Cigarette Tax Burnout

THE WALL STREET ^ | August 11, 2008 | EDITORS

[ricks_place]

Politicians in Annapolis are scratching their heads wondering what happened to all those chain smokers who were supposed to help balance Maryland's budget. Last year the legislature doubled the cigarette tax to $2 a pack to pay for expanded health-care coverage. Eight months later, cigarette sales have plunged 25% and the state is in fiscal distress again.

A few pols are pretending to be happy that 30 million fewer cigarette packs have been bought in the state so far this year. As House Majority Leader Kumar Barve put it, fewer people smoking is "a good thing." Yes, except that Maryland may be losing retail sales more than smokers. Residents of Maryland's Washington suburbs can shop in nearby Virginia, where the tax is only 30 cents a pack, and save at least $15 per carton.

The Maryland pols are so afraid this is true that they've made it a crime for residents to carry two packs of cigarettes that weren't purchased in the state. In other words, the state says it's legal to smoke, so long as you use cigarettes that the government can tax and thus become a financial partner in your bad habit. But if you dare to buy smokes across state lines, you can be fined.

Maryland is only the latest state to prove the folly of trying to finance government with a tax on a shrinking pool of smokers. In New York City and State, tobacco taxes have been raised so many times that the retail cost can exceed $9 a pack -- about double the national average. Few budget-savvy smokers in the Big Apple pay that tax...

[ricks_place]

States learn a lesson in Economics-101. Law of Supply and Demand is enforced.

[Drango]

fewer people smoking is "a good thing".

It's a great thing!

[AndyJackson]

they've made it a crime for residents to carry two packs of cigarettes that weren't purchased in the state

I don't smoke, but this is insane. Put me on that jury!

[PGalt]

Exactly. Socialism: Meet freedom-loving-chain-smoking-capitalists. /sarcasm

[FlingWingFlyer]

Arizona seems to have given up on extorting money from smokers. I guess they killed their golden goose. Speeding cameras are the “in” thing here now for “revenue.”

[gwilhelm56]

**States learn a lesson in Economics-101**

Especially when we NY’ers know where the Indian Reservations with the Cheap smokes are. Liberal Morons who don’t seem to understand... SUPPLY AND DEMAND RULE!!!

VIVA LA CAPITALISMA!!

[Thrownatbirth]

One word: Chantix.

Smokers have had it and are quitting in droves. It's the best revenge against the clowns who thought we were an endless revenue stream. They can suck eggs now.

[iowamark]

House Majority Leader Kumar Barve

Recently pled guilty to drunk driving. No word if he was smoking at the time.

[Crimson Elephant]

I highly doubt the smokers have “quit”. I am sure there is a black market evolving even more than just driving to another state. I am sure there are more than a couple of people selling cigs out of their van.

[maine-iac7]

It's a great thing!

Maryland is a tiny state - I suspicion most are simply going to another state for their smokes...

When prices reach the tipping point, anything, people find another way...

This is a prime example of why raising taxes doesn't work...

[Mark]

They can suck eggs now.

No, they will tax eggs BIG time.

[RandallFlagg]

Ping-a-rooni!

[Carry_Okie]

A few pols are pretending to be happy that 30 million fewer cigarette packs have been bought in the state so far this year.

Idiots. They've never heard of "smuggling."

[VeniVidiVici]

House Majority Leader Kumar Barve

Recently pled guilty to drunk driving. No word if he was smoking at the time.

We should write him and suggest they raise the state tax on a liter of whiskey to $10.00 a bottle. Obviously people in Maryland are still drinking. :)

[Mr. Brightside]

Atlas Smoked.

[skinkinthegrass]

SheLion, died 06/28/2008...may she R.I.P.
http://www.freerepublic.com/focus/f-news/2036688/posts

[Drew68]

Maryland is only the latest state to prove the folly of trying to finance government with a tax on a shrinking pool of smokers.

Originally, these exorbitant tobacco taxes were supposed to be used to pay for smoking-related health costs. The logic being that if people quit smoking, health costs would go down and the taxes wouldn't be missed.

Yeah, right!

