It’s hard to deny that the vaping industry is
challenging big tobacco in a way that’s totally unprecedented. Vaping, as we know, is the first real product
that has the ability to effectively replace the need for cigarettes. The tobacco industry knows this and has all
of the power that it needs to put vaping in its place, so to speak. One way that the tobacco industry has managed
to sabotage the vaping industry is through MSA funds.
A lot of vapers don’t quite get why so much
anti-vaping rhetoric exists in the United States, while other countries
throughout the world support the vaping industry, creating legislation that
makes e-cigarettes and the like as accessible to the public as possible. Well, a lot of it has to do with the tobacco
industry, and behind closed doors, deals are made that directly determine the
future of vaping here in America. As
you’ll find out, the MSA is one of the leading culprits behind anti-vaping
rhetoric, although even most vapers aren’t exactly sure what it is.
What is MSA Money?
For decades, we’ve known about the harmful effects of
cigarettes, and as the years have gone on, more and more research has
determined exactly how tobacco affects the human body. And, throughout the last several decades,
more and more data has been accumulated to determine exactly how cigarettes
impact American citizens. Back in 1998,
a large number of Medicaid lawsuits came about, looking to receive compensation
from five of the top tobacco companies for the overwhelming number of deaths
associated with long-term tobacco use.
So, what happened?
Well, the Master Settlement Agreement (MSA) took place. The five leading tobacco companies came up
with a settlement for 46 states, and the settlement allowed for the states to
receive $206 billion over the next 25 years as long as they were willing to
drop the lawsuits against them.
To this day, states receive annual payments from the
MSA. Now, here’s where things get a bit,
well, corrupt. The money that the MSA
pays each state depends on how many cigarettes each state sold. The more cigarettes sold in a state during a
particular year, the higher the annual payment that state receives. In theory, the logic behind this is that the
MSA money is going toward damages caused by smoking, and the higher number of
smokers, the more damages exist. But
what this ends up doing is creating an incentive for states that belong to the
agreement to ensure that as many cigarettes are sold as possible, so that they
receive more money from the agreement.
The money given to each state by the MSA was intended
to go toward education regarding the dangers of tobacco, costs associated with
smoking-related diseases and the development of methods to help people quit
cigarettes. But does the money actually
go toward these things? The answer is
no.
Is MSA Money Being Abused?
As of now, the 46 states involved in the MSA have
received hundreds of billions of dollars over the years. In fact, the first payment came up front, and
it was $12.7 billion. So, did all of
this money go toward helping state citizens quit smoking?
The Government Accountability Office determined in
2005 that less than 35 percent of the settlement money went toward that which
it was intended for. So, where did all
the money go? Well, let’s just say that
elected officials aren’t known to be great when it comes to managing
budgets. So, the majority of that up
front $12.7 billion went to unrelated things before the money actually
arrived. In other words, knowing that
they would be receiving this large sum of money, elected officials decided to
pay off some debts. This led to a cycle
of borrowing from the MSA, so that indefinitely, these states are dependent on
that money in order to get themselves out of financial crises. It’s important to note that on top of that,
each state receives a large amount of revenue from taxes on tobacco products.
One state that receives the most MSA money is
California. So, think about how elected
officials feel about the fact that the number of tobacco users in California
are dropping. Remember that California’s
annual MSA payment is determined by how many cigarettes are purchased in a
year’s time. The fewer smokers in
California, the lower that payment. And,
California, like the other states involved in the settlement, require that
money to pay off debts.
What Does This Have to Do with Vaping?
So, you may be wondering what MSA money has to do with
vaping. Well, let’s go back to
California. As you may have heard,
California is one of the states that seems to be the most eager to ban vaping
altogether, and for years, they’ve been pushing for anti-vaping legislation in
a number of ways. Now that you
understand the MSA and how it works, you might be able to see a connection
here. If California loses a large number
of its smokers to vaping, the state government will get a smaller MSA
payment. And, this will greatly
interfere with the state’s budget.
Therefore, it’s clear that California has an incentive to ensure that
people smoke as many cigarettes as possible.
We now know that there’s a clear link between the increase in vapers and
the decrease in smokers, so California has no doubt that vaping is directly
causing a drop in the number of cigarettes sold statewide.
New Jersey is in a similar situation, heavily
depending on MSA money in order to pay off debts. New Jersey just followed in California’s
footsteps in regards to the flavor ban, and those who have been following the
MSA can understand why.
As Vapers and Taxpayers, We Need to Make Our Voices Heard!
Now that you understand how the MSA works, it’s clear
that states have a financial interest in putting an end to the vaping industry
and ensuring that as many people buy cigarettes as possible. So, what can be done? Spread this information to as many people as
possible so that they can see for themselves the corruption that’s behind
anti-vaping legislation from state to state.
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