Well, first of all, the black market is illegal, and most people are just not going to break the law.
secondly, most users WILL keep buying cigarettes in the state,and pay the higher tax.
Thirdly, what few people will buy out of state, then so be it. If the state of Kentucky thinks it can make more money by taxing cigarettes at a lower price, and making it up on volume, then so be it. It is like air line tickets, there are a hundred different prices, everybody pays a different price. Some people get really cheap rates from the internet, and others, still pay the high price from the airline.
I really dont think too many people will not pay the high price, because those people long ago started rolling their own and pay no tax - but there are only so many of those kinds of people(people against any tax). There are basically 2 kinds of people : those who dont want to pay any tax, and those who will pay whatever the state says - esp if it is for a good cause - like schools, etc. There are really not very many people in the middle.
I beg to differ with you. Most smokers,law abiding in all other ways,will avoid paying taxes on cigarettes even if they are breaking the law.
The reason for this attitude is that smokers are being banned from most public places in many states and then they are being heavily overtaxed.
What other product do you know that is taxed as much as 100% ?
Smokers are politically incorrect so they are fair game----I just hope coffee drinking doesn't become "unpopular" in the next few years or the price could double on that too.
Well, first of all, the black market is illegal, and most people are just not going to break the law.
Yes Sandy, the black market IS illegal but has been in existence ever since free commerce has been attempted to be handcuffed by the government. The black market has been accepted and has flourished worldwide when the market forces could no longer support the tyrannical excises imposed by your respective governments. The black market has always been and always will be the final relief against your money hungry government!
When push comes to shove SandyB, people WILL break the law. It is obvious to me that you and your vices have not yet been approached by your government necessitating further government intervention.
Yes, smokers in the state will continue to purchase their cigarettes in state until they realize (as I and all my smoking friends have done) the immense savings to them by purchasing out of state. The ignorant masses of today will eventually wake up tomorrow. And when that happens, as it ultimately will (evidence California and their fat taxes) your state, realizing they can no longer depend on the tyrannical tax revenues on cigarettes will have to seek out other sources to tax in order to keep their promises. And that target will most likely be your gasoline and sales taxes.
If the state of Kentucky thinks it can make more money by taxing cigarettes at a lower price, and making it up on volume, then so be it.
The above is a nonsensical statement SandyB, the state of Kentucky grows and produces tobacco products and merely taxes the sales of such products. As long as the state produced products are sold at a lower price than competitive states, then they will continue to reap profits.
Now listen carefully: THE ONLY THREAT TO THEIR LIVELIHOOD IS FROM THE STATES SUCH AS NEW YORK WHO HAVE NOW PROHIBITED THE SALE AND SHIPMENT OF INTERNET SALES OF TOBACCO PRODUCTS INTO THEIR STATE!
FURTHERMORE, MY FAVORITE TOBACCO SITE "DIRTCHEAPCIGS.COM" IS NOW GOING OUT OF BUSINESS DUE TO THE TYRANNICAL LAWS BEING IMPOSED BY THE STATES WHO ARE BEING DENIED THEIR FAIR SHARE OF THE MONEY!!!!!!!!!!!
Isn't your government a wonderful thing? Another legitimate, law abiding company now driven out of business!!!!!!