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New York Reaches Deal to Raise Cigarette Tax
New York Times ^ | June 18, 2010 | NICHOLAS CONFESSORE and DANNY HAKIM

Posted on 06/19/2010 4:26:36 AM PDT by reaganaut1

Cigarette taxes in New York would jump by $1.60 a pack under a tentative deal reached between Gov. David A. Paterson and legislative leaders, which would give New York the nation’s highest state cigarette taxes.

The proposal, which officials said Mr. Paterson would include in an emergency budget bill due for a vote on Monday, would also raise wholesale taxes on other tobacco products like chewing tobacco, bringing the tax on those products closer in line with those of cigarettes.

In New York City, which levies steep taxes of its own on tobacco products, a pack of cigarettes would come with a tax of $5.85, making it the nation’s first city to break $5, antismoking advocates said. That would bring the overall cost of a pack of premium cigarettes above $10 in many stores in the city.

The legislation will also include a plan to begin collecting taxes on cigarettes sold off the reservation by Indian tribes in New York, an issue that has provoked confrontations between State Police officers and protesting tribe members in years past.

The proposal would generate $440 million in revenue this year, helping close a state budget gap estimated at over $9 billion. But it is unclear whether there are enough votes to approve the plan in the State Senate, where Republicans have threatened to vote against any emergency budget bill that includes tax increases and some Democrats oppose efforts to collect taxes on cigarettes sold by the tribes.

Should the measure fail, the government would face an unprecedented shutdown. Should it pass, lawmakers must still meet to find ways to close the entire budget gap.

(Excerpt) Read more at nytimes.com ...


TOPICS: Government; News/Current Events; US: New York
KEYWORDS: taxes; taxincreases; tobaccotaxes
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I'm not a smoker but am sick of seeing smokers scapegoated. Many of them will find ways to evade these sky-high cigarette taxes, so that the revenues will come in below projections. Good. In general, if there is not enough political support to fund government with a broad-based such as a sales tax, the size of government needs to be cut.
1 posted on 06/19/2010 4:26:36 AM PDT by reaganaut1
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To: reaganaut1

I’m glad I quit when they went to 30 cents a pack in the machine in the dorm.


2 posted on 06/19/2010 4:30:32 AM PDT by Past Your Eyes (No matter where you go there are always more stupid people.)
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To: reaganaut1

Time to tax marijuana, smack, cocaine and heroin. Those are the drugs that have created the underclass that looks to the Gubmint for subsidized food, shelter and medical care.

Paygo!!!


3 posted on 06/19/2010 4:32:58 AM PDT by sodpoodle (Despair - Man's surrender. Laughter - God's redemption)
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To: reaganaut1
"The proposal would generate $440 million in revenue this year..


I don't know much, but I do know every time policticians raise a tax and says it will raise x amount of money, it never does. It more often then not causes the amount to go down.

Why, because people either do without, or find other sources for the product being taxed.

Those running black markets for cigarettes are going to get rich.

When will policticians ever learn?

But you know what, those in New York keep electing these clowns so they are getting the government they wanted.

4 posted on 06/19/2010 4:37:53 AM PDT by CIB-173RDABN
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To: CIB-173RDABN

This is nothing more than legal prohibition. It’s extortion.


5 posted on 06/19/2010 4:43:30 AM PDT by Sacajaweau (What)
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To: CIB-173RDABN
But you know what, those in New York keep electing these clowns so they are getting the government they wanted.

I see Freepers post this all the time. I live in NY. I didn't vote for these clowns. Did I get the government I wanted?

6 posted on 06/19/2010 4:48:41 AM PDT by DJ MacWoW (If Bam is the answer, the question was stupid.)
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To: DJ MacWoW

I live in California, tell me, who has it worse.

And yes, even as minorities we get the government we wanted because we still live where we do. When we have had enough, we will move.


