High Taxes Promote Black Market Cigarettes in Bordering State

Michigan Capitol Confidential ^ | 6/14/2015 | Anne Schieber

[MichCapCon]

Cigarettes are legal in the U.S., but a black market is alive and thriving, generating crime and imposing costs on residents and businesses.

To witness this in action one need only cross the state's southern border and see the busy parking lots of Indiana tobacco shops filled with cars from Michigan, whose occupants are stocking up on smokes that cost a dollar less per pack. One South Bend store even offers drive-thru service. “It doesn’t matter to me, just don’t get caught,” said the clerk when asked if she could sell several cartons to a Michigan resident.

“There was always a way to get cigarettes cheaper," says a buyer named Mike, a former smoker who asked that his last name not be used. "Lots of different avenues. I had family in the trucking industry who could stop in a low-tax state and pick up a few cartons."

It is illegal to transport cigarettes from another state into Michigan but cross-border trafficking, or “cigarette smuggling” does happen — not just here but across the nation, as taxes on cigarettes can vary as much as $6 per pack from one jurisdiction to another.

[17th Miss Regt]

Cigarettes are legal in the U.S., but a black market is alive and thriving, generating crime and imposing costs on residents and businesses.

Surprise! Surprise! Surprise!

[tflabo]

Good... Eff the state with its tyrannical overtaxation extortions. Starve the beast.

[Rummyfan]

[Rummyfan]

[CGASMIA68]

How about from the Indians in Fl and then trekked to places like DeBlasios Hell Hole..Pretty hefty mark up and worth the risk as the $$ are as good as drugs and the penalty less

[BuffaloJack]

Tobacco is big revenue for states. They don’t mind people killing themselves to donate tax money for their nicotine fix, but don’t mess with this revenue stream but doing black market sales to do them out of their cut.

[concerned about politics]

It was bound to happen. Without the boogie man tax, Washington would go belly up. It's the only reason the politicians want pot legalized (It has nothing to do with "freedom". In fact, it's just the opposite. It has to do with hooking and then taxing the slaves even more).

[BuffaloJack]

Hey, tobacco companies, try this. Make grown tobacco hyponically. Without the soil containing trace amounts thorium and uranium for the tobacco to concentrate, you could provide a product that is still addicting, but significantly lowers the rate of cancer. After all, it’s been known since the 50s that the primary agent for causing cancer in tobacco is the radioisotopes (thorium, uranium) that are concentrated and collected by the tobacco plane.

[VRWCmember]

It is illegal to transport cigarettes from another state into Michigan but cross-border trafficking, or “cigarette smuggling” does happen

How can such a law possibly be valid? The Constitution prohibits imposts and duties on items imported or exported between States.

[unread]

"Good... Eff the state with its tyrannical overtaxation extortions. Starve the beast."

In NY. state tax is $4.35 a pack...in Mo. it's 17 cents a pack..... Lots of money to be made with that kind of differential..!

[Foundahardheadedwoman]

I am from Ky, had an uncle who lived and worked in Mich. When he visited Ky he would load his trunk with smokes and haul them back. It paid for his trip. Too late Feds, he passed a few years ago. Have an aunt and uncle who live in Del. and they could save a ton but they are a little to spineless to try.
Had an employee who hauled whiskey and beer and he managed to send nine kids thru college on the profits. One is now the president of a local college. Our employee is gone too. He was a good man.

[babygene]

“it’s been known since the 50s that the primary agent for causing cancer in tobacco is the radioisotopes (thorium, uranium) that are concentrated and collected by the tobacco”

Thanks for the post. I’ve always wondered about that.

I’ve always found it strange that although even our collective “mothers” knew cigarettes were bad for you, not a lot has been done to identify exactly what in the smoke caused cancer... It seems that it would vary by brand and date code since the problem clearly isn’t the nicotine. (nicotine gum doesn’t display the warning nor does the patches)

[hoosierham]

What is this Constitution you mention?

Was it the paper that said “the right to bear arms shall not be infringed”?

or something about searches,seizures, and warrants?

Must have been some ancient thing.

I believe referring to that aper marks one as a domestic terrorist these days. (Thanks, G. Bush).

[hoosierham]

aper =paper

darn keyboard

[Bluewater2015]

Having a crazy quilt of high and low cigarette taxes across the Fruited Plain guaranteed to encourage smuggling across state lines. The answer, of course (and yes, cigarettes are proven killers, the only legal product that will harm you

if used as directed) is a high, nationwide tax, divided amongst the states. Fat chance this would ever happen though. Tobacco state senators would kill this dead.

[Lurker]

No kidding.

L

[Lurker]

How cute. You think the Constitution is still operative.

L

[OldMissileer]

...busy parking lots of Indiana tobacco shops filled with cars from Michigan, whose occupants are stocking up on smokes that cost a dollar less per pack...

Only a dollar per pack?

Come down here to Virginia and watch all the people from New York, New Jersey, and other Northeastern states buy the maximum limit of five cartons, then drive down I-95 and do it again at another store.

The cost of a pack of Newports is around $5 here but they cost about $10 to $15 per pack up there.

[ansel12]

If tobacco were legalized, then the state could tax it, and it would end crime, and we could all live in harmony with nature, or something.