How else can Safeway FLY milk into my state and sell it for cheaper than locally produced milk? Surely if they had to put it on a ship and take 7-10 days to get it here that the tradeoffs for price and freshness might shift a lot.

Politicians also presume that demand is inelastic — that irregardless of price (i.e. taxes) the demand will remain the same — perhaps the demand might remain the same but where the demand goes to get the item will likely shift to some extent and ease of transportation has a role to play.

Not just cigarettes. Higher taxes on just about anything generates a black market or, as some refer to it, an ‘underground economy’

MaiDee on December 15, 2012 at 3:32 PM

I can hardly wait for the “Health Easy” clubs which Obamacare will creeate!!!

Imagine:

Hey mister…wanna see my sister??? She’s Internal Medicine!!! My other sister does eye exams!! And Guido’s got your drugs: just go to the back of the liquor store and ask for some of the “Special Label” stuff!!

’800 raids per month’.

26 ‘raids’ per day average.

BULLLLLLLL crap.

They haven’t the funds nor the man-power nor even the time to carry out 26 raids per day every month — month after month after month — for something as asinine as bootleg cigarettes.

SD Tom on December 15, 2012 at 8:40 PM

Oh my gracious…that IS nuts! Thanks for doing the math for us!

Cook County investigators have been raiding stores across the county that have been breaking the law, and ripping off taxpayers of millions of dollars, by selling cigarettes without proper taxes…

It’s funny how the media always look at foregone tax revenue as “ripping off” the state, instead of noting that taxpayers benefit from lower taxes.

(Yeah, the writer tried to cloak his meaning with that “ripping off taxpayers” krep, but that’s obviously not what he meant.)

Cook County investigators have been raiding stores across the county that have been breaking the law, and ripping off taxpayers of millions of dollars, by selling cigarettes without proper taxes…

About 800 raids take place each month.

’800 raids per month’.

26 ‘raids’ per day average.

BULLLLLLLL crap.

They haven’t the funds nor the man-power nor even the time to carry out 26 raids per day every month — month after month after month — for something as asinine as bootleg cigarettes.

Get outta town!

Maybe 8 raids per month. 2 per week. Maybe…

Such a load. If you’re going to employ the tactic dujour of our present Government in an effort to scare people into compliance — at least LIE within the realm of believability.

I think this would also happen if the so called “Fair Tax” were introduced.

Dasher on December 15, 2012 at 7:49 PM

As opposed to what we have now, fool?

Not just cigarettes. Higher taxes on just about anything generates a black market or, as some refer to it, an ‘underground economy’.Thus we have a seeming paradox-higher taxes usually generate lower revenues. In the case of cigarettes the demand for CHEAPER cigarettes increases sharply-making it profitable for black marketeers to operate thus creating a huge spike in supply to meet this demand. Obviously when the demand and supply of cheaper cigarettes rise the demand and hence supply of more expensive cigarettes drop. Since NY State gets NO TAX AT ALL from the cheaper cigarettes, revenues drop. Elementary economics, my Dear Watson, which somehow seems to evade the fogged brains of liberal nincompoops.

MaiDee on December 15, 2012 at 3:32 PM

I think this would also happen if the so called “Fair Tax” were introduced.

Example: the modern Mafia would not exist today except for Prohibition

Humphrey on December 15, 2012 at 7:13 PM

ROTFLOL. That BS pothead lie again.

The mob existed long before booze was banned and it would still exist if beer and the knowledge to make it literally vanished overnight.

Illegals don’t pay taxes; cigarette smokers do.

davidk on December 15, 2012 at 5:49 PM

Also, going after illegals is pointless when they can literally turn around and walk across the border in a day with almost no opposition from American border patrol.

I’m not defending their foolishness but seriously, what’s the point?

Books have been written about the Law of Unintended Consequences — the only kind central government fosters. More books should be written.

I love/s the fact that Obama’s first tax increase was on tobacco… The working poor and their children took the biggest hit on that (broken promise #1). Taxing sins is a trick that money hungry politicians pull… In Barry’s case it was him publicly proving his adoring followers are morons.

RalphyBoy on December 15, 2012 at 6:44 PM

… and yet the flippin’ morons voted him back into office. This is just maddening.

I love/s the fact that Obama’s first tax increase was on tobacco… The working poor and their children took the biggest hit on that (broken promise #1). Taxing sins is a trick that money hungry politicians pull… In Barry’s case it was him publicly proving his adoring followers are morons.

You can always grow your own. Some do in my State.

pat on December 15, 2012 at 6:29 PM

Seems like some other folks at one time started finding ways to make their own product because of onerous taxes. Only that time it was tea. Didn’t end well for the taxing entity.

Wait. Some places are. And guess what? It doesn’t work on an island like, say, Hawaii or Puerto Rico.

Couple years back, our lovelies in the statehouse sharply raised sin taxes. Save the children, fix roads and bridges, police and fire fighters and all that. Result? Our largest shipping company is facing a huge Federal indictment for looking the other way as people stuffed the ships with “illegal” cigarettes. Discovered, of course, when someone opened the trunk of their new Nissan to a lifetime supply of smokes from China.

You can always grow your own. Some do in my State.

pat on December 15, 2012 at 6:29 PM

That’s doable, though it’s A LOT of extra work. I don’t mind constructing the cigarettes, but that’s enough for me. I’m sure that the idiots in government (all the governments) will eventually make it so that growing tobacco is the only sane way, but at least we’re not there quite yet.

Lots of people here buy from the Indian Reservations. Still pay the federal tax, but no state and local taxes.

AZfederalist on December 15, 2012 at 6:27 PM

For pre-made cigarettes, that’s the easiest, but the Indians are still far more expensive than MYO. The Indians raise their prices to stay competitive with regular prices but not too cheap. Same for the patches and electronic cigarettes. They seem to price them based more on how much smokers are being ripped off for regular cigarettes than independently. That’s okay. Business is business. But, like I said, for me it’s $1.30 a pack (though I have to make the cigarettes) and that can’t be beat anywhere.

I still applaud those buying from the Indians and at least starving some of the governments of the tax extortion.

BTW, for my tobacco, tax on a pound (which is a bit over 2 cartons worth of cigarettes) is something like $1.80 because it’s classified as “pipe tobacco”. Tax for a pound of the same tobacco cut for cigarettes (as the cut is the only difference) is upwards of $28. So I pay a total of less than $16 for a poujnd of tobacco while the tax on cigarette tobacco is more than that on its own. It’s beyond ridiculous. And then the pr!cks won’t even let us smoke anywhere, anyway. They are just nasty, nasty people.

You can always grow your own. Some do in my State.

ThePrimordialOrderedPair on December 15, 2012 at 6:22 PM

Lots of people here buy from the Indian Reservations. Still pay the federal tax, but no state and local taxes.

mixplix on December 15, 2012 at 6:17 PM

Liberals can never comprehend a simple fact. Taxes alter the way people behave.