Ravenwood - 07/13/04 07:15 AM
The price of cigarettes is about to jump in Fairfax County. In Virginia, Fairfax and Arlington are the only two counties permitted to tack on per pack cigarette taxes; and they must not exceed the state tax. When Virginia raised the state tax 900%, Fairfax was free to do the same. The only thing they are fighting about now is how to spend the money.
At least they aren't pretending that it will discourage people from smoking either; this is purely a ploy to increase tax revenue. When asked if the tax hike proposal might be voted down, Supervisor Elaine McConnell, Springfield Republican, said, "Oh, no. There's no doubt. We need the money."
And that's truly the government way. When you need more money just go out and take it.
Category: Pleasure Police
Comments (6) top link me
And ignore the fact that raising the tax will encourage smuggling.
Well, no, ignore is actually incorrect.
If people start smuggling, that creates an opportunity for more revenue through asset forfeiture!
It's a win-win!
Posted by: Kevin Baker at July 13, 2004 8:58 AMUmm, taxing a non-essential like cigarettes isn't quite the same as "taking it". People have a choice on that one. Gotta say that I think you're normally right on target, though. Love the blog.
Posted by: Kerry A at July 13, 2004 11:02 AMKerry,
In my humble opinion, all taxes are seized regardless of whether or not they are on essential goods and services. Sales taxes mostly affect non-essential spending. As do gas taxes and automobile taxes. (You don't really need your car.)
Just because something is a luxury or considered non-essential, doesn't necessarily mean that the taxes on those items are voluntary. (At least in my point of view.) When it comes to cigarettes, where most users are addicts, the choice to pay the tax seems even less voluntary.
On the flip side of the coin, there is the tax on the businesses. Since Fairfax is implementing a tax that can easily be avoided by crossing a border or smuggling, it is even more dubious. Basically they are hamstringing local businesses, or at the very least encouraging them to set up shop just down the road in Prince William or Louden Counties where the tax rates are lower.
Posted by: Ravenwood at July 13, 2004 11:10 AMLet me be the first on the "This Will Actually Lower Cigarette Tax Revenues" bandwagon.
Smokers will go where the cheap smokes are, and buy in bulk. Neighboring counties will enjoy a windfall.
Posted by: Heartless Libertarian at July 13, 2004 2:48 PM900% increase?? Shirley, you must be exaggerating! What was it before, what is it now?
Posted by: Drew at July 13, 2004 11:02 PMDrew,
It was 2 cents before and was increased to 20 cents this year and 30 cents next year.
20 cents - 2 cents is an 18 cents increase. 18 / 2 is 9 * 100 is 900%. If you go by the 30 cents figure, it's even more.
And don't call me Shirley.
Posted by: Ravenwood at July 14, 2004 6:12 AM(c) Ravenwood and Associates, 1990 - 2014
