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The Tobacco Tax Equity Act of 2021 Is a Blunt Instrument


The Tobacco Tax Equity Act of 2021 Is a Blunt Instrument
The Tobacco Tax Equity Act of 2021 [1], introduced by U.S. Senate Majority Whip Dick Durbin (D-IL) and Senate Finance Committee Chair Ron Wyden (D-OR), with U.S. Representative Raja Krishnamoorthi (IL-D-08), seeks to raise the federal tax on cigars, pipe tobacco, smokeless tobacco and alternative nicotine delivery systems (ANDS) to match the tax on combustible cigarettes.[i] [2] From a harm reduction perspective, this strategy is too blunt of an instrument.
Harm reduction recognizes that people will, inevitably, engage in behaviors that may be risky and seeks to provide alternatives that reduce the risk associated with these behaviors. A harm reduction approach to tobacco product taxation involves ensuring that taxation levels are proportionate to the health risks of the product. This creates an incentive for people to choose less harmful products. Since the Tobacco Tax Equity Act of 2021 seeks to equalize taxes on a ....

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Indiana lawmakers set to decide next two years of state spending over next two weeks


“I’ll see you in heaven.”
It was the last thing Al Braccolino, 90, of Crown Point, told one of his daughters as paramedics loaded him into an ambulance Nov. 16. COVID-19 forced him into the final fight of his life.
Ten days later, the chair Al usually occupied at the Thanksgiving table would sit empty. The husband to his wife of 70 years, father of three and grandfather of six died on the holiday.
Al’s daughter, Sandra Noe, was herself suffering from COVID-19, which she contracted while caring for her sick parents, when the virus forced Al’s hospitalization.
Noe, 66, is no stranger to helping elderly shut-ins weather isolation. ....

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Mississippi Income Tax Reform: Details & Evaluation


Source: State statutes; Bloomberg Tax.
Under House Bill 1439, in tax year 2022, the personal exemption would increase to $47,700 for single filers, $95,400 for joint filers, and $46,600 for head of family filers. This large offset, which immediately eliminates about two-thirds of all individual income tax collections, would be paid for through higher sales taxes.
In each year thereafter, the exemption would increase contingent upon revenue growth. Specifically, each year, the state would determine the amount by which the prior year’s tax collections from recurring revenue sources grew above inflation compared to the year preceding it. The income tax phases out subject to revenue availability, not on a strict schedule. According to the bill sponsor, if revenue grows according to projections, the individual income tax would be phased out in its entirety after approximately 10 years, with fewer and fewer Mississippians paying individual income taxes over time. As Speaker G ....

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Legislative roundup, Feb. 24, 2021

Feb. 24—Days remaining in session: 24 Cigarette tax and other taxes: A bill that would add $2 to the price of a pack of cigarettes received its first hearing Tuesday before the Senate Tax, Business and Transportation Committee. But the committee took no action and held Senate Bill 197 as part of an effort to have a larger discussion on all legislation involving taxes. "They want to corral all . ....

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