Now cigarette taxes are being used for everything from parks & recreation, children's health care, schools and balancing budgets. Are any of these taxes used for smoking related costs anymore? I doubt it. Needless to say, when people quit smoking (or otherwise evade paying these increasingly exorbitant tobacco taxes) something else is going to have to be taxed to make up for the loss of revenue. How many of those people who supported cigarette taxes wholeheartedly even considered this?

By raising the cost of cigarettes to $4, $5 and even $9 a pack, they've killed the golden goose and either motivated people to quit or sent them to find black market sources. Gotta love the Law of Unintended Consequences. It proves itself true every time.

[Intolerant in NJ]

Maryland is only the latest state to prove the folly of trying to finance government with a tax on a shrinking pool of smokers...this is bizarre, even for government - raise taxes on something to try to stamp it out and finance some program with the income, then puzzle when the income falls because you've managed to stamp out what you taxed - it's a very old truism that you get less of what you tax - maybe those who want to tax the "excess profits" of the oils will learn something from this story - nah.......

[NonValueAdded]

Mel Thompson knew what to do (paragraph 2). May he Rest In Peace.

[Anti-Bubba182]

They stopped taking credit cards on the reservations and in NY state they are trying to pass a Sales Tax that would apply on Reservations.

NY Senate passes Indian reservation tobacco tax

[NonValueAdded]

Yep, she would be all over this thread. May our SheLion Rest In Peace, too.

[gaijin]

Over 1/2 of the tobacco loot given to L.A. was used to fix SIDEWALKS --something miles away from helping people made sick by a cigarette addiction.

In fact, government addiction to tax money is substantially stronger than tobacco addiction. That's what we're really dealing with here...

[Eric Blair 2084]

This is the first I’ve heard of this. Why didn’t somebody tell me SheLion died?

I guess it is up to us to carry the torch.

[Eric Blair 2084]

Coercing people to change their behavior has never been, nor will it ever be a conservative limited government principle.

You are on your own and entitled to your liberal progressive opinion in favor of “change”.

[Eric Blair 2084]

Big Brother, Nanny State, Grant Junkie, Bogus Study, Junk Science, Social Engineering, Egalitarian, Central Planning, Sheeple Control, Health Nazi, Socialism, Collectivism

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[Rembrandt]

“..they’ve made it a crime for residents to carry two packs of cigarettes that weren’t purchased in the state..”

---

I wonder if the Kennedy family has gotten into the cigarette bootlegging business yet; they’ve sure made a bundle on booze.

[Eric Blair 2084]

Scientists and Grant Junkies have managed to convince the part time legislators in the states that reducing smoking rates will solve their budget woes caused by out of control spending on social programs. They are willing to reach for straws to not have to cave into unions or enforce immigration laws in order to cut expenses.

Once the Gubmint is done coercing smokers to quit, it's on to the next target.

[gwilhelm56]

** ... trying to pass a Sales Tax that would apply on Reservations. **

Last time NY tried that, the Indians set up TOLL BOOTHS on the highway that passed thru their LAND... the time before that they blockaded the THRUWAY ... no traffic went thru ... and before that they ...

NY COMMUNIST PARTY are so STUPID, they’ll never learn.

As for the Credit card... there’s always ATM.

IF I CAN”T SMOKE THE DAMN THINGS ALMOST ANYWHERE IN NYS ... I SURE THE F*** AIN”T GIVING THEM TAX MONEY

[Eric Blair 2084]

Roll your own, buy Native American like I do, or buy them duty free in an airport or cruise ship.

They taste much better knowing that the STATE is not getting one penny for their social engineering experiment.

[Alamo-Girl]

Thanks for the ping!

[DakotaRed]

Many states are crying about decreased tobacco taxes not filling their coffers.

Likewise, they cry too that increased gas taxes are causing drivers to use less gas.

Their answer? As always, raise taxes again.

In the immortal words of Scotty of the Little Rascals, “They'll never learn.”

[gwilhelm56]

** ...They taste much better knowing that the STATE is not getting one penny ... **

Tobacco, LIKE it or not, is STILL LEGAL! Time for BIG BROTHER to realize ... if the stuff is so BAD ... BAN IT.
Personally for all that tax revenue, we should be THANKED and Treated PROPERLY ...

