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A lot of states are starting to salivate at the thought of taxing the rapidly growing electronic cigarette and vapor products market. Some aim for a nearly 100% tax on the products. Often the argument is that the products should be taxed to reduce use smokers and prevent consumers from becoming new nicotine addicts. Meanwhile, most critics call these tax proposals nothing more than a shortsighted money grab.

The latest state to join in on the money grab appears to be Indiana. New legislation proposed there would not only treat e-cigs as tobacco cigarettes for the purposes of marketing and use bans and restrictions, but would also tax all wholesale transactions of the products by 24%. State Attorney General Greg Zoeller is backing the bill and has already told reporters that he hopes it will “stop the trend in its tracks.”

The bill is sponsored by State Reps. Edward Clere (R-New Albany) and Charlie Brown (D-Gary) — which is unusual. Often, hefty regs for e-cigs are a partisan topic — democrats for tight regs and republicans against. In this case, a democrat and a republican are working together on the bill. It seems likely they both expect to win points with constituents by claiming they’re saving kids and fighting the tobacco big bads.

You can read more about the bill here.

Most recently, Washington state leaders began pushing for a 95% tax on the market. Hawaii, Indiana, Kentucky, New Jersey, Oklahoma, Oregon, Rhode Island, South Carolina, and Vermont have all considered or are considering such a tax. Meanwhile, New York, Michigan, Ohio, and North Carolina have all enact some type of tax aimed at electronic cigarettes, vapor products, or the nicotine sold for their use. So this is not an uncommon push.

The reasoning isn’t as sound as the backers of these bills might hope. Those looking to snuff out the industry are unlikely to do so with these taxes. Similar taxes on cigarettes haven’t stopped very many from smoking and often send smokers to other places — including the black market — for their fix. Historically, sin taxes and harsh regs against things otherwise up to free adults to use don’t go over very well.

At the same time, there isn’t really any evidence that the industry needs to be stopped. So far, market research and scientific studies show that an open market for electronic cigarettes results in a reduction in smoking and a significant decline in the harm caused by nicotine use. If anything, helping the e-cig market seems likely to dramatically reduce smoking — by helping smokers quit and keeping those that would begin smoking from doing so by offering a safer alternative.