State Governments Sabotage Federal Efforts to Help Small Business

Sometimes it just boggles the mind. As the nation struggles to deal with the worst public health crisis of our generation, some policymakers are rightly focused on the most pressing issues like opening our economy and getting critical funding to our suffering small businesses. Yet, at the same time, there are still legislators at the state level who seem to be living in some dream world detached from reality, apparently unaware of the dire problems facing their state and constituents. While the federal government pumps literally trillions into our economy, these lawmakers are pushing policies that will send needed revenue away. Take Kentucky as one example of this “Twilight Zone” government. The deep red state with a Republican majority in its legislature, but led by a Democrat governor, just passed a new tax that will hurt small retailers, and send money out of state. The new tax, which will go into effect in August of this year, levies an additional $1.50 on vapor cartridges. Not only is this tax greater than any state bordering Kentucky it’s one of the biggest taxes of its kind in the nation – even exceeding the bluest of progressive states. The tax will increase the cost by 50% on consumers who may be using e-cigarettes to help them quit smoking. As a result, vapor will now cost more than cigarettes, creating an economic disincentive for smokers to quit.-- More...