UPDATE Feb 27, 2020: HR 4742 has been added to bill HR 2339, the bill spearheaded by Congressman Frank Pallone (D-NJ). HR-2339 was voted to move forward today, 210 v 200 – gaining bipartisan support. This bill still has some way to go, and the vote to pass the House and go to Senate is 2/28 9am. That said, with bipartisan support growing, and unlimited funding coming from Mike Bloomberg, vaping industry needs to remain vigilant.
The House Ways & Means Committee met today and started the process of pushing through HR 4742, which ended up getting a 24-15-1 vote. This is a bill that means to add a tax on nicotine vaping products at $0.0278 per milligram of nicotine. Many vapers might concede that a tax on vaper products may be ok “as long as the government is happy” but this is never true. The government is never happy. In fact, this comes on the heels of devastating legislation pushed by the House Energy and Commerce Committee, which ends up banning all flavors, banning online sales, and raising the age to 21, just to name a few. Our government officials are doing everything in their power to ensure they regain their lost tobacco revenue.
HR 4742 gained wide spread support with Democrats – with Republicans mainly opposing the bill. As tweeted by Greg Conley of the AVA
No surprise: At a hearing on *nicotine* taxation, Ways & Means Chairman @RepRichardNeal justifies the tax by bringing up lung illnesses caused by inhaling contaminated THC products. No THC product or device, legal or illegal, would be taxed by this bill. https://t.co/uRMfAPwhMY— Gregory Conley (@GregTHR) October 23, 2019
So what you’re reading is that one of the justifications for the tax was to limit lung injuries. As we know, illegal THC/CBD vapor products were solely to blame. The truth doesn’t matter anymore in the United States. You can knowingly lie and bend stats, so far they barely make sense, to push industries out and throw small business owners on the street. Disgusting state of the country.
So how much does the tax add?
As you can see, things get very expensive very quickly. In fact, let’s take a look at a liter of 100mg unflavored nicotine base. That now will cost an extra $2,780 dollars. An insanely prohibitive cost, that would surely drive black market prices sky high. I want to remind you that the time to learn to mix is now.