Its not the nicotine its the carrier, ie tobacco. King James taxed the hell out of it because:
While the whole world was excited about the newly discovered tobacco, there were some people unhappy with it. King James I wrote, "Smoking is a custom loathsome to the eye, hateful to the nose, harmful to the brain, dangerous to the lungs, and in the black, stinking fume thereof nearest resembling the horrible Stygian smoke of the pit that is bottomless."
King James I did not like the idea of smoking and tried a lot of things to stop tobacco. Since doctors were using tobacco to cure diseases, they were upset that people were buying it without prescription because they were losing money. Knowing James' opinion about tobacco, they came to him for help. The next year, in 1604 the king increased the import tax on tobacco by 4,000 percent: from 2 pence/lb to 6 shillings 10 pence/lb.
At that point the using tobacco grew so much that there were 7,000 sellers in London alone. However, the tax increase really did its job. People were not able to pay a high price like this. The country officials were working hard on proving to the king that tobacco tax could have brought a really high profit to the treasury if it went lower, so he lowered the tax to 2 shillings/lb and the tobacco fans started buying it again.
Although James I had to change his intension to eliminate tobacco use by high taxes, he was still a staunch anti-smoker. In 1604 he wrote a book, Counterblaste to Tobacco, which clearly showed his attitude to smoking and unveiled all known tobacco-use flaws.
First of all, the king pointed out that the herb was introduced neither by king, nor by great conqueror, nor by learned doctor of physics, but was adopted from "unbaptized barbarians [Indians in the Americas]". Because of such doubtful origin of tobacco James wanted the users to "prove both necessary and profitable" application of it...
It would seem Gubermint does not want anyone to have any pleasure...