What’s Colorado Proposition EE: Tobacco and nicotine taxes


Proposition EE asks voters to approve a phased tax enhance on tobacco merchandise and a brand new tax on vaping merchandise similar to e-cigarettes. The tax on a pack of cigarettes, at the moment 84 cents, would enhance to $2.64 by 2027. Different tobacco merchandise’ taxes would enhance to 22% of the producer’s record value by 2027. Nicotine merchandise can be taxed 62% of the producer’s record value by 2027. Income would go towards public training, common preschool, and vaping cessation and academic applications.
The case for: Funding from the taxes would go to kids’s well being and training efforts and assist public training, which has been underfunded for years within the state. The tax on nicotine merchandise is seen as a strategy to no less than partly deal with Colorado’s teen vaping downside and the tobacco tax enhance as a strategy to curb grownup and teenage smoking. Larger taxes are anticipated to lower consumption.
The case towards: Small companies fear that approval of the measure would put them out of enterprise however preserve massive tobacco corporations up and operating. Tobacco taxes are likely to disproportionately have an effect on individuals from lower-income households. Some additionally argue {that a} recession isn’t the suitable time for a tax enhance. The income would lower over time and the state shouldn’t be counting on this supply for training funding, opponents say.
Poll query: “Shall state taxes be elevated by $294,000,000 yearly by imposing a tax on nicotine liquids utilized in e-cigarettes and different vaping merchandise that is the same as the whole state tax on tobacco merchandise when absolutely phased in, incrementally rising the tobacco merchandise tax by as much as 22% of the producer’s record value, incrementally rising the cigarette tax by as much as 9 cents per cigarette, increasing the prevailing cigarette and tobacco taxes to use to gross sales shoppers from outdoors of the state, establishing a minimal tax for moist snuff tobacco merchandise, creating a list tax that applies for future cigarette tax will increase, and initially utilizing the tax income primarily for public faculty funding to assist offset income that has been misplaced because of the financial impacts associated to COVID-19 after which for applications that cut back using tobacco and nicotine merchandise, improve the voluntary Colorado preschool program and make it extensively accessible free of charge, and keep the funding for applications that at the moment obtain income from tobacco taxes, with the state retaining and spending all the new tax income as a voter-approved income change?”


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