60% of cigarettes sold in New York are smuggled: report

CNN ^ | 01/10/2013 | Aaron Smith

[musicman]

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[publius911]

Walter E. Williams wrote a piece on why smugglers are good for the economy.
Wish I could find it.

Here ya go....

[Vendome]

Total BS. This is a rack job against the Indians.

They will rationalize the Indians are doing something wrong here but truth is, they are not taxable as a sovereign nation.

Article is a load of crap.

[Vendome]

Nice and totally true.

The same goes for Marijuana...

I don’t smoke that crap but, all kinds of criminal activity would end, mostly, if it were made legal and regulated. Hell, tax it.

[Vendome]

And gave us the Kennedy’s...

[Cronos]

it’s basic economic theory — if you increase the taxes on something, the tax revenues from that go down. If people can easily procure the same product at lower prices, they will — and it can reverse

[Cronos]

it could have been an incentive to get people to stop smoking — in that case, it has worked as, while it is possible to procure black-market cigarettes, it’s not as convenient as heading to your nearest convenience store.

[Cronos]

Not necessarily. Take the UK's example -- taxes are high and there is some smuggling, but not as much as one would expect. People can always bring in 2 packs from the continent

People will either quit smoking or resign themselves to higher prices (even the smuggled ones will still be higher than before the taxes)

[Cronos]

that can only happen when travel across borders is so easy. In the US, travel between states is easy and between the US and Canada and to some extent Mexico. But Canada has a high tax regime as well, so the chances of smuggling are lower.

you are correct about The lesson here....is that you can only tax up to one single point and then the public will not accept it anymore. -- many sneaky "nudge taxes" will increase taxes slowly over the years, by 0.1% or so at a time, or mandate that a box of 20s that cost say $10 will cost $10 but the max box size should be 18 or something like that

[Cronos]

I think the true % is somewhere lesser than 60%, but there would have been a decrease in smoking. Simple convenience factor - if a product is not so easy to get, the casual buyers will leave it. Also add in the “shame” factor — it’s now more shameful to smoke than to be gay for instance. And the shame factor does work, even in modern society.

[Cronos]

deviating from the topic, but health-care shouldn’t be given by the government

[GlockThe Vote]

Same will happen with guns.

[Cronos]

guns are different -- these are not a regular purchase. Just like cars, you don't mind travelling a distance to purchase a car

But cigarettes are a regular item

[Gabz]

Also add in the “shame” factor — it’s now more shameful to smoke than to be gay for instance.

Oh really? Maybe for you, or where you live, but not for me or where I live.

[dfwgator]

Or the opening scene of Beverly Hills Cop.

[Madame Dufarge]

And the shame factor does work, even in modern society.

Actually, this "study" illustrates that the KMA factor works, as demonstrated by the claimed percentage of smuggled cigarettes.

[Cronos]

Maybe. I never said it was universal. And you are correct, I should have used a different choice of words. I meant something like "public disapathy" -- you know what I mean, in the 50s people smoked, but now in most cities if a person smokes he is looked at like he's done something terrible

Hey, I'm not saying it's right or wrong, just pointing out that that's what happens

[Gabz]

...but now in most cities if a person smokes he is looked at like he's done something terrible

Then don't live in a city. Where I live it is perfectly acceptable, except for nosy busy bodies who don't live around here, to enjoy a smoke with your cocktail or dinner while out.

Hey, I'm not saying it's right or wrong, just pointing out that that's what happens

And it only happens because of people with your type of attitude.

[Gabz]

The KMA factor is definitely in play here, no doubt.