an increased cost on common goods, in part a byproduct of gridlock and bad policy in Washington, D.C. Thankfully, North Carolinians are fortunate to have state leaders who have enacted pro-growth, pro-business-and most importantly, pro-taxpayer policies over the last decade.
It’s odd then that some in state Republican leadership want to slap North Carolinians with a brand-new tax that’s tucked away in a budget bill.
Senate and House members are currently hashing out their differences for a two-year state budget. Cutting personal income taxes and increasing salaries for teachers grab all the headlines, but unseen is a new tax that would make it harder for North Carolina smokers who want to make a better choice afford that choice.
The Senate quietly sneaked a proposal into its budget that adds a new tax on alternative nicotine products and changes the way it taxes oral smokeless tobacco. Technically the General Assembly is just switching from a cost-based to a weight-based tax structure. It sounds like a wonky term only an accountant would love, but it could cause some North Carolinians to dig even deeper into their pockets at the cash register. And worse, it will cost taxpayers $400,000 per year, according to an analysis by the North Carolina General Assembly.
Raising taxes on oral smokeless tobacco and innovative nicotine products is just bad public health policy. The U.S. Food and Drug Administration has recognized, after years of scientific review, that some of these products are appropriate to promote public health. These products either reduce the risk of disease associated with smoking cigarettes or reduce a smoker’s exposure to the harmful chemicals found in cigarette smoke for smokers who completely switch to them.
Tobacco use remains the leading preventable cause of early death and disease in North Carolina and the nation. Given the Tar Heel State’s percentage of adults who smoke traditional cigarettes remains significantly higher than the national average, any proposal that increases taxes on nicotine choices that are a better option than sticking with cigarettes is bad for public health. Tax policy should leave more money in wallets and free people to make choices. The General Assembly is on course to do the exact opposite.
Taxing products relative to the harm they pose to individuals is a commonsense strategy. This new tax on alternative nicotine products directly increases the price of products that hundreds of thousands of North Carolinians could choose instead of buying another pack of cigarettes.
While there are certainly differences conference committee members should work out, the House is right to exclude this proposal from their budget. I hope the Senate does not move forward with a provision that increases taxes, disincentivizes smoking alternatives and hurts North Carolina taxpayers.
Senator Phil Berger and Speaker Tim Moore have led North Carolina’s comeback, and we should stay the course on enacting fiscally responsible, pro-growth policies that benefit all in the Tar Heel State.
Dee Stewart, President, Americans for a Balanced Budget