Cigarette Taxes and you


Most people that don't smoke think that cigarette taxes will have no impact on their lives. Well, consider this. For the past several years, states have been chomping at the bit to institute a tax on goods sold over the internet. However, States are currently prevented from taxing across state lines by federal law. Congress revisits the issue every few years and renews the moratorium on internet taxation.

Now think about the prohibitive local sales taxes on cigarettes that have been on the rise lately. The behavior modification taxes have already resulted in more and more smokers shopping for mail order cigarettes on the internet. How long before the States start pressuring the federal government to let them do something about the cigarette tax revenue they are losing via mail order and internet sales? Now, how big is the leap between lost cigarette tax revenue and lost sales tax revenue?

Remember folks, you heard it here first.



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Comments

It's just a matter of time. I have friends in New Jersey who report that it's now actually cost-effective to drive down to North Carolina once a month and pay the four cents a pack, versus whatever implausible amount is levied in Torchland.

Posted by: CGHill at October 11, 2002 10:18 PM

Perhaps you should mention to them that cigarette taxes are lower in Virginia. It may save them a few hundred miles.

Posted by: Ravenwood at October 11, 2002 10:34 PM

They're from Joisey. You think they know the difference between Virginia and either of the Carolinas? :)

Actually, I think at least one has some familial ties among the Tar Heels.

Posted by: CGHill at October 12, 2002 5:53 PM

Actually I grew up in Virginia. I noticed that Jersey's smell was worse from Virginia than NC, so they must be closer.

I guess if they've got family down there, it's a moot point.

Posted by: Ravenwood at October 12, 2002 7:36 PM

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