The U.S. Food and Drug Administration recently released results from the National Youth Tobacco Survey showing that youth tobacco use is down across the board. Remarkably, the rate of monthly tobacco and nicotine use among teens has been cut by two-thirds in the past six years.
Even youth use of nicotine pouches, which several advocacy groups frame as the latest nicotine-delivery villain, has remained very low. In fact, the Albany Times Union last week reported that, “The U.S. Food and Drug Administration released … data that show about 1.6% of middle and high school students reported using nicotine pouches monthly last year, down slightly from 1.8% the year before.”\
New York Gov. Kathy Hochul should take note. Her proposed budget includes a 75% excise tax on nicotine pouches that she says is meant to help reduce youth use. However, there is little evidence that a 75% tax on a legal, regulated product would meaningfully reduce youth uptake of a product they are not already using at high rates.
Excessive tobacco taxes have a well-documented history of fueling illicit trade, pushing products out of regulated retail settings and into unregulated channels. New York knows this well — unlicensed sellers and illicit products cost the state more than $2 billion per year.
