Summary Microeconomics Internal assignment - Sorry, Vermont vapers. E-cigarettes are about to get a lot more expensive
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Microeconomics
Institution
This document contains an example of a high-scoring Microeconomics internal assignment about Market failure stemming from E-cigarettes and proposed tax.
Sorry, Vermont vapers. E-cigarettes are about to get a lot more expensive
A hefty 92% tax on e-cigarettes will go into effect in Vermont on Monday, as Vermont joins a
handful of other states and cities cracking down on e-cigarette usage, especially among teens.
In fall 2018, the US Food and Drug Administration deemed youth e-cigarette usage an epidemic.
"E-cigs have become an almost ubiquitous ‒ and dangerous ‒ trend among teens," FDA
Commissioner Scott Gottlieb said in September 2018. " The disturbing and accelerating
trajectory of use we're seeing in youth, and the resulting path to addiction, must end."
State Rep. George Till said smoking is huge problem in Vermont. He is the primary sponsor of
the tax increase bill and a licensed physician who said he's been "fighting the tobacco war for
years."
According to Till, teen tobacco usage in Vermont is higher than the national average. He hopes
the tax increase will work to lower that rate.
"Youth are particularly sensitive to price and the goal here is to keep the kids from getting
addicted," Till told CNN on Friday. "The younger you start, the more likely you are to get
addicted."
The Vermont state legislature passed the bill back in February, expanding the tax on "all other
tobacco products." The tax will now effect any devices used for smoking or chewing tobacco,
primarily e-cigarettes, and any products sold as tobacco substitutes.
This new tax will not effect cigarettes or roll-your-own tobacco.
Prior to the passage of this tax bill, e-cigarettes were only subject to the state's standard sales tax
of 6%. This made e-cigarettes a cheaper option than traditional cigarettes, Till said.
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