Proposition EE - Cigarette tobacco and nicotine products tax

Nobel prize winning economist James Heckman said, “The highest rate of return in early childhood development comes from investing as early as possible, from birth through age five, in disadvantaged families.”

Proponents of Proposition EE say that the revenue created from the nicotine tax would do just that. This November, Colorado voters will be voting to increase the current tax on tobacco products and for the first time ever, to institute a tax on nicotine-vaping products.

“Oftentimes, people aren’t aware that we [in Colorado] don’t have a tax [on nicotine products],” said Melissa Mares from the Colorado Children’s Campaign. A former kindergarten teacher, Mares said that she saw first hand the benefits of preschool on young children. But she also saw the inequities to access.

Not only does preschool provide the opportunity for children to learn basic skills like learning the alphabet and numbers, it also helps develop social skills. While Colorado does have a targeted preschool program that seeks to serve children from lower incomes, who don’t necessarily have access to other preschool programs, early childhood educators argue that it’s not enough.

“Due to funding, it [the Colorado Preschool Program] only serves about 40% of families who are eligible,” said Mares. If passed, not only would there be funding to expand the targeted program, but it would also create the funds for a universal preschool program. The idea is that this universal program--which does give the option for parents to opt out for other programs--would provide children at least 10 hours per week of free preschool for the year before entering kindergarten.

It sounds promising to hear that the legislative council of the Colorado General Assembly predicts that Proposition EE will generate an extra $87.4 million in revenue in the first six months alone. Between fiscal years 2021-22 and 2027-28, they estimate that revenue will rise from $177.1 million to $275.9 million.

Right now, there is a $0.84 tax on a package of cigarettes, by 2021, the proposition would raise that tax to $1.94 and by 2027, to $2.64. That’s an increase of $1.80 over the next six years.

However, that money won’t immediately go toward the expansion of the preschool programs. For the first three years, money from the tax would largely go toward funding K-12 education, especially in rural school districts, and housing assistance. Only in 2023 would funding start to go toward establishing the universal preschool program and expanding the targeted one.

“Our state is in need of revenue, we’re seeing social services facing budget cuts,” said Annalise, Romoser, the state manager of the Save the Children Action Network. “It’s an interesting and creative way to address some of the budget challenges, [and] overall, learning is a great investment.”

“People in our communities know that we need funding,” Romoser said. “Beyond that, people are realizing the importance of early childhood learning. I think that Colorado voters also want to see a reduction in youth vaping and will be supportive of this ballot measure.”

Romoser also pointed out that Prop. EE is a legislatively referred measure--which means that the legislature voted for it to be put before voters--and that it has bipartisan support.

On that note, opposition primarily comes from those concerned about raising taxes, and from both the companies and the shops selling nicotine products.

The Rocky Mountain Smoke Free Alliance claims that, as a result, the state might see closings of small businesses like the vape shops it represents. Similarly, the group also argues that some former cigarette users have turned to vaping products who are still addicted to nicotine but who don’t want the associated risks from smoking. But, according to the Centers for Disease Control and Prevention, “There is presently inadequate evidence to conclude that e-cigarettes, in general, increase smoking cessation.” In other words, the CDC doesn’t have enough evidence to back the claim that vaping leads to a decrease in smoking.

Other opponents argue the tax would disproportionately affect cigarette and nicotine addicts who are lower income and some minority groups. These opponents fear that the increased tax wouldn’t lead to decreased smoking, but rather force them to pay more. Similarly, some say that if nicotine and tobacco taxes do increase and lead to decreased use of the products, there will be less funding in the future. Criticism has also been leveled at the lack specificity in the programs the tax revenue would fund.

That said, it’s also worth pointing out that while a similar measure was struck down in 2017--that proposal was to raise cigarette taxes from $0.84 to $1.75--and Altria, a Fortune 200 which owns Marlboro and other tobacco-product companies, spent millions against that proposition. This time, they actually helped to negotiate the bill.

Groups supporting the measure include Children’s Hospital, the American Heart Association, and the American Lung association. These health-centered organizations believe that increased prices will curb teen vaping. According to For Colorado Kids, 29% of Colorado teens are currently estimated to use e-cigarettes.

The secretary of state's office puts out lists of groups both in favor and in opposition to various ballot measures. More information can be found here.

For more information about For Colorado Kids, visit: https://forcokids.com/

For more information about Save the Children Action Network, visit: https://savethechildrenactionnetwork.org/state/colorado/

For more information about Colorado Children's Campaign, visit: https://www.coloradokids.org/

For more information about the Rocky Mountain Smoke-Free Alliance, visit: https://www.rmsfa.org/calls-to-action-1