Commentary: Lawmakers, snuff out the nicotine pouch tax

This article was originally featured in Times Union. Written by Javier Palomarez.
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In a March 3, 2026 Times Union op-ed, United States Hispanic Business Council President & CEO Javier Palomarez calls on New York lawmakers to reject Governor Kathy Hochul’s proposed 75% wholesale tax on nicotine pouches, warning it would create serious unintended consequences.

Palomarez argues that sharply increasing taxes on products already widely used by adult consumers could discourage transitions away from combustible cigarettes, particularly among lower-income individuals most sensitive to price changes. He also highlights the disproportionate impact on small and minority-owned retailers, including neighborhood bodegas and convenience stores that rely on these sales to operate on thin margins.

Pointing to Massachusetts as a cautionary example of rising smuggling and cross-border sales following aggressive taxation, Palomarez urges lawmakers to pursue balanced, evidence-based policies that protect public health objectives without harming small businesses or local economies.

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