A new study from researchers at George Washington University and Stanford University is indicating that e-cigarette restrictions would have devastating effects on the health of young adults. Just last week, the highly esteemed Journal on Nicotine & Tobacco Research accepted an article manuscript that examines the potential impacts of vape prohibitions on cigarette and vaping use among 18-34 year olds. According to the study, a ban on flavored vaping products would cause 33.2% of young adult e-cigarette users to completely switch to traditional cigarettes and 39.4% would switch to cigarettes should all vape sales be restricted. 

The researchers noted that there are likely unintended consequences of restrictions on vaping. These include e-cigarette users switching to traditional cigarettes and youth initiation of traditional cigarettes rather than vaping products. Anti-vaping laws are often framed as legislation that will improve the health of young people, but ample evidence is emerging that demonstrates such laws have an opposite effect. 

In San Francisco, a ban on flavored tobacco products led to stark increases in youth smoking rates and more than doubled the odds of young people engaging in the deadly habit of cigarettes smoking. E-cigarettes have been shown to be at least 95% less harmful than traditional cigarettes, therefore, use of e-cigarettes among young adults, which should be discouraged, is clearly preferable to cigarette use. 

The concerning findings from this most recent study are a critical addition to the ever-growing academic and scientific literature on vaping and tobacco use and should be acknowledged by lawmakers who seek to implement restrictive measures on e-cigarettes. The main findings of the study can be read below, while the full study is available here. 

Key Findings: 

• If the sale of flavored vaping products was prohibited, 33.2% of young adult e-cigarette users would “very likely or somewhat likely” switch to traditional cigarettes. 

• An additional 14.9% of users would switch to cigarettes while continuing to use e-cigarettes.  

• If all vape product sales were restricted, 39.4% of e-cigarette users would likely switch to traditional cigarettes. 38.9% of e-cigarette users reported not at all likely to switch to traditional cigarettes. 

• Survey participants who viewed a greater number of media reports about vaping, which spread misinformation and often use fear-based messaging, were more concerned with the health impacts of vaping and more likely to support restrictive vaping laws. 

The researchers, four of whom work at George Washington University’s Milken School of Public Health and one from Stanford University School of Medicine, utilized data from over two thousand survey respondents from six metropolitan areas in the United States. The locations (Atlanta, Boston, Minneapolis, Oklahoma City, San Diego, and Seattle) were selected due to variation in state policies regarding e-cigarettes and tobacco products. San Diego and Boston have stringent measures in place, while Oklahoma City and Atlanta have largely avoided implementing restrictive policies.  

The group most supportive of restrictive vaping laws is parents of teenage children. They falsely believe that such laws would keep their children safe and improve the health of young adults across the country. The findings of this study, paired with real-world evidence from San Francisco, show that bans on vape sales will do significantly more harm than good.  

While the researchers did not go so far as to declare restrictive vape laws as harmful to public health, they did state that young adult users of e-cigarettes “may not experience benefit” from these policies.  

Understanding the potential impacts of public policy is crucial. While more research should, and will, be done to further examine the impacts of bans on various e-cigarette products, the evidence is growing clearer. The laws that legislators claim are necessary to “protect the children” are increasing cigarette consumption among young people and subjecting them to immense amounts of harm. In the interests of public health, these laws, and those who spread lies and misinformation to promote them, must be thoroughly rejected.

Senator Todd Young (R-Ind.) has introduced S. Amdt #3444 to S.Con Res. 14, the Fiscal Year 2022 Budget Resolution. This amendment would ensure Democrats keep the Biden pledge to not raise taxes on Americans earning less than $400,000. ATR urges Senators to support and vote YES on this amendment. 

President Joe Biden and Vice President Kamala Harris have repeatedly pledged to every American making less than $400,000 that they would not raise a single penny of their taxes. Biden and Harris made the pledge at least 60 times.

Unfortunately, the $3.5 trillion reckless, tax and spend plan being pushed by Biden and Senate Democrats raises taxes on Americans earning less than $400,000 per year.

A new report by the Joint Committee on Taxation released earlier this week found that raising the corporate tax rate to 28 percent, as proposed by Democrats, would raise taxes on American workers and retirees.

Almost 60 percent of the tax would be borne by taxpayers making less than $500,000. Of those impacted by a 28 percent corporate income tax hike, 98.4 percent earn less than $500,000.

The analysis also detailed how low- and middle-income Americans have a stake in the success of U.S. corporations through ownership of stocks, bonds, pensions, IRAs and other retirement accounts. There are 107.8 million U.S. taxpayers with ownership stake in U.S. corporations, 97.7 percent of which earn less than $500,000 a year.  

