Saturday, September 27, 2014

I've got a better idea. Why don't we just quit taxing the things to death and take the profit motive out of the smugglers' hands?

Former ATF Agent: Empower Police To Nab Terrorists Cigarette Smuggling.
Since 2006, the tax rate on NYC cigarettes has gone up 190 percent — consumers now pay $4.35 to New York and $1.50 to NYC per pack, which often cost more than $12. Consumers in nearby states, such as Virginia and Delaware on the other hand, pay closer to between $5 and $8 a pack. “When there’s such a disparity, it increases criminal activity,” Mariano said. “I know that for a fact.” Smugglers can sell a pack for $8 in New York — well below the market price — and still profit at $3 a pack, Mariano explained. The high profits, combined with the ease of smuggling and “ridiculous” tobacco smuggling laws that amount to what he calls a slap on the wrist, has led all sorts of criminals to use cigarettes as currency.

2 comments:

Harry_the_Horrible said...

If I had the connections and the time, I'd smuggle cigs to NY and NYC.

Woodswalker said...

HmM...didnt we do this with alcohol as well, with the same results?