10
◼ AGENDA
● Taxinge-cigarettesis a goodwaytokeepyoungpeople
fromstartingthehabit◼BLOOMBERGOPINIONWrittenbytheBloombergOpinioneditorialboard ILLUSTRATIONBYARNEBELLSTORFThenumberofhighschoolstudentswhovapehasrisen
135%injusttwoyears,andthegovernmentdeservesmore
thana littleblame.TheU.S.FoodandDrugAdministration
hasdraggeditsfeetonregulation,andlawmakershave
resistedreformstomakee-cigaretteslessappealingtochil-
dren.GovernmentinactionhasjeopardizedoneofAmerica’s
greatestpublic-healthachievementsofrecentyears:the
drasticdeclineinteensmoking.
TheHouseofRepresentativescanhelpputthisright.It’s
abouttoconsidera taxone-cigarettes—apolicythat’slong
overdue.E-cigarettesaren’tsafe,thoughit tooka mysteri-
ousoutbreakofa lungailmentlinkedto 37 deathstograb
thecountry’sattention.OnNov.8 theCentersforDisease
ControlandPreventionidentified“oneverystrongculprit
ofconcern”initsinvestigationintothefatalities:a vitaminE
acetate,partofsomeTHCvapeproducts,thattendstoaccu-
mulateinthelungs.
Butevenbeforethatannouncement,thedangersof
vapinghighlevelsofnicotinewerewell-known.It’saddic-
tive,it strainsthecardiovascularsystem,andit’sespecially
dangeroustoyoungpeople.Inotherwords,weshouldbe
doingeverythingwecantodiscourageyoungpeoplefromMakeVapingExpensive
usingtheseproducts,justaswediscouragethemfrom
smokingcigarettes.
Whichmakesit shockingthattheyaren’ttaxedbythefed-
eralgovernment.TheWorldHealthOrganizationhascalled
tobaccotaxes“themostcost-effectivesolutionforreducing
tobaccouse.”Onaverage,every10%increaseintheprice
oftobaccocutsconsumptionby4%—andbyasmuchas7%
amongteenagers,whoaremoresensitivetoprices.The
nationwidedeclineinsmokinghasa lottodowithtaxation:
Asthefederalcigarettetaxrosesixfoldfrom 1990 to2014,
percapitausefellbymorethanhalf.
TheProtectingAmericanLungsActclearedanimportant
committeelastmonthandwillnowfacea fullHousevote.
It wouldtaxvapeproductsatthesamerateascigarettes—
adding$1.15tothepriceofa Juulpod,a 20%increaseover
themanufacturer’sretailprice.That’sa lowertaxthan
mostpublic-healthexpertswouldrecommend,butit’shigh
enoughtomakea dentinteenvapingrates.
Theproposalhasbipartisanbacking.SomeRepublicans
worrythattackling e-cigarettesisa politicalloser, but
recentpollingandRepublican-ledproposalsinArkansas
andKentuckysuggesttheirfearsaremisplaced.Other
statesandcitieshavepassedbillsraisingthetaxontobacco
productswithbipartisansupport.Thetruthisthatwell-
designedtobaccotaxesaren’ta partisanconcern:They’re
apublic-health necessity, supported by abundant research.
Finally, Washington seems to be taking the threat seri-
ously. It’s about time. <BW>On Nov. 21 in Los Angeles, Elon Musk unveils the latest
addition to Tesla’s growing fleet of models: the electric
Cyber Truck, a pickup with a design like something out
of the Blade Runner movies and more power than Ford’s
popular F-150.▶ At the Nov. 22-23 CDU
conference, Angela Merkel
will shore up support
for Annegret Kramp-
Karrenbauer, her chosen
successor as party leader.▶ On Nov. 20 the European
Central Bank releases
its semiannual financial
stability review, an
assessment of potential
risks facing the euro region.▶ Bankers and government
officials meet in Frankfurt
starting Nov. 18 for Euro
Finance Week. They’ll
discuss banking strategy,
tax reform, and compliance.▶ South Africa’s Naspers
reports earnings on Nov. 22.
Its fortunes are closely
linked to those of Chinese
web giant Tencent, in which
it holds a big stake.▶ On Nov. 20 the Federal
Open Market Committee
releases the minutes from
its Oct. 29-30 meeting,
when the Fed cut its main
rate a third time this year.▶ Target reports earnings
on Nov. 20, rounding out
a quarter in which retailer
results showed consumer
demand is still holding up,
despite a slowing economy.▶ A Pickup Truck for the Electric Age
Bloomberg Businessweek November 18, 2019