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A proposed levy on smokeless tobacco is a fine idea, but not if it is based on weight.
Jump to full article: Philadelphia (PA) Inquirer, 2009-05-22
Author: Joy Blankley Meyer
Intro: Like every other state, Pennsylvania has a tax on cigarettes. Unlike most other states, Pennsylvania does not tax other tobacco products - including cigars, bidis, snus, and snuff.
Fortunately, Gov. Rendell has taken a huge step in the right direction by proposing to close this loophole and start taxing these other tobacco products.
Unfortunately, the proposal is flawed. In his 2009-10 budget, the governor has proposed a tax based on the weight of the products. But the weight-based tax could actually boost profits for some of these products. Is that the goal of a tobacco tax? Not so much.
Fortunately, Rendell can fix this flaw easily. Instead of taxing such tobacco products based on their weight, the state should base the tax on a percentage of the wholesale price.
Some tobacco companies are pushing for a weight-based tax to help wipe out their competition and get kids addicted to a whole new generation of smokeless tobacco products. That's because they are now selling ultralight tobacco products that are smokeless, spitless, and able to dissolve in the mouth like candy.
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