In a recent development, Building Americas Future, a conservative advocacy group, has initiated a substantial ad campaign across various potential swing states and congressional districts for the 2024 elections.
The campaign is a response to the Biden administration's proposed ban on menthol cigarettes.
The group's ad campaign argues that the Food and Drug Administration's (FDA) proposed restrictions on menthol cigarette sales could potentially endanger hundreds of millions of dollars in state revenue across the country. A 2022 analysis by the Tax Foundation suggests that the proposed restriction could cost the federal government $1.9 billion and state governments a total of $4.7 billion, considering the high tax rates on cigarettes.
Jeffrey Singer, a senior fellow at the free market Cato Institute, expressed his concern over the proposed ban in a report published on October 17. "Sadly, it appears the menthol?ban train has already left the station," he wrote. "This means more business opportunities for purveyors of black market products ranging from illicit drugs to cigars and cigarettes. And if history teaches us anything, we can expect to witness many harmful unintended consequences."
Singer further elaborated on his stance in comments submitted to the FDA months earlier. "Prohibition fuels an underground market where peaceful, voluntary transactions become crimes. It gives law enforcement another reason to interact with non?violent people who commit these victimless crimes," he said. "With menthol cigarettes more popular among Blacks and Hispanics, expect police to focus their attention on minority communities."
The ad campaign specifically targets several states and congressional districts, including New Hampshire, North Carolina, South Carolina, and districts in Colorado, Pennsylvania, Ohio, and Connecticut.
The Tax Foundation analysis from 2022 also indicated that swing states such as Georgia, Michigan, North Carolina, and Ohio could see revenues decline by an estimated $123 million, $219 million, $165 million, and $227 million, respectively.
In the U.S., the average pack of cigarettes is subject to $1.91 in state taxes and $1.01 in federal taxes. Furthermore, every state continues to receive funds from the Master Settlement Agreement, a 1998 settlement between the states and the nation's four largest tobacco companies. This agreement was designed to resolve numerous health-related lawsuits and reduce youth smoking. According to the Tax Foundation, this translates to about $0.75 per pack in 2022.
In April 2022, the FDA issued product standards to prohibit menthol as a characterizing flavor in cigarettes and prohibit all characterizing flavors other than tobacco in cigars. The agency stated that this move would reduce disease and death from tobacco product use by reducing youth experimentation and addiction, and increasing the number of smokers that quit.
Health and Human Services Secretary Xavier Becerra supported the proposed rules, saying, "The proposed rules would help prevent children from becoming the next generation of smokers and help adult smokers quit. Additionally, the proposed rules represent an important step to advance health equity by significantly reducing tobacco-related health disparities."
Despite the FDA's intentions, the proposal has been met with criticism. Sen. Tom Cotton, R-Ark., expressed his disapproval, stating, "This administration would make criminals of law-abiding citizens while granting actual felons early release and encouraging illicit drug use. No wonder Americans have lost faith in an administration that's less interested in public safety than targeting political enemies."
Sen. Kyrsten Sinema, I-Ariz., also weighed in, saying, "My general perspective would be that as adults, people can make their own choices, and what the government's job to do is to ensure that we have a market that is open and that products are available that are regulated to make sure that everyone is safe."
However, proponents of the proposed actions argue that it could lead to reduced tobacco use and ensure positive health outcomes. Harold Wimmer, CEO and President of the American Lung Association, said, "Once finalized, rules to end the sale of menthol cigarettes and flavored cigars rule will be the most significant actions that the FDAs Center for Tobacco Products has taken in its 14-year history. The American Lung Association is eager for these lifesaving rules to be implemented and urges the White House to finalize these rules before the end of the year."
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