California Nonsmokers Poised to Vote Their Own Tax Increase, Says Nicotine Replacement Therapy Researcher
(PRWEB) October 4, 2006 -- California citizens, about 86 percent of whom are reportedly nonsmokers, will soon vote on the Coalition for a Healthy California’s Tobacco Tax Act of 2006 (Proposition 86). Information that is not disclosed by the ballot measure’s advocates indicates that nonsmokers who vote “Yes” on the Prop. 86 could be voting for $2.1 billion per year tax increase on themselves.
“The process by which this could occur is predictable,” says Norman E. Kjono, who has conducted research on Parity Pricing of Nicotine Replacement Therapy products since June 2000. Parity Pricing occurs when the cost of one product is changed in correspondence with the price for another. Parity Pricing is different from healthy market competition because paid advocacy is used to increase the price of a dominant market product such as cigarettes, thereby allowing distributors for competing products like nicotine patches and gums to increase their prices, too.
“With Nicotine Replacement Therapy products the consequences to consumers and taxpayers can be dramatic.” Kjono said. “For example,” he says, “between June 2000 and January 2006 state cigarette excise taxes increased by $12.00 per carton in Washington. The corresponding increase in the cost of Nicorette gum during the same period was $12.06 per box, on a per unit basis.”
Perhaps that is a bad deal for nicotine consumers, but how does that relate to tax increases on nonsmokers? “Corporate profit through paid tax advocacy is the link,” Kjono says. He adds, “One needs to look at the tax structure for both products to make the connection. Cigarettes are highly taxed, but there are no federal or state excise taxes on Nicotine Replacement Therapy products. Each box of nicotine gum, patches or lozenges sold therefore effectively becomes a transfer of state excise tax revenues to “Smoke Free” nicotine distributor bottom line profits.”
“Finally, consider the research paper “Toward a Comprehensive Long Term Nicotine Policy,” published by the journal Tobacco Control in 2005,” Kjono added. “That nicotine policy advocates replacing cigarettes with Nicotine Replacement Therapy products. Ballot measures like Prop. 86 are an integral part of that policy. The more successful that policy, the faster state revenue to fund programs created by Prop. 86 evaporate because it becomes corporate bottom line profits.”
“So who is ultimately left holding the bag for $2.1 billion in state programs that Prop 86 creates?” Kjono asks. “All California taxpayers, including 86 percent of whom do not smoke,” he concluded.
A current article by Mr. Kjono on this subject, “California Nonsmokers Poised to Vote Their Own Tax Increase,” has been published online at Cigarexperience.com. The link to that article is:
http://www.cigarexperience.com/ca_tax_norman_kjono_1.htm
Bio and Background Information Norman E. Kjono:
Mr. Kjono has researched and written about tobacco control for the past twelve years. He is a former columnist and board member for www.forces.org. Mr. Kjono’s commentary about youth smoking, “Let’s Really Save the Kids” was republished in the Luncent Press/Greenhaven Books 2000 anthology “Teen Smoking” under the title “A Better Way to Talk To Teens About Smoking.” His works on this subject have also been published in numerous trade journals, including the Los Angeles Daily Journal, plus Chief Engineer and Heating/Piping/Airconditioning magazines. In addition, Mr. Kjono has testified before the Washington legislature and the Metropolitan King County Council, as well as provided reports to the Washington Department of Revenue and Office of the Attorney General. He has also appeared on BBC London, Fox News, CNN, and many radio talk shows concerning tobacco control subjects.
Mr. Kjono’s current project is a book, titled “Trapped in the Triangle: States at the Precipice,” about the long term consequences of tobacco control advocacy on state budgets and fiscal responsibility.
Additional information, including a research report concerning Parity Pricing as submitted to the Washington Department of Revenue, is available on request.
Contact:
Norman E. Kjono, Author
(425) 497-8187
# # #
Related Articles:
Using the Internet to Market Real Estate in 2007
As more and more potential home buyers start their search for real estate on the internet - reassessing how you spend your marketing budget in 2007 is probably the wisest move you can take. Continuing to use traditional newspaper and magazine advertising has the following negative aspects: Newspaper and magazine advertising only lasts the life cycle of the magazine or newspaper - usually only 7 days To ensure you reach a potential buyer you need to advertise in all magazines and newspapers serving your area Theses magazines regularly sit side by side in diners, supermarkets and storesPotentail buyers do not see your adertising unless they visit your town, which is no longer how the home buying process starts85% of homebuyers NOW start their...
Buying Real Estate in Panama Made Easy
Panama real estate has been a target for most foreign investors They see potential for business development as the market in Panama continues in growth
Golf Driving Tip That Will Add Yards Quickly
A golf driving tip that can make the difference between being the shortest hitter in your foursome to the longest..
Las Vegas: Top Three Land Casinos
Going to Vegas? Find out about the three casinos you simply must vist.
Fun-Filled Florida Vacation Attractions
Florida, the Sunshine State, is home to much more than just beaches. The entire state is a wondrous place filled with numerous attractions for vacationers.
Central Florida Sealing Services Company Reaches Out to Global Market with Unveiling of New Web Site
Superior Sealing Services, a surface sealing company based in Central Florida, unveiled its new web site, superiorsealing.com. With the increase in competition locally, the decision was made to feature its services to the global marketplace. Superior Sealing Services is the premier surface sealing services company in Central Florida.
Plaza Las Americas Shopping Center Under Construction On Eastern Avenue in Las Vegas
Gatski Commercial Real Estate Services is now pre-leasing space in a new shopping center under construction in urban Las Vegas that will serve the area along with the burgeoning Hispanic population. Gatski Commercial and the shopping center's developer, RCS Development, are working to attract a grocery store or Hispanic market along with a restaurant/bar with gaming, plus other neighborhood service users such as an insurance company, a real estate company, a sandwich shop, pizza restaurant, coffee shop and medical or dental user. For more information on Plaza Las Americas, interested parties should contact Gatski Commercial at (702) 221-8226 or visit www.lvshoppingcenter.com
Kolter Land Partners Acquired Southeast Florida Portfolio from M/I Homes
Kolter Land Partners announced today that it has closed on the sale of MI Homes entire portfolio of residential lots and inventory homes in Southeast Florida.
The portfolio consisted of approximately 500 developed residential lots and inventory homes immediately available for sale across four communities in Palm Beach and Martin Counties, Florida. Kolter Land Partners completed this all cash transaction in less than three weeks. The total purchase price exceeded $45 million.
Buying French Real Estate
France has now become a very popular destination for expats from around the world for both second and permanent homes. With a stable economy and a very relaxed way of life it is continuing to see a rise in foreign property ownership however, as always, it should be a case of buyer beware.
Golf: Gentleman Only, Ladies Forbidden
While golf is actually a Scottish word derived from the Dutch word kulf, the acronym of gentleman only, ladies forbidden holds true to the history of the sport. Golf is a game that was once played by nobles and military men, then executives and politicians. Now golf is very popular with many people, including women.