E-Cigarettes have become the target of new state taxes in places like Wisconsin and Vermont. Although some experts believe that the tax will reduce teen vaping, others think it could simply lead to a vaping black market, reports NEPR.

Since 2015, the use of e-cigarettes amongst middle school and high school students has “significantly increased,” according to the Vermont Department of Health. Vermont reflects a national trend: vaping has increased and the use of other drugs has declined.

On July 1, Vermont placed a 92% tax on e-cigarettes. Although customers may not need to pay a 92% tax when paying for new cartridges or other vaping materials, retailers will have to pay extra to carry these items. Eventually, customers will have to pay more.

A UVM economics professor, Nathalie Mathieu-Bolh, says that higher tobacco taxes do usually reduce use. She also says that if a black market develops, it will not be particularly large.

Education about vaping’s harmful effects is not enough anymore. She says taxes are “still the best tool we have to reduce cigarette smoking among the youth.”

Read the full story here.


Economics, Finance and Investing