New Tax Lowers N.Y. Cigarette Sales

AP | 8/06/02

[kattracks]

NEW YORK, Aug 06, 2002 (AP Online via COMTEX) -- Cigarette sales in New York plummeted almost 50 percent in July after the city raised the tax on each pack from 8 cents to $1.50, according to new figures from the city's department of finance.

New Yorkers purchased 15.6 million cigarette packs last month, down from 29.2 million packs in July 2001. But because the tax was so much higher, millions more tax dollars poured into city coffers - $12.3 million, compared to $2.3 million during the same period last year.

The new tax, which Mayor Michael Bloomberg supported to help close a record budget gap, drove the price of some name brands to more than $7 per pack.

There are no studies yet to determine whether New Yorkers are quitting smoking or simply taking other avenues to fix their nicotine cravings, such as online mail order buys or trips out of town.

Copyright 2002 Associated Press, All rights reserved

[Bella_Bru]

There are no studies yet to determine whether New Yorkers are quitting smoking or simply taking other avenues to fix their nicotine cravings, such as online mail order buys or trips out of town.

Let's see...we have seen several articles on the "evil" smokers "smuggling" smokes in from other states....so I think I know the answer to this one.

[grania]

So, rich commuters coming to their jobs from homes in New Jersey or Connecticut can buy cheaper cigarettes every day, at home. And those not so fortunate have to make other arrangements to get their cigarettes. And those less aware of those options (probably the most needy) end up paying the tax for everyone else...and it works because overall the revenues increase.

And the governments will still want their tobacco settlement money because of the financial burden smokers cause. Even though governments almost always increase the cigarette tax when the budget needs balancing.

Maybe, just maybe, sometime a government will do something really radical. I'm thinking maybe spend less to balance the budget?

[TomGuy]

There are no studies yet to determine whether New Yorkers are quitting smoking or simply taking other avenues to fix their nicotine cravings, such as online mail order buys or trips out of town.

So, they will need probably a $40 million study to determine which--quitting or taking other avenues--thus, eating up the original intent of the tax to increase revenues. Government in action.

[ken5050]

Well, obviously, since the new tax has been so successful inthat it has cut cigarette sales by 50%, they should immediately double the tax again......at that rate, no one in NYC will be smoking by year's end..

[YOMO]

Cigarette sales in New York plummeted almost 50 percent in July .........The new tax, which Mayor Michael Bloomberg supported to help close a record budget gap.............There are no studies yet to determine whether New Yorkers are quitting smoking or simply taking other avenues to fix their nicotine cravings, such as online mail order buys or trips out of town.........

Cigarette sales drop not predicted by politicans? I don't think so. So now where are they going to make up the BUDGET DEFICIT? It figures that they would need a study to figure out when you tax the $hit out of a product finally people will stop buying a legal product. OK guys what is next to be taxed?

[goldstategop]

Mayor Bloomberg and NY's liberals realized the increased tobacco taxes were costing the city MORE revenue than they were supposed to be raking in for it. Hence the cut in the taxes. Which means city revenues should go UP for a change. I guess its too much for other liberals, addicted to the idea tax increases are the only way out of a budget hole, to cotton onto the fact cutting taxes actually INCREASES government revenues. But hey let's not give em any ideas, shall we? ;-)

[TomGuy]

Cigarette sales in New York plummeted almost 50 percent in July

tax the $hit out of a product finally people will stop buying a legal product.

Cigarette [blackmarket and internet] sales in New York plummeted [increased] almost 50 percent in July.

Visualizing....coming attraction:
Dark alleyway
Late at night
Clandestined meeting
Strangers voices
Hey, Mac...
Sorry, no Mac...Burger King, though
How much?
$7.50
With fries?
Yeh, ok, but the catsup's extra.
Let me have 2 orders. $15 bucks! Well, that's still half what they are now with the new fast-food-anti-fat-for-your-health-city-needs-revenue tax.

[Fraulein]

Cigarette Smuggling

[goldstategop]

NYC will never be able to tax its way to fiscal sanity. I should correct my previous post to note that NY's city government hasn't gotten around to cutting the taxes yet. It'll take quite a while for the self inflicted wound to sink in as cigarette smokers shop elsewhere. Let's pray the liberals never do figure out they would actually get more if they decided the beleagured John Citizen taxpayer could pony up less.

[tcostell]

So, rich commuters coming to their jobs from homes in New Jersey or Connecticut...

Is everything about class warfare?...Have you seen real estate prices in Manhattan lately?

[goldstategop]

Bwahahaha! Except if you're a tony liberal living in the Hamptons.

[meenie]

You peoples know this is just a government attempt to save you from your own bad judgement. The taxes mean nothing. The savings from health problems will save more than any tax levied on cigarettes. Yada-yada-yada. The taxes sure come in handy, too.

[grania]

Is everything about class warfare?...Have you seen real estate prices in Manhattan lately?

And those residents will find a way to get around the tax. It's the poorest, least informed who will pay the excess tax, as the government increases its take from the cigarette tax.

You say "class warfare"; I say "compassionate conservatism". It's all words.

[Born to Conserve]

Ah, payback! For all the smoke blown in my face, for all the cigarette butts and litter I have to see -- taxes are universally dumb, but I am enjoying watching the smokers squirm. If, as a group, they had been a little more considerate, maybe I would feel different, but they are almost perfectly selfish, so, ENJOY!

[randita]

The new tax, which Mayor Michael Bloomberg supported to help close a record budget gap, drove the price of some name brands to more than $7 per pack.

Does this mean that the tax will be rescinded once the budget gap is closed? Yeah...

I just ran across a couple of women from NY stocking up on cigs here in PA. They told me that a carton of cigs costs over $70 in NY. Surprisingly, they said that the cheapest cigs in the Middle Atlantic region can be purchased in the people's republik of MD.

[general_re]

Does this mean that the tax will be rescinded once the budget gap is closed? Yeah...

Sure! Just like the state stopped charging tolls on the Thruway once it paid for itself! Like they originally said they would!

Errr, wait a minute... ;)

[Hostage]

And then they will increase the enforcement budget to curtail the increase in tobacco black market activities, etc.

But to them it's Ok; government grows, life is good.

[arm958]

It'll take quite a while for the self inflicted wound to sink in as cigarette smokers shop elsewhere

And they are shopping elsewhere. It's both sad and amusing to watch these politicians in action. They simply don't understand that people are far too creative to blindly submit to oppressive taxation.

[arm958]

Sure! Just like the state stopped charging tolls on the Thruway once it paid for itself! Like they originally said they wouldI>

Same with New Jersey and the Garden State Parkway. That same promise was issued back in the 1950's. The Parkway has been paid off for over 30 years now, but the tolls continue.