In addition, an analysis by the left-of-center Tax Policy Center found that the tax hikes proposed in President Biden’s budget will raise taxes on 74.1 percent of middle income-quintile households in 2022.

Clearly, Democrats are lying when they claim their tax hikes will not impact Americans earning less than $400,000. Raising the corporate tax would harm millions of middle-class American families by increasing the cost of goods and services, decreasing wages and the availability of new jobs, and reducing the value of stocks, 401(k)s, and other investments. ATR urges all Senators to vote YES on Senator Young’s important amendment.

Senate Republican Whip John Thune (R-S.D.) has introduced S. Amdt #3106 to S.Con Res. 14, the Fiscal Year 2022 Budget Resolution. ATR urges Senators to support and vote YES on this amendment. 

This amendment would preserve step-up in basis, preventing Democrats from creating a Second Death Tax. 

Repealing step-up in basis would impose the capital gains tax on the unrealized gains of every asset owned by a taxpayer when they die and will be imposed in addition to the existing 40 percent Death Tax. 

Repeal of step-up in basis would create new complexity for many taxpayers including family-owned businesses. It will force predominantly family-owned businesses to downsize and liquidate assets, leading to fewer jobs, lower wages, and reduced GDP.  

As noted by the Ernst and Young study, a repeal of step-up basis would increase the cost of capital and discourage new investment. This negative economic impact will cost 80,000 jobs each year for the first ten years, increasing to 100,000 jobs each year thereafter. One third of the tax will also fall on American workers in the form of lower wages.  

Repealing step-up in basis has already been tried and failed. In 1976 Congress eliminated stepped-up basis, but it was so complicated and unworkable it was repealed in 1980 before it took effect.  

If lawmakers are serious about protecting family-owned businesses and farms, they should vote YES on Senator Thune’s amendment.  

Increasing the corporate income tax would disproportionately harm American workers, retirees, and small businesses, according to an analysis performed by the non-partisan Joint Committee on Taxation (JCT). The report, which was released by Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and House Ways and Means Ranking Member Kevin Brady (R-Texas) found within 10 years, 169 million taxpayers earning less than $500,000 or less will bear the burden of the corporate tax increase.

President Biden's FY 2022 budget proposed 29 tax increases on top of the 28 percent corporate tax proposal, including a global minimum tax, doubling the capital gains tax, creating a Second Death Tax, and more. In the Senate Democrat's $3.5 trillion plan, many of these tax hikes will be included. 

Small businesses and working families would be hit by Biden’s plan to raise the corporate tax rate. About 1.4 million small businesses are organized as C-corporations, meaning they are hit directly by an increase in the corporate income tax.

Under a 28 percent corporate tax, as President Biden has proposed, almost 60 percent of the tax would be borne by taxpayers making less than $500,000. Of those impacted by a 28 percent corporate income tax hike, 98.4 percent earn less than $500,000. 

“This study supports what we’ve long known--corporate tax hikes are primarily borne by workers and retirees, and certainly the middle class--those making well below $400,000 a year,” Sen. Crapo and Rep. Brady explained.  “America’s health and economic recovery remain very fragile, and may get worse again before getting better.  Unemployment is still too high and inflation is a real concern.  Now is not the time to raise taxes on the very people we are asking to lead us out of this crisis.”     

The analysis also detailed how low- and middle-income Americans have a stake in the success of U.S. corporations through ownership of stocks, bonds, pensions, IRAs and other retirement accounts. There are 107.8 million U.S. taxpayers with ownership stake in U.S. corporations, 97.7 percent of which earn less than $500,000 a year.  

These findings should not come as a surprise. Several studies have previously proven that corporate tax hikes will increase consumer prices, reduce workers’ wages, and cost the economy jobs: 

• According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax in the form of wages and employment. As Entin notes, 50 percent, 70 percent, or even 100 percent of the corporate tax is borne by workers. 
   

• A National Bureau of Economic Research paper found that 31 percent of the corporate tax rate is borne by consumers through higher prices 
   

• A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003. 
   

• A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase. 
   

• A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor. 
   

• A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue.  

Even the left-of-center Tax Policy Center concluded that Biden’s budget would result in higher taxes for 74.1 percent of middle income-quintile households. By 2031, the TPC found that 95 percent of this income group will see a tax increase due to the expiration of middle-class tax cuts and corporate tax increase.  

President Biden and Democrats continually claim their tax hikes will hold middle class families and small businesses harmless. However, the facts do not support this case. If Democrats have their way and raise taxes, millions of main street businesses, low- and middle-income workers, and retirees will be hit.