Report: Tobacco tax hikes don’t pay

The Daily Caller ^ | 8/4/2013 | Sarah Hurtubise

[rktman]

Cigarette taxes turn a frowned-upon habit into a popular revenue source. But a recent study found that cigarette taxes often lead to other tax hikes later.

The National Taxpayers Union found a 70 percent chance that the so-called sin taxes will not produce the expected revenue, as people buy fewer packs. The taxpayer advocate organization reported that from 2007 to 2011, 25 of 37 cigarette tax increases were joined by other new tax hikes within two years.

[rktman]

I know you will be shocked by this revelation. NOT! P.S. I don't frown upon it.

[JRandomFreeper]

If you grow your own, you don't pay taxes on it.

/johnny

[cripplecreek]

Duh.

I remember Jenny Granholm talking about the “Breathtaking decline in tobacco revenues” after jacking up the tax so she immediately started talking about other ways to make up for the loss like taxing food eaten by staff in restaurants.

[rktman]

Yeah, but don’t forget, they are SOOOOO much smarter than the rest of us.

[TomGuy]

so-called sin taxes will not produce the expected revenue, as people buy fewer packs

I have noticed that for me since January 2003:

2003 - 2 cartons
2004 - 0 cartons, 0 packs, 0 cigarette taxes
2005 - 0 cartons, 0 packs, 0 cigarette taxes
2006 - 0 cartons, 0 packs, 0 cigarette taxes
2007 - 0 cartons, 0 packs, 0 cigarette taxes
2008 - 0 cartons, 0 packs, 0 cigarette taxes
2009 - 0 cartons, 0 packs, 0 cigarette taxes
2010 - 0 cartons, 0 packs, 0 cigarette taxes
2011 - 0 cartons, 0 packs, 0 cigarette taxes
2012 - 0 cartons, 0 packs, 0 cigarette taxes
2013 - 0 cartons, 0 packs, 0 cigarette taxes to date.

I estimate I have around $3000 per year to spend on other things.

[cripplecreek]

I estimate I have around $3000 per year to spend on other things.

Like taxes.

[who_would_fardels_bear]

Maybe they should tax all GMO food that has nicotine derivatives in it put there to protect against insects?

[TomGuy]

State cig tax jumped up to $7.10/pack a few years ago.

[a fool in paradise]

Tobacco tax hikes do not pay.
Crime does not pay.

Tobacco tax hikes == no pay
Crime == no pay

Tobacco tax hikes == Crime

[Mark17]

State cig tax jumped up to $7.10/pack a few years ago.

I have not smoked even one single cigarette in my entire life, but it seems to me, that all this does, is start a black market for cigarettes.

[Squawk 8888]

That is precisely what’s happening. Cigarettes manufactured on Indian land are tax-free and there is a roaring trade here; legal smokes are $70-90 a carton while “Native” brands can be had on the street for $15-25/carton.

[JRandomFreeper]

All of the tobacco I have smoked today was 100% tax free, organic, and handpicked and cured by me. Legal as church on Sunday.

/johnny

[Jack Hammer]

It’s not about making money; it’s about making Chuckie Schumer feel good.

[Buckeye McFrog]

They use the tobacco tax to hook more takers into some freebie program (like “heath care for the chill’un”).

Then invariably people get tired of paying ten bucks for a pack of Marlboros and they quit smoking. So we gotta fund that program with some other tax....after all, it’s FOR THE CHILL’UN!!!!

[CSM]

Unexpectedly of course!