AEI Event | E-cigarette regulation: Teens and trade-offs Remarks from Iowa Attorney General Tom Miller

February 19, 2019

E-cigarettes offer adult smokers who are unable or unwilling to give up nicotine a healthier option than traditional tobacco products. However, new evidence has pointed to a significant and unwanted rise in teenage vaping. Policymakers must decide how to best structure balanced policy that curtails youth access while ensuring adult choice. The future of smokers’ access to safer alternatives depends on such a resolution.At this event, Iowa Attorney General Tom Miller will offer remarks on e-cigarette policy, followed by a panel discussion with experts.

Source: E-cigarette regulation: Teens and trade-offs Remarks from Iowa Attorney General Tom Miller


Hemp in the United States: A Case Study of Regulatory Path Dependency by Trey Malone, Kevin D. Gomez :: SSRN

January 2, 2019

The Agricultural Act of 2014 allowed for federally funded research on hemp for the first time since 1937. Since 2014, pro-hemp legislation has received increasingly bipartisan support, culminating with the Hemp Farming Act of 2018, which would remove industrial hemp from its current Schedule 1 listing and allow hemp to be treated like any other agricultural commodity. In part because of this legalization, hemp production in the United States has the potential to increase substantially. This study describes what is known about the economic and regulatory considerations of US hemp agriculture through the lens of path dependency. Important questions remain regarding the legal and regulatory landscape of hemp and are further complicated by its current listing as a Schedule 1 drug.

via Hemp in the United States: A Case Study of Regulatory Path Dependency by Trey Malone, Kevin D. Gomez :: SSRN


The Impact of the Philadelphia Beverage Tax on Purchases and Consumption by Adults and Children by John Cawley, David E. Frisvold, Anna Hill, David Jones :: SSRN

October 18, 2018

In recent years, numerous U.S. cities have enacted taxes on sweetened beverages, but there is relatively little evidence about the effects of these taxes on purchases and consumption. In this paper, we examine the effects of the beverage tax of 1.5 cents per ounce that was implemented in Philadelphia starting January 1, 2017. We surveyed individuals in Philadelphia and nearby comparison communities before the tax and nearly one year after implementation of the tax about their purchases and consumption of beverages. We find that purchases of taxed beverages fell by 8.9 ounces per shopping trip in Philadelphia stores relative to comparison stores outside of the city and that Philadelphia residents increased purchases of taxed beverages outside of the city. The tax reduced adults’ frequency of regular soda consumption by 10.4 times per month, and there is some evidence of a slight reduction in adults’ overall sugar consumption from sweetened beverages, with larger reductions for African-American adults. The tax did not have a substantial effect on the frequency of adults’ consumption of other beverages. We generally do not find detectable effects of the tax on children’s consumption of beverages, although we find a substantial reduction in consumption of added sugars from sweetened beverages among children who had high pre-tax consumption levels.

via The Impact of the Philadelphia Beverage Tax on Purchases and Consumption by Adults and Children by John Cawley, David E. Frisvold, Anna Hill, David Jones :: SSRN


Harmonizing Federal Tax Law and the State Legalization of Marijuana by Daniel Rowe :: SSRN

September 18, 2018

As states legalize marijuana and cannabis-derived products, both for medical and recreational use, the punitive federal tax effect of section 280E makes it economically impossible for many marijuana-related businesses to function profitably. By disallowing the deduction of otherwise legitimate business expenditures, the Internal Revenue Code places such businesses in a situation where they are potentially paying federal income tax on their gross receipts despite netting much less in actual income. This article explores the disproportionate tax burden on marijuana sellers and the growing tension between current federal tax law and states’ legalization of marijuana. This article recommends the amendment of section 280E to eliminate this burden. It is structured in four parts. Part II discusses the history and legislative intent behind section 280E. It delves into the differing tax treatment for illegal drug traffickers versus that of other illegal activities. Part III describes the effects of section 280E, both intended and unintended, on state-legal marijuana sellers as well as on the overall marijuana industry. It explains how the original intent of section 280E, specifically as it relates to marijuana sellers, has been undermined by the changing public attitude towards marijuana and the rise of legal medical and recreational marijuana facilities. This part also considers the onerous tax regime placed on state-legal marijuana businesses due to the inability to deduct ordinary expenses, and how this regime could be counter-productive to overall tax policy. Part IV describes several alternative solutions to eliminate the reach of section 280E to state-legal marijuana businesses. It concludes with the recommendation to amend section 280E to make it inapplicable to activities that are statutorily legal in the states in which they are conducted.

via Harmonizing Federal Tax Law and the State Legalization of Marijuana by Daniel Rowe :: SSRN


The Impact of Retirement on the Healthiness of Food Purchases by Marit Hinnosaar :: SSRN

September 15, 2018

The paper estimates the causal impact of retirement on the healthiness of food purchases. The identification strategy uses early and full retirement ages as instruments for retirement. Using household-level scanner data, I find that retirement increases fruit and vegetable purchases and overall healthiness of food purchases. I also find indirect evidence that retirement increases the time spent on shopping and food preparation: it increases shopping frequency and shifts purchases to fresh and unprepared food products. This suggests that time constraints might play a role in limiting healthy food consumption.

via The Impact of Retirement on the Healthiness of Food Purchases by Marit Hinnosaar :: SSRN


Smoking and Mortality: New Evidence from a Long Panel by Michael Darden, Donna B. Gilleskie, Koleman Strumpf :: SSRN

September 15, 2018

Many public health policies are rooted in findings from medical and epidemiological studies that fail to consider behavioral influences. Using nearly 50 years of data from the Framingham Heart Study’s male participants, we evaluate the longevity consequences of different lifetime smoking patterns by jointly estimating smoking behavior and health outcomes over the life cycle, by richly including smoking and health histories, and by flexibly incorporating correlated unobserved heterogeneity. Unconditional difference‐in‐mean calculations that treat smoking behaviors as random indicate a 9.3‐year difference in age of death between lifelong smokers and nonsmokers; our findings suggest the bias‐corrected difference is 4.3 years.

via Smoking and Mortality: New Evidence from a Long Panel by Michael Darden, Donna B. Gilleskie, Koleman Strumpf :: SSRN


Selective Consumption Taxes in Historical Perspective

June 5, 2018

America’s history of selective consumption taxes dates back to the colonial era, when revolutionaries protested against taxes on tea and paper goods. While the Revolution was prompted in part by opposition to selective consumption taxes, this chapter describes how Alexander Hamilton implemented a selective consumption tax on whiskey to cover the American war debt shortly after America won its independence. The whiskey tax had characteristics common to selective consumption taxes we see today.

via Selective Consumption Taxes in Historical Perspective by William F. Shughart :: SSRN