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

[Conservative til I die]

So now where are they going to make up the BUDGET DEFICIT?

You don't understand. Cigarette sales dropped 50% yet tax revenues rose, because the tax was raised about 2000%.

If you sell 200 boxes of cigarettes with a 10 cent tax, and then you sell 100 boxes of cigarettes with a $2.00 tax, which makes the city more money?

Of course, the city only cares about the tax. The 50% drop in sales is on cigarette packs which is where the delis and bodegas make the money. So they're the ones getting hurt.

[SheLion]

Bloomberg, who is a republican last I checked

Bloomberg was a DemocRAT who turned conservative to run for Mayor. Which STILL makes him a RINO!

[SheLion]

By the way Republican is spelled with a capitol 'R'.

You know it!

[KneelBeforeZod]

it's a tax on the poor who can't leave the city and denying sales to immigrant businessmen! we need sappers and strawmen (well maybe not stawmen) to start harping on this.

[Between the Lines]

I guess you're trying to tell me that there are no examples of Republicans cutting spending.

No what I said is you have never had a good word for any Republican unless he is a RINO. You changed the subject. You bash Bush constantly, you only praise a Republican when he is a Rino, and you defend liberals.

What I am saying is that you are a liberal in Freep's cloting.... admit it....

[ozone1]

"Of course, the city only cares about the tax. The 50% drop in sales is on cigarette packs which is where the delis and bodegas make the money. So they're the ones getting hurt. "

Thats the problem, a lot of small businesses depend on it for their profit. It also increases inventory costs. Profits are gone now and thus price increases for other products. An extra 25 cents for a sandwich or a bagle to make up for it.

[Linda Liberty]

Find me a Republican who cuts spending, and I'll praise her.

I'm not holding my breath waiting, though.

[ozone1]

LIEberman is coming to the coast in a couple of weeks for a fundraiser for cHILLARY Pingree, got any old sore-loserman signs?

[Gabz]

Surprisingly, they said that the cheapest cigs in the Middle Atlantic region can be purchased in the people's republik of MD.

I beg to differ - they obviously did not check out prices in Delaware. there are actually some name brands that can be purchased in Delaware even more cheaply than in Virginia, and Virginia is cheaper again than maryland.

[laredo44]

Seems to me the AP needs to do some fact checking.

29.2 million packs @ $.08 per pack = $2,336,000.
15.6 million packs @ $1.50 per pack = $23,400,000.

The difference is $21 mil., not $12.3.

[ozone1]

"In Maine, Gov. King can't balance his BUDGET without taxing the smokers. "

He can't even balance the budget with massive smokers money. HeHeHe

[BikerNYC]

The difference is $21 mil., not $12.3.

Yes, but of that $21 million, the City gets $12.3 million and the State gets the rest.

[SheLion]

HEY there, KS!

[Gabz]

Yes, but of that $21 million, the City gets $12.3 million and the State gets the rest.

Not true - the state also has a $1.50 per pack tax, so the state also gets its OWN $21mil.

[Just another Joe]

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.

With an attitude like that you can bet that you will have more smoke blown in your face. Not by the considerate smokers (they are out there), but by the inconsiderate ones.
With that same attitude the smokers will also enjoy watching YOU squirm when the govt excessively taxes something YOU like.

BTW, do you think smokers make ALL the litter you see?

[BikerNYC]

Not true

I was just referring to the $21 million mentioned in the article. It is true that the state gets the rest of that $21 million after the City takes its $12.3 million.

[Between the Lines]

Find me a Republican who cuts spending, and I'll praise her. I'm not holding my breath waiting, though.

Then why are you here in this forum???? Just to agitate and denounce us??? This forum’s purpose is not to bash Republicans as you would have it, nor is it here to defend liberals as you do. This forum was created to strengthen the conservative movement and what you do here is just the opposite. Why would you be a Freeper when you obviously have such liberal views? Do you hope to teach us? Enlighten us? Or are you just here to throw a wrench into the works?

[Linda Liberty]

Bloomberg was a DemocRAT who turned conservative to run for Mayor. Which STILL makes him a RINO!

I guess your point is, no actual Republican would cut spending, right?

I finally find a Republican who actually cut spending, and you guys are all ready to disown him.

BTW-- name another Republican who cut spending. I'm waiting, but I'm not holding my breath.

[Gabz]

I still beg to differ.

If the 15 mil or so packs of cigarettes sold in NYC with a 1.50 per pack tax generated $21 million, those same 15 million packs generated an additional $21 million for the state which also has a 1.50 per pack tax.

The city's tax and the states tax are the same - therefore will generate the identical revenue for each entity.

[Linda Liberty]

What kind of conservative movement is it if it doesn't
contain anybody who wants to cut spending?
I'm the only conservative here. You are just a closet
liberal who wants to support any politician on your team
no matter how badly he behaves. Since its only about winning,
to you, you support fully spending like a Democrat to try
to take away the Democrat's issues. If it brings on
a depression, that's only bad because the voters are likely
to protest.