The best laid plans of mice and Liberals.
When first tried from 1920 to 1933 prohibition became a boon for the criminal element. Now some 85 odd years later it’s Déjà vu all over again.
New York is reaping the whirlwind of sky-high cigarette taxes with a wave of smuggling decimating the state’s revenue.
New York holds the dubious honor of having the highest cigarette taxes in country, with the average pack of smokes in New York City costing as much as $10.60.
New York raised taxes on cigarettes to $4.35 in 2010 from $2.75. In total, cigarette taxes have increased by 190 percent since 2006. The sharp rise has resulted in a raft of unintended consequences which are dealing a significant blow to the state’s finances.
New York State Comptroller Thomas DiNapoli reports New York’s revenue from cigarette taxes has plunged by $400 million over the past five years.
According to the The New York Post, a separate study by National Academies of Sciences, Engineering, and Medicine shows the state lost a hefty $1.3 billion in uncollected taxes each year because smokers responded to higher prices not by shelling out more cash at the store but by turning to the black market and crossing state lines.
The last 10 years have a been a boon to organized crime, with 58 percent of New York’s cigarettes supplied from out-of-state, according to the Tax Foundation. The number of packs bought paying the full tax has also collapsed by 62 percent.
But it’s not only New York that’s losing out from the high rate of smuggling. The Bureau of Alcohol, Tobacco, Firearms and Explosives estimates states lose $5.5 billion in revenue thanks to cigarette smuggling.
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When first tried from 1920 to 1933 prohibition became a boon for the criminal element. Now some 85 odd years later it’s Déjà vu all over again.
New York is reaping the whirlwind of sky-high cigarette taxes with a wave of smuggling decimating the state’s revenue.
New York holds the dubious honor of having the highest cigarette taxes in country, with the average pack of smokes in New York City costing as much as $10.60.
New York raised taxes on cigarettes to $4.35 in 2010 from $2.75. In total, cigarette taxes have increased by 190 percent since 2006. The sharp rise has resulted in a raft of unintended consequences which are dealing a significant blow to the state’s finances.
New York State Comptroller Thomas DiNapoli reports New York’s revenue from cigarette taxes has plunged by $400 million over the past five years.
According to the The New York Post, a separate study by National Academies of Sciences, Engineering, and Medicine shows the state lost a hefty $1.3 billion in uncollected taxes each year because smokers responded to higher prices not by shelling out more cash at the store but by turning to the black market and crossing state lines.
The last 10 years have a been a boon to organized crime, with 58 percent of New York’s cigarettes supplied from out-of-state, according to the Tax Foundation. The number of packs bought paying the full tax has also collapsed by 62 percent.
But it’s not only New York that’s losing out from the high rate of smuggling. The Bureau of Alcohol, Tobacco, Firearms and Explosives estimates states lose $5.5 billion in revenue thanks to cigarette smuggling.
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