Michigan Governor Gretchen Whitmer has proposed a 32% tax on the wholesale price of e-cigarettes and other tobacco products, aiming to improve public health by reducing youth vaping. The proposal has raised concerns among local vape shop owners, who fear the tax could hurt their businesses and drive customers to seek cheaper alternatives online or on the black market.
Currently, there is no specific tax on vape products in Michigan, and the proposed tax would make these products more expensive. Governor Whitmer cites the high number of high school students who vape as the reason behind the proposal.
Justin Fleeson, owner of Otters Oasis, believes the tax will be detrimental not only to businesses but also to youth. He expressed his concerns to WSBT, stating, "I really do think that this is going to be something that's detrimental not just for business, but also for the youth."
The state budget office estimates that the proposed tax could generate $57 million in revenue, which could be used for smoking and cancer prevention programs. However, local vape shop owners remain apprehensive about the potential impact on their businesses and the unintended consequences the tax may have on youth vaping habits.
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