Proposition EE will be on the November Ballot for Colorado voters.
This initiative was referred to the voters by the Colorado Legislature and approved by the Governor.
This initiative will not only raise taxes on tobacco sales, but also create a new tax for vaping products.
Of course, the proponents of this initiative want to curb smoking, and raise money for schools.
But there is something that the supporters of this initiative may have not considered.
When you raise taxes on a product, you are incentivizing the smuggling, and unlicensed sales of that product.
Not only that, but you are creating a demand for unlicensed and unregulated versions of those products.
And by doing so, you are potentially making those products less safe.
Remember last year, when vaping deaths were making headlines?
This outbreak in vaping deaths was linked by some to illegal weed vaping products.
Is it any wonder that states with legal weed reported fewer vaping illnesses?
Let’s get back to the smuggling argument.
At some point, if the price of buying legal (taxed) tobacco becomes too high, the rational consumer, if presented with the option, would buy illegal (untaxed or lower taxed) tobacco.
Not to mention, if the price is right, the risk can be worth the reward for the entrepreneurial tobacco smuggler.
Too much taxes, and tobacco become practically illegal.
Why? Because it is not profitable for a producer to sell tobacco above the market rate.
Is it any wonder that the States with the highest tobacco taxes are the states with the highest tobacco smuggling?
Over half of all cigarettes consumed in New York State are smuggled.
Speaking of New York, you may remember the horrendous murder of Eric Gardner back in 2014, which rightly led to protests and massive outcry.
And why did New York Police harass, and ultimately kill Eric Gardner?
Because he was accused of selling unlicensed cigarettes.
As the saying goes, “there is no crime so petty that government agents will not kill you to enforce it.”
Or better said, “Comply or Die.”
In a year where police violence is the reason for massive protests across Colorado, this message seems to be lost on all the Legislators who sent this bill to the voters.
In particular, Senator Rhonda Fields and Representative Yadira Caraveo, who just today penned an op-ed in support of this massive criminalization bill.
Senator Fields and Representative Caraveo would do well to remember to not support laws you are not willing to kill to enforce.
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