STARTLING SMOKE $IGNALS

New York Post ^ | 8/06/02 | DAVID SEIFMAN

[kattracks]

Cigarette sales here plummeted by half after the city hiked its tax by $1.42 a pack - but despite the decline in sales, tax revenues skyrocketed beyond projections, according to figures released yesterday.

Sam Miller, a spokesman for the Finance Department, said the city hauled in $23 million last month from smokers, compared to $2.3 million in July 2001.

[Koblenz]

I would venture that sales fell by more. People had to buy the tax stamps for all their inventory, and this includes stores that move their inventory slowly, and stores that had a significant drop in sales. For instance, if a store usually sold 100 cartons per month, they might keep 100 cartons in inventory. On July 1, they would have bought 100 of the new stamps. But then if they only sold 20 cartons, they'll still have a big inventory, and only need to buy 20 stamps this month, unless they decide they don't need a big inventory. We have to see what the numbers are for this month or even next month. Evaluating this in the first month is bad statistics.

[TomGuy]

Boston had its Tea Party.
NYC and many other cities and states need an effective Tobacco Butt Party, and butt some of these elected officials into early retirement.

[steve50]

"When they did a similar gigantic tax in Canada in 1992-93, they created a $1 billion smuggling industry," Lipsky pointed out the day before the tax took effect.

"Two years later, they repealed the tax."


Won't happen here. We'll start no knock raids and home/vehicle confiscation.

[YOMO]

What? Without firearms?

[metesky]

Sam Miller, a spokesman for the Finance Department, said the city hauled in $23 million last month from smokers, compared to $2.3 million in July 2001.

I don't believe this for a second. They did not raise the tax by twenty times which is what they would have had to do to get ten times the money from half the sales.

When he first proposed the tax, Bloomberg said he was trying to save lives as well as raise revenue.

Another DemocRat altruist, a man who changed to Republican strictly to run for mayor but who remains a Dem at heart and by his actions.

Officials concede that smokers can easily evade the tax by shopping outside the five boroughs, especially at tax-free Indian reservations, and on the Internet.

Duh!

Richard Lipsky, who represents thousands of small stores in the Neighborhood Retail Alliance, warned that the city was threatening the survival of many mom-and-pop businesses.

Politicians, despite the rhetoric, don't give one d*mn about their constituents struggling to make a living selling a legal product.

He also predicted a wave of smuggling.

Double duh!

[YOMO]

Cigarette sales here plummeted by half - but despite the decline in sales, tax revenues skyrocketed beyond projections....... "People are buying half as many cigarettes, but we're making five times as much money," boasted Jordan Barowitz, a spokesman for Mayor Bloomberg.............

Typical politians, brag about sticking it to the taxpayers.

Officials concede that smokers can easily evade the tax by shopping outside the five boroughs, especially at tax-free Indian reservations, and on the Internet.............


Standard thinking, tax it high, find the loopholes, choke the crap out of them slowly as the sheep get used to it.

"People throw the carton. They say, ‘What is this?' How can we explain?" ................

Population control and give me your money. The only difference between Jessie James and his gang and NYC is that J.J. and his boys used a gun and mask.

He also predicted a wave of smuggling............

Pass a law that encourages the masses to violate it. Yeah, that's the ticket.

[6ppc]

They did not raise the tax by twenty times which is what they would have had to do to get ten times the money from half the sales.

Actually they did raise it almost twenty times. The tax went from $.08 to $1.50 per pack.

[hobbes1]

On July 1, the city's tax soared from 8 cents to $1.50 a pack
I don't believe this for a second. They did not raise the tax by twenty times which is what they would have had to do to get ten times the money from half the sales

Yes, they did. or At least close enough for government work, plus the "half the sales" is also a round figure. It is actually closer to 54%......so the numbers are accurate.

[StockAyatollah]

Where are all the usual socialists who should be complaining that this is a heavily regressive tax?

[metesky]

I be "numbers challenged" and retain my right to show my ignorance to any and all.
;O)

More coffee, please!

[Afronaut]

In the World Financial Center they sell packs at 8 bucks! If you N-e-e-d a smoke you will pay... They take Credit Cards. Glad I quit.

[Maelstrom]

Staying posted Bump

[Ancesthntr]

Richard Lipsky, who represents thousands of small stores in the Neighborhood Retail Alliance, warned that the city was threatening the survival of many mom-and-pop businesses.

He also predicted a wave of smuggling.

As many have said before, "Duh!" However, we're not talking about your average Joe going to Jersey or some Indian reservation to get a trunk full of cigarettes to sell to his friends and neighbors (though this is undoubtedly happening). No, the morons in NYC have given a license to the Mafia and to terrorists to print money. They will take a truck to Virginia and load up with 1,000 cartons or more, and profit to the tune of many thousands of dollars.

Just like with Prohibition and drugs, if you make something that people want or need illegal, you don't stop its use - you only increase its cost, increase the profits of crime syndicates, increase corruption in government as the criminals bribe policemen & judges and increase disrespect for the law. These lessons have been learned so many times that it cannot be simple negligence on the part of NYC officials - it borders on criminal behavior. Of course, you get the government you deserve, and NYC is obviously no exception.

[Great Dane]

#6...... They are not being very astute, they will loose a lot more sales than 50%, they will also loose the business taxes from the small businesses going bankrupt.

[Gabz]

They are not being very astute, they will loose a lot more sales than 50%, they will also loose the business taxes from the small businesses going bankrupt.

Yes and then add on top of that the people that will wind up on unemployment or welfare, thus further cutting their spending ability and other businesses will begin to suffer.

These people who want to see smokers hit in the pocket can't see the forest for the trees.

[Indrid Cold]

Just think of how much money they'd make if they raised the tax to $50 per pack.