Conservative advocacy group Building Americas Future has launched a six-figure ad campaign opposing the Biden administration’s proposed menthol cigarette ban, citing potential negative impacts on state revenue. The group argues that the Food and Drug Administration’s (FDA) restrictions on menthol cigarette sales could jeopardize hundreds of millions of dollars nationwide. A Tax Foundation analysis conducted in 2022 estimated that the ban would cost the federal government $1.9 billion and state governments a total of $4.7 billion due to high tax rates on cigarettes.
Critics of the proposed ban, such as Jeffrey Singer, a senior fellow at the Cato Institute, warn of unintended consequences. Singer argues that prohibition of menthol cigarettes would create a thriving black market for illicit products, including drugs, cigars, and cigarettes. The ban could also lead to increased interactions between law enforcement and non-violent individuals, particularly in minority communities where menthol cigarettes are more popular.
The proposed ban would have significant financial implications for several swing states, including Georgia, Michigan, North Carolina, and Ohio, which would face estimated revenue declines ranging from $123 million to $227 million. Currently, the average pack of cigarettes in the U.S. is subject to $1.91 in state taxes and $1.01 in federal taxes. Additionally, states continue to receive funds from the Master Settlement Agreement, resulting in approximately $0.75 per pack in 2022.
The FDA issued product standards in April 2022 to prohibit menthol as a characterizing flavor in cigarettes and all characterizing flavors other than tobacco in cigars. The agency argues that this move would help reduce disease and death from tobacco use by curbing youth experimentation and addiction, as well as increasing the number of smokers who quit. Health and Human Services Secretary Xavier Becerra emphasized the potential benefits for public health and health equity.
However, opponents of the ban, including Senator Tom Cotton, argue that it would criminalize law-abiding citizens while granting early release to actual felons and encouraging illicit drug use. Senator Kyrsten Sinema believes that individuals should have the freedom to make their own choices, with the government’s role being to ensure product safety through regulation. Small business groups, such as the New England Convenience Store & Energy Marketers Association, have also criticized the proposal.
Supporters of the ban, including the American Lung Association and a group of 311 faith leaders, argue that it will lead to reduced tobacco use and improve health outcomes. They believe that the ban will address the unjust disparities caused by tobacco companies targeting certain communities with menthol cigarettes.
The proposed regulations have been sent to the White House Office of Management and Budget for review, bringing them one step closer to finalization and implementation. However, the backlash and concerns about unintended consequences continue to surround the proposed menthol cigarette ban.
