Is State Tax Rates Hiking Up The Price Of Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to regulate the sale of electronic cigarettes. While vaporizers have already been around for a long time and so are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made millions of dollars attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a fresh legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing happens to be being contested in the courts, and both sides expect an answer at some point soon.
State taxation uprights vaporizers by regulating their sale. It is estimated that about twenty states have uprights to sell vaporizer devices, including California, Colorado, D.C., Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. These states have grown rapidly in recent years, and as a result, their cigarette tax rates are also growing rapidly. Several same states likewise have placed taxes on cigar and pipe tobacco. It appears that smoking just gets more expensive, and that is what the tobacco industry is shooting for.
Based on the filing with the FDA, the tobacco industry is being targeted unfairly. The tobacco industry does everything they can to fight against regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled against the FDA over-regulation of cigarettes. These rulings have gone the door spacious to regulation of vaporizer devices. The FDA claims that over-regulation defeats the purpose of regulating and controlling the use of vaporizers.
The truth is that the FDA itself isn’t even necessary to regulate or control these industries. Only state governments have that authority. It’s the state governments that impose their very own taxes, and many states have imposed increased taxes in an effort to try to curb smoking. But the state governments are themselves at a disadvantage. They can not regulate wholesale prices since these prices are regulated by state laws. In addition they can’t tax the merchandise at a higher rate than the federal government does.
Also, the FDA itself isn’t directly involved in the manufacturing of the vaporizer. Tobacco companies manufacture their own products, and they are the ones that get sued by the states and levied taxes. The FDA merely approves podsmall.com or denies manufacturer licenses based upon whether these manufacturers follow federal law. And if the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices don’t get the advantage of having a federal regulator, or a manufacturer that is licensed by hawaii. So, instead, they find ways to increase taxes on the manufactures themselves! Which makes no sense. Why are these manufacturers being targeted specifically? There is no real reason.
THE MEALS and Drug Administration may be the federal body in charge of regulating pharmaceuticals, dietary supplements and cosmetics. It has the power to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states trying to tell the FDA to focus on Vaping online users rather than tobacco manufacturers? The FDA knows that regulating weight loss supplements isn’t likely to work because there are no controlled diet pills currently in the marketplace. And, even if there were, they couldn’t force food manufacturers to sell diet pills containing ingredients that are banned by state law.
So, instead, the states want to force the FDA to create some kind of rule or regulation that will require a manufacturer to market their devices in a specific manner, in accordance with state regulations. Which makes no sense at all. It also flies when confronted with the original purpose of the meals Drug and Administration Act. Why the FDA is targeting these devices is really a question that only experts in the FDA can answer.