Iowa GOP Weighs 15% Vape Tax Hike to Fund Medicaid
Iowa legislative leaders are debating a proposed 15% tax on e-cigarettes and nicotine pouches to help plug a Medicaid budget shortfall. While Governor Kim Reynolds’ broader tobacco tax hike lacks Republican support, the targeted vape tax is gaining traction as a viable revenue stream. Republicans generally avoid raising taxes. House Speaker Pat Grassley recently admitted as much. Yet, Iowa’s Medicaid program is facing a significant deficit, and lawmakers need cash. While Governor Kim Reynolds originally proposed a sweeping tobacco tax increase to combat state lung cancer rates, that plan has stalled due to a lack of GOP support. So, where…
