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To: markomalley

I am certain organized crime has noted the potential profits of supplying consumers with a LEGAL product at lower prices and are responding just like they did during Prohibition. States are foolish to think that raising the price of cigarettes through confiscatory taxation will increase revenue. In response to higher prices the market will always buy less of the product or seek lower cost substitutes. How much will states now have to spend to collect their cigarette taxes?


38 posted on 07/20/2009 3:04:24 PM PDT by The Great RJ ("The problem with socialism is that you eventually run out of other people's money." M. Thatcher)
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To: The Great RJ
RJ - it is my understanding that the mafia is well involved with black market cigarettes. From a logical, rational point of view: would one rather be caught crossing a state line with an illegal amount of tobacco or a shipment of cocaine?

I can not recall the exact amount of cigarettes people are allowed to cross state borders with but the amount is very high. High enough so that people involved will make a very tidy profit.

Not too long ago I understand a 19 year old kid from NJ was busted with well over the amount legal for crossing borders. He had a very profitable operation going but managed to get pulled over by the police for a busted tail light.

42 posted on 07/20/2009 6:55:26 PM PDT by warsaw44
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