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To: Dan from Michigan

I wonder if higher cigarette taxes have ever brought in more revenue than lower ones do? I suspect not, because I haven't seen that story in mainstream media.
Or maybe they count the fines for smugglers as the increased revenue?


3 posted on 05/16/2004 6:52:21 PM PDT by speekinout
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To: speekinout
I wonder if higher cigarette taxes have ever brought in more revenue than lower ones do?

For the first year the higher taxes normally DO bring in higher revenue. Until the consumer figures out how to get around the higher tax thereby giving the state government NOTHING of the higher tax.

The black, or grey, market, the internet, tribal tobacco shops, adjoining states, etc.
Or, you can just stuff your own and only pay the sales tax, not the extra tax.

36 posted on 05/17/2004 6:12:18 AM PDT by Just another Joe (Warning: FReeping can be addictive and helpful to your mental health)
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