How the Cigarette Tax Rewards Crime
George Mason's Walter Williams has penned a wonderful piece about tobacco taxes. An excerpt:
While it's politically popular to impose confiscatory taxes on America's 40 million tobacco smokers, there are a number of consequences one might consider, but let's start out with a quiz. If a carton of cigarettes sells for $160 in New York City, and $35 in North Carolina, what do you predict will happen? If you answered tons of cigarettes will be going up I-95 from North Carolina to New York City, go to the head of the class.
Smuggling cigarettes is illegal; so the next quiz question is: Who is most likely to engage in cigarette smuggling? It's a mixed answer, but for the most part, organized smugglers will be people with a high disregard for the law.
Paul Ibrahim
in Taxes, Crime, George Mason University
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