Skip to comments.60% of cigarettes sold in New York are smuggled: report
Posted on 01/10/2013 2:41:18 PM PST by GlockThe Vote
New York has the highest cigarette tax rate of any state, and nearly two-thirds of the state's cigarette market is illegal, announced the think tank Tax Foundation on Thursday.
The Tax Foundation said that 60.9% of cigarettes sold in New York State are smuggled in from other states.
This makes New York the biggest importer of black market cigarettes, along with the state's highest tax rate of $4.35 per pack. That's compared to Missouri, the state with the lowest rate, of 17 cents per pack.
In New York City the tax rate is even higher, adding another $1.50 per pack to the state rate. It's not uncommon for smokers to pay $12 for a pack.
The report said that tobacco smuggling and the tax rate have risen practically in tandem since 2006. The New York State tax on cigarettes has risen 190% since that time, as the rate of smuggling increased 170%.
(Excerpt) Read more at money.cnn.com ...
Funny how the rate of smuggling went up directly in relation to the tax increases.
cuomo and bloomers taxes themselves right out existence. People will find a way around tyranny.
Yup. And bloomie and Cuomo think a law will keep guns out. LOL!!!!
Prohibition creates criminality.
Unintended consequences. But the average non-politician could have seen this from space.
Correct - I live here and every bodega and little shop sells under the counter cigs to avoid the ridiculous taxes.
Heck - remember the opening sceen of Goodfellas?
But... but... that can’t be since there are laws against that!!
I think we need to put a serial number on each cigarette and require smokers to be registered. They can only buy 1 pack a day. They need to take a course in fire safety, too, and pay a carbon tax.
Lots of smuggling in Michigan as well.
Politicians NEVER learn. 90% are a bunch of idiots.
I’ve had cigarette packs with Cyrillic writing, Chinese characters, and some with no stamp at all. In Newark they still sell “loosies” (individual cigarettes); I could imagine what they cost now.
NJ is just too small a state to try to screw its own people; it is too easy to reach Delaware from the south (no sales tax), PA to the west (cheap cigarettes - they return the favor by coming here for cheaper gasoline), and NYC to the east (cheap marijuana). Years ago they were considering charging people for salt-water fishing licenses; cooler heads prevailed when it was pointed out how easy it was for anyone coming from the west to just detour around us to other coastal states.
Yup. I live in this leftist hell hole. These idiots never learn.
I know - I live here - its like a communist 1984 esqe existence
Instead of comparing this to Prohibition, instead if you go back further you will find that smuggling is *patriotic*!
Even before the American Revolution, Americans were renowned for their smuggling skills to evade crown taxation.
In the mercantilism of the colonial system, the colonies existed to enrich the mother country. Restrictions were placed on what the colonies could manufacture, whose ships they could use, and most importantly, with whom they could trade.
British merchants wanted American colonists to buy British goods, not French, Spanish, or Dutch products. In theory, Americans would pay duties on imported goods to discourage this practice. The Navigation Acts and the Molasses Act are examples of royal attempts to restrict colonial trade. Smuggling is the way the colonists ignored these restrictions.
They passed laws regulating colonial trade, but they knew they could not easily enforce them. It cost four times as much to use the British navy to collect duties as the value of the duties themselves.
Colonists, particularly in New England, thought nothing of ignoring these laws. Ships from the colonies often loaded their holds with illegal goods from the French, Dutch, and Spanish West Indies.
When smugglers were caught, they were often freed by sympathetic American juries. Smuggling became commonplace. The British estimated that over £700,000 per year were brought into the American colonies illegally.
As 1776 approached, the tradition of smuggling became vital to the Revolutionary cause. This encouraged ignoring British law, particularly in the harbors of New England. American shippers soon became quite skilled at avoiding the British navy, a practice they used extensively in the Revolutionary War.
Soon England began to try offenders in admiralty courts, which had no juries. All attempts to crack down merely brought further rebellion.
These days when people rob convenience stores, they sometimes eschew the cash (which is never much) and go for the cigarettes, which have become ridiculously expensive due to federal, state and local taxes.
A pack of cigarettes costs the producer less than a nickel and the consumer an hour's wages, thanks to hysteria.
I am surprised that some of these Lib states have not tried to collect cigarette taxes from former smokers.
They could claim that, though the cessation of smoking is good, the state needs the tax money and the smoker inadvertently contracted with the state to provide a continuing stream of tax money by continuing to smoke for a number of years. A later cessation of smoking does not void that implied obligation.
Hey, the states are desperate.
They will try anything they think they can get away with.
They have already sent tax bills to those who purchased non-taxed cigs.
Wish I could find it.
The tax foundation can say what it wants, but officially, smoking in NY has decreased by 60%!
A German story here from about a decade ago. The German tax folks and the anti-smoking crowd came to together for a two-phase approach. It was a fair-sized jump on the current tax at the time on smokes.
Well...roughly nine months go into this first step of the new tax, and there’s an emergency meeting of the German tax office. There’s roughly a quarter-a-billion dollars missing from cigarette taxes for that period. The anti-smoking folks were all happy, thus this showing that people quit smoking, but the tax folks were furious because they were short on the revenue bucket.
