igorb
April 22nd, 2009, 2:08 am
“New Era of Prohibition” or “Who benefits from the tax hike on cigarettes”.
The cigarette tax continues to be increased by the Government constantly. Most States are trying to penalize the smokers for their “bad behavior” to balance their mismanaged and out-of-control budgets. Regular price for a pack of Marlboro is ranging from $7 to $9 (!) across the United States. Average smoker is spending more money on the cigarettes per month than a monthly payment for a brand new car.
Now, let’s look at the reality.
Average Joe The Smoker must be crazy to pay $9 for a pack of cigarettes. No need to be a Government official to see it, unless he is out of touch with the ordinary folks. It means: the Government officials who legislate the tax increase on any industry, as they’re pleased, are creating the biggest field of criminal opportunities since the Great Depression during the Prohibition of Alcohol!
Who benefits from the more expensive cigarettes?
California estimates about 15% of all Tobacco sold in the State went with unpaid tax at cost of $276 million in 2006. New York lost $576 million in the same year. It’s an official estimate, but in reality it’s probably a lot more. And it will be definitely more with the new tax raise!
As we know, any business which is trying to make more revenue from their product has to advertise that product. Logically, if Government wants to raise money from the cigarette smokers, they have to advertise the product (cigarettes) on TV and all over the place heavily, so they can raise a huge profit from the paid taxes. Is that right? But that’s only logically. When Government is trying to interfere with the business – there is no logic! That’s why the Government has to stay out of the Private Enterprise. It became obvious, that raising cigarette taxes causes losses instead of gains. Plus it increases tons of tax-payers money spending on the avoidable criminal enforcement. U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, said the agency has taken notice of the increased smuggling. ATF is refining its national strategy for fighting cigarette trafficking and has substantially expanded its investigations, opening up some 700 new cases in the past five years.
Average Joe The Smoker can easily buy cigarettes from the Internet, Indian Reservation or any grey market guy on the corner. And ships arrive from China carrying cargo containers filled with counterfeit cigarettes on the daily basis. Bottom line: Cheap cigarettes of unidentified origin are easily available everywhere. Why pay more?
I’m not an advocate of a cigarette sale, but I’m against the Government to have an ability to decide to what industry to raise taxes as they are pleased. Who is next? McDonalds-unhealthy food – let’s increase their sales tax! Cheese producers – clogs your heart –let’s put taxes on cheese. Why not?
By interfering with private business, instead of logic and profit, the Government is creating a DEFICIT, which motivates a lot of illegal activities, which always has been the biggest problem of any Socialist country, which we are slowly becoming into…
Igor Benderskiy
Los Angeles, CA
The cigarette tax continues to be increased by the Government constantly. Most States are trying to penalize the smokers for their “bad behavior” to balance their mismanaged and out-of-control budgets. Regular price for a pack of Marlboro is ranging from $7 to $9 (!) across the United States. Average smoker is spending more money on the cigarettes per month than a monthly payment for a brand new car.
Now, let’s look at the reality.
Average Joe The Smoker must be crazy to pay $9 for a pack of cigarettes. No need to be a Government official to see it, unless he is out of touch with the ordinary folks. It means: the Government officials who legislate the tax increase on any industry, as they’re pleased, are creating the biggest field of criminal opportunities since the Great Depression during the Prohibition of Alcohol!
Who benefits from the more expensive cigarettes?
California estimates about 15% of all Tobacco sold in the State went with unpaid tax at cost of $276 million in 2006. New York lost $576 million in the same year. It’s an official estimate, but in reality it’s probably a lot more. And it will be definitely more with the new tax raise!
As we know, any business which is trying to make more revenue from their product has to advertise that product. Logically, if Government wants to raise money from the cigarette smokers, they have to advertise the product (cigarettes) on TV and all over the place heavily, so they can raise a huge profit from the paid taxes. Is that right? But that’s only logically. When Government is trying to interfere with the business – there is no logic! That’s why the Government has to stay out of the Private Enterprise. It became obvious, that raising cigarette taxes causes losses instead of gains. Plus it increases tons of tax-payers money spending on the avoidable criminal enforcement. U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, said the agency has taken notice of the increased smuggling. ATF is refining its national strategy for fighting cigarette trafficking and has substantially expanded its investigations, opening up some 700 new cases in the past five years.
Average Joe The Smoker can easily buy cigarettes from the Internet, Indian Reservation or any grey market guy on the corner. And ships arrive from China carrying cargo containers filled with counterfeit cigarettes on the daily basis. Bottom line: Cheap cigarettes of unidentified origin are easily available everywhere. Why pay more?
I’m not an advocate of a cigarette sale, but I’m against the Government to have an ability to decide to what industry to raise taxes as they are pleased. Who is next? McDonalds-unhealthy food – let’s increase their sales tax! Cheese producers – clogs your heart –let’s put taxes on cheese. Why not?
By interfering with private business, instead of logic and profit, the Government is creating a DEFICIT, which motivates a lot of illegal activities, which always has been the biggest problem of any Socialist country, which we are slowly becoming into…
Igor Benderskiy
Los Angeles, CA