An accountant friend of mine (with too much time on his hands) ran some numbers, and told me that without tobacco taxes... FEDERAL tax rates would have to QUADRUPLE and State taxes, “umm, well, my calculator doesn’t go that high”

[Eric Blair 2084]

I’m with you.

If it is so horrible. Just ban it already.

Social engineering and controlling citizens through central planning government actions is anathema to a free country.

[Ken H]

They stopped taking credit cards on the reservations and in NY state they are trying to pass a Sales Tax that would apply on Reservations.

NY Senate passes Indian reservation tobacco tax

Sounds like NY is well on its way to creating a thriving black market. With the $$$ potential involved here, there is no doubt that violent turf wars will develop in time as criminal gangs vie for the loot.

This policy will also provide an opportunity for corrupt public officials and police officers to get a slice of the illegal trade.

[TigersEye]

Don't pay their taxes. Roll your own.

Disclaimer: I have no affiliation with this company. Just a customer. There are plenty more companies.

[beckysueb]

Chantix is a very dangerous drug. People have committed suicide while taking this drug. It has some really frightening side effects. Not just occasional but almost 100% of the time. Just like the antismoking Nazis, though, to want people to take a drug that will turn them into a physcotic mess as long as they don't smoke eeeeeevilllll cigarettes.

[beckysueb]

I have tried rolling my own. I just can’t seem to get the hang of it. I waste more tobacco than I use.

[Cementjungle]

I have tried rolling my own. I just can’t seem to get the hang of it. I waste more tobacco than I use.

My sister (she lives in England) rolls her own too. It definately makes you cut down on smoking since it's such a pain to do.

[Grunthor]

Politicians in Annapolis are scratching their heads wondering what happened to all those chain smokers who were supposed to help balance Maryland’s budget. Last year the legislature doubled the cigarette tax to $2 a pack to pay for expanded health-care coverage. Eight months later, cigarette sales have plunged 25% and the state is in fiscal distress again.

---

You mean raising taxes, thus prices actually LESSENS tax revenue? Who coulda known that besides any American teen that has taken a high school econ class.

[TigersEye]

Oh, I’m sorry to hear that. Have you tried any of the rolling machines. I roll by hand but the simple Rizla type rollers are pretty easy to use and inexpensive. But there are also machines that use tube type papers and you can get them with filters even.

[Madame Dufarge]

What a great state New Hampshire used to be.

It's suffering badly from liberal-seep now :-(

[Thrownatbirth]

Chantix is a very dangerous drug.

I've been on it five weeks with no problems whatsoever. I now plan to outlive the bastards that taxed my smokes and piss on their graves.

[The Ghost of Rudy McRomney]

Jeez, I’m sorry, Eric, She had a n entire beautiful thread devoted to her when she died. Just figured you knew.

[beckysueb]

I have the rolling machine and filters. I just can’t get it right. Either too much tobacco or too little.

[beckysueb]

Good for you. I’m glad you are not having any problems with the Chantix but just be on the alert for side effects. They can be really bad.

[ProfoundMan]

But there are also machines that use tube type papers and you can get them with filters even.

Get the tubes and a good, crank-type machine - you'll be glad you did. I can make a pack in the time it take to smoke one cigarette and I can make a carton for $12-ish. There's also an electric injector coming that should make life even nicer for us.

God bless She-Lion.

[Diana in Wisconsin]

Bwwwwaaaaaaaaaa-Haaaaaaa-Haaaaaa!

The Commies never follow their twisted “logic” through to the end.

When all of we Sheeple are reduced to a handful, due to this ban and that, due to increasing taxes at every turn (and it’s STILL not enough!) who the heck is going to be around to support the Elitists?

They overplay their hand EVERY time. Dorks.

[Just another Joe]

Ahhhh, unintended consequences of raising takes on a legal product to exorbitant rates.

Just wait, soon it will be other things.

[unixfox]

Why stop at making it a crime for carrying cigarettes from one state to another?

Why not anything for that matter, say gas, food, clothing, or ANY taxable item they deem is their "cut".

PATHETIC!

[ichabod1]

You know, if they really wanted to see a drop in smoking rates they should stop with the heavy handed rhetoric and gestapo tactics. There is a very large cadre of smokers now who will. not. quit. out of sheer stubbornness and unwillingness to give in to Big Nanny.