The Joint Finance Committee may vote on Tuesday, May 31st on a proposal to change the tax on moist snuff tobacco products to a weight-based tax. Currently, all non-cigarette tobacco products are taxed using a percentage-of-price tax which applies the same tax rate to every tobacco product and brand of product, maintains a level playing field, and increases automatically as the price of the product increases. WCCF strongly opposes such a change, especially because of the harmful effects of tobacco usage by Wisconsin youth.
Higher prices discourage kids from buying tobacco products. They are effectively priced out of the addiction before they even start. However, this change in tax would allow the new generation of super lightweight moist snuff products to be under-taxed, giving them an advantage in the marketplace. Smokeless tobacco products can also manipulate the weight of their products, making them more affordable to kids. These weight-based taxes don’t keep pace with inflation, leading to relatively cheaper products and the erosion of smokeless taxes over time.
Weight-based taxes don’t serve the intended purpose of causing smoking cessation and discouraging kids from picking up the deadly habit in the first place. Because all smokeless products aren’t taxed the same, users may just switch to other brands or products instead of quitting. In fact, smokeless products are marketed to appeal directly to kids, through fruit flavors and candy-like packaging. US Smokeless Tobacco’s (UST) best-selling premium smokeless tobacco products are among the most popular with youth. By reducing the taxes and prices on these brands, weight-based taxes supported by UST and Altria directly increase youth smokeless initiation and use by making these products an attractive and cheaper alternative to cigarettes.
Higher tobacco taxes are good for the fiscal and physical health of Wisconsin. Higher tobacco taxes increase state revenues and lower health care costs. It’s a win-win solution. Let’s not change the tax structure in a way that will encourage more kids to pick-up an addictive, cancer causing, smokeless tobacco habit.
Sara Eskrich
