Tobacco taxes

Now that the no-smoking law has gone into effect for restaurants, and given that the tax on the evil weed will go up on September 30, this editorial from the NYT seems germane. Y'all may know that the tax in NYC went into effect yesterday, raising the price of a single pack of cigarettes to nearly $7.00.

Politicians love "sin taxes." They are seen as targetting only people who are doing things society deems "bad," so any grumbling from that population can be discounted. They also keep the shirttails of the pols clean with the majority of the voters. But I wonder: at what point does the law of diminishing returns come into effect? Suppose many smokers suddenly quit, because the price becomes unaffordable? Then the lovely source of revenue dries up, the budget is imbalanced again, and the pols have to go do some hard work to find other sources of cash, or cut expenses somehow.

This particular variety has the oft-quoted additional benefit of theoretically pricing young kids out of the tobacco market, but there too I wonder: when does a black market emerge? Canada has a serious problem with this, because their "First Nations" tobacco sales are not subject to federal taxes (as I understand it); thus the prices on the reserves are much cheaper, and the product is occasionally diverted to the broader population. Could that happen here? Well, there was a story in the news last week about two North Carolina men diverting tobacco sales to a black market and using the money to support Hezbollah and Hamas.

Any thoughts?

Comments

Well, when "the lovely source of revenue dries up" and smokers and drinkers are finally a dying breed (as if!), maybe then they'll finally legalize marijuana and prostitution and tax that to death.

Hawaii is already seeing the 'black market' effect on cigarettes, too, what with folks bringing cases of the stuff back from Southeast Asia. Half the stores that sell stamp-less cigs don't even know their suppliers aren't on the up and up.

I imagine that we will also have an increase in shoplifting and theft of ciggies. $7.00 is a lot of money if you are poor and addicted. (And who is filthy, stinking rich these days?) The other thing is that there will be a bunch of very irritable law abiding people out there trying to quit. (cringe, shudder)

Possibly including me, Ali! (Quitting, not shoplifting!) ;)

Fortunately it is still possible to buy decent cigarettes for $2.25/$2.50 a pack, either at Maunakea Marketplace or the discount shop across from the Convention Center.
That will, of course, go up twenty cents when stage one of the new tax goes into effect.

And, of course, even cheaper ... buy Top and roll 'em (even if it does hurt a little to be rolling something no more interesting than tobacco.)

Stories like these only serve to remind me how and why I managed to quit smoking cold turkey.

I steadfastly refuse to say I quit smoking. "Quit" implies a willful, conscious decision to stop. I made no such decision. I just stopped smoking.

I'm not above bumming a cigarette off a person, and I'm open to the possibility of falling off a wagon I had no intention of jumping on in the first place.

But if cigarettes are going to start costing more than comic books, I just may not go back. Either that, I'll stick to bumming.

Here in Austin, comic books and cigarettes are just about the same price.

Post a Comment