Then, the customs guys at the table stood up....strange thing...they announced. They had seen a drastic change in illegal cigarette cartons being smuggled into Germany. Teenagers were bringing in twenty cartons here and there. People had enough truckloads that they attempted to smuggle in....with no taxes on the smokes. They were busting people left and right.
So the tax folks got suddenly worried. The public had said enough, and simply found other sources for their smokes. They stopped phase two of the tax hike and hoped that people would stop this smuggling practice. Well...they never have. Smuggling cigarettes into Germany is as popular as ever.
The lesson here....is that you can only tax up to one single point and then the public will not accept it anymore. Once you screw up the tax game....your whole monopoly on taxes drys up.
Nope, self-confessing smokers have decreased by 60%.
When the tax on loose cigarette tobacco went up by 2300% in 09, most of the people I know switched from roll your own cigarette tobacco to rolling their own with pipe tobacco that wasn’t covered by the tax.
I hope the people who thought it was OK to hike taxes by 2300% on a product they didn’t use are happy when the same prohibitive tax is imposed on a product they do use.
Here in Tennessee, there is a law that says you can’t cross the border into another state like KY with much lower taxes, and buy a quantity to bring back, even for your own use. At one time they had spies at borderline stores taking down license plates and radioing it back to LE in TN.
Good. I’m glad to hear it and hope it continues.
There were wars fought and massive demonstrations of civil disobedience over the right to peaceably travel from place to place in this country.
Sounds like it may be time for a re-peat.
You can imagine how well that was received.
Don’t give Bloomberg any ideas. He would do it.
They were warned - but they didn’t listen..
Now Como and Bloomberg want to add even more restrictions and costs to legal firearms ownership!!!
Have at it idiots!!
Around twenty or so years ago the Indiana a uthorities put a stop to Ohio liquor agents doing the very same thing.
And Ohio finally ended its state monopoly on liquor sales.
People were driving to Indiana and Kentucky for quantity liquor purchases because the Ohio prices were so high.
And every time the tyrants tax and outlaw what have been accepted human activities ,they engender more smuggling,disregard,and disdain for all laws.
Funny thing is that the cigarette smuggling numbers in Michigan are artificially lower due to smuggling out of the state into Canada which is far more restrictive.
All those cigarette taxes are goin' for smoking cessation programs riiiiight???
It's for the children doncha' know.
Had to laugh at this because I could see them trying to pull it off - after all, much of those tobacco taxes go to pay for all those obnoxious quit smoking ad campaigns!
How do these people get away with this?
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elkfersupper: Nope, self-confessing smokers have decreased by 60%.
You''re both wrong - predicted tax revenues have decreased by 60%.
The anti-smokers have never and will never learn - they predict a 10% decrease in smoking for every (?)% of tax increase - they are always wrong by a factor of about 75%. Additionally, the estimated increase in tax revenue never meets expectation.
They are repeatedly told this each and every time they propose tax increases and each and every time they ignore the facts placed in front of them.
Don’t go giving them anymore ideas.
And increase in crime; The blackmarket sets up turf wars and more gang (and terrorists, there have been terrorists caught selling blackmarket cigs to finance their activities)crime. They won’t ingage in this activity unless the taxes on something makes it more feasible for consumers to risk buying on the blackmarket.
Here in Kansas, I’d say about 20% of the residents tag their vehicles in other states for the same reason. Because the personal property tax and registration fees are so damn high in this state.
I buy my cigs at:
Las Vegas Paiute Tribal Mini Mart, 1225 North Main Street, Las Vegas, NV
$25 a carton.
Viva Las Vegas!
I live here, too, and I do smoke.
I buy mine on the reservation [$30/carton vs. $100/carton at a "white" store]. Everyone else who smokes does, too. It's basic economics -- it's all about the price.
About 7 or 8 years ago, Ontario and Quebec faced the same issue and were wise enough to reduce their confiscatory cigarette taxes so as to increase government revenue.
New York's not smart enough for that. Taxes exist to punish the people [the rich and the smokers] and, dammit, that's how it will stay.
But first, ban lighters and matches. Those cause the cigarette to catch fire. Hmmm. Ban inhaling.
The crazy thing is that the $4000 theft was less than 65 cartons of smokes.
“At one time they had spies at borderline stores taking down license plates and radioing it back to LE in TN.”
And let me tell you how I think that was neutralized, based on some similar shenanigans I was ... ahem ... aware of:
The same thing was happening at some boarder fireworks stores in PA. People from NY State (Where you can not buy fireworks) will routinely go to fireworks stores in PA to buy for the fourth of July. There were a few cases where the NY law enforcement would have a guy watch the cars going in and out of the parking lots of the fireworks stores and reporting the make, model and plate# back across the border. Then the when the car came back in to NY they would stop them and search them.
But they very quickly started coming up empty handed.
Because once the game was discovered, the buyers started driving away to some other location to off load the goods into another car - driven by someone who was never anywhere near the store. They would then both proceed back to NY crossing into the state at different places. The empty car was stopped and searched. The one with the merchandise wasn’t on the list.
Any time the govt sets oppresive taxes and regulations on an item the public wants a black market forms.
The disgusting pofs politicians refuse to accept this