7 posted on 06/19/2010 4:50:20 AM PDT by CIB-173RDABN
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To: reaganaut1
More money for the Mohawks.

Watch for increased traffic across the river in the Akwasasne Reserve.

8 posted on 06/19/2010 4:52:31 AM PDT by Clive
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To: DJ MacWoW
I see Freepers post this all the time. I live in NY. I didn't vote for these clowns. Did I get the government I wanted?

You're right. I always refer to the people who vote in regimes like the ones under which you live as "the voting majority of %$@$$@ers" instead so that good people like you are excluded.

I live in MD and to say I have any sort of effective representation in our state government here would be a complete and total lie as well.

9 posted on 06/19/2010 4:55:11 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: CIB-173RDABN

We want to move too but Hubby’s job is here. *sigh*


10 posted on 06/19/2010 4:55:45 AM PDT by DJ MacWoW (If Bam is the answer, the question was stupid.)
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To: pnh102

Frustrating as heck, ain’t it. And yet, I live in a “red” area. However in the last 10 years, we had an influx of blue city people moving in.


11 posted on 06/19/2010 4:58:33 AM PDT by DJ MacWoW (If Bam is the answer, the question was stupid.)
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To: Past Your Eyes

I guit ten years ago when they went to 3.30 a pack from 2.85.
They said the money was going to fund some health care scheme, not from me it didnt


12 posted on 06/19/2010 5:00:59 AM PDT by italianquaker (obama all hat no cattle)
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To: reaganaut1
I wonder how much tax revenue they are actually losing due to smokers quitting, others cutting down and people buying out of state.

Since the state is so dependent on the taxes now, one would think they would lower them substantially to encourage the smokers to buy in state....But we know how democraps and taxes work.

13 posted on 06/19/2010 5:02:46 AM PDT by Hot Tabasco (Peanut butter was just peanut butter until I found Free Republic.........)
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To: Hot Tabasco

...and notice that they don’t even use the lame excuse of funding their health care due to the burden smokers put on the system.........At least they’re up front about it now.


14 posted on 06/19/2010 5:04:42 AM PDT by Hot Tabasco (Peanut butter was just peanut butter until I found Free Republic.........)
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To: DJ MacWoW

I have some personal reasons for staying, but I am making plans on leaving as soon as possible.


15 posted on 06/19/2010 5:15:12 AM PDT by CIB-173RDABN
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To: Past Your Eyes
My last pack of Winstons cost $.50.
16 posted on 06/19/2010 5:17:59 AM PDT by Eric in the Ozarks (Impeachment !)
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To: reaganaut1
PA will see even a bigger jump in sales...
17 posted on 06/19/2010 5:20:45 AM PDT by Chode (American Hedonist *DTOM* -ww- NO Pity for the LAZY)
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To: DJ MacWoW
Frustrating as heck, ain’t it. And yet, I live in a “red” area. However in the last 10 years, we had an influx of blue city people moving in.

Oh man that DOES suck indeed. These damn liberal parasites. Everywhere they live they turn into excrement... and the only way they can survive is to move to another area to ruin anew.

Sounds like Agent Smith's definition of a virus.

18 posted on 06/19/2010 5:22:24 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: reaganaut1
This will just promote more crime and subverting otherwise honest smokers into buying black market. As the value of the smuggled cigarettes rise, it will also encourage violent gangs to defend their loads like the cocaine smugglers in the Southwest. We will see MS-13 like gangs moving in and encounters with AK47 toting guards.
19 posted on 06/19/2010 5:25:16 AM PDT by Truth29
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To: reaganaut1

Excellent news for New York’s organized crime sector.

Cigarette smuggling is suddenly a lot more profitable.

The long term viability of Paterson’s plan is really suspect. How can one base the fiscal solvency of a rapidly growing government by taxing a product that is decreasing in popularity?


20 posted on 06/19/2010 5:25:25 AM PDT by I_Like_Spam
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