Posted on 03/18/2011 4:52:43 AM PDT by arderkrag
CONCORD, N.H. – Bucking a national trend of raising cigarette taxes, New Hampshire, New Jersey and Rhode Island have considered reducing theirs, hoping to draw smokers from other states and increase revenue.
Supporters argue reducing the tax by a dime would make New Hampshire more competitive with Maine, Vermont and Massachusetts, while opponents say that even if the state experienced higher sales as a result it still would lose millions of dollars in revenue.
It's very unusual for states to lower the tax, University of Illinois at Chicago economics professor Frank Chaloupka says. The increase in sales isn't enough to offset the drop in state tax revenue, he says.
(Excerpt) Read more at news.yahoo.com ...
The smoking lamp is lit...
Good, and the next thing that needs to happen is to get rid of the stupid smoking bans in the outdoors, or on private property.
A tax reduction? Won’t that hurt the black market? What’s the world coming too?
What is most interesting is that someone in New England had the brilliant thought that lower taxes means more sales. (Too bad they quoted the socialist from Chicago who throws a wet blanket on the idea.)
” (Too bad they quoted the socialist from Chicago who throws a wet blanket on the idea.) “
I’d imagine that he can’t fathom lowering taxes of any kind - and the fact that it’s the tax on the evil weed just makes it a hundred times more ghastly for him...
NH my state, needs to lower the cig tax more and do the same with the tax on booze.
“...economics professor Frank Chaloupka says. The increase in sales isn’t enough to offset the drop in state tax revenue, he says.
Well with that logic why not increase the tax to $20 a pack then the state will get less sales but an increase in tax revenue.
And this guy is an “economics” professor?
Indeed. It’s long past time for the anti-tobacco propoganda to end.
Well, at least he is at University of Illinois at Chicago, but it is more of a trade school that a fancy learnin' college. His full time job is 3rd shift cashier at 7/11.
Do you suppose they have finally figured out that they have hit the point of diminishing return?
I think it is a tenet of liberal economists that the primary purpose of any economy is to provide funding for government so government can properly manage the economy. Furthermore, a properly managed economy is one where “bad” behavior is discouraged by higher taxes, no one gets “too rich” and the peasants toil happily as directed by their betters. The law of supply and demand, in the liberal view, should be applied to maximize tax revenues. In other words, tax it until hurts, then back off just a tad.
I didn’t know the difference was that great. Do you buy them a few cartons at a time? I typically come up with a list for the family and drop at least $1000 on miscellaneous items.
What a fine American! I do the same for large volume ammunition purchases that my friends in the Gay State make. I take delivery and we transfer whenever I get down there, or they get up here.
Too bad guns and automobiles can't be “transferred” like other items.
They are around $8.50 in RI.
It would definitely entice a lot of bulk buyers though. A lot of people in New York City were known to drive to Virginia and back (paying out the rear end in tolls and gas to do so) because they saved a ton of money buying smokes in bulk.
Also keep in mind that NH imposes no sales tax, and since those states are small and quick to drive through, it will encourage a lot of people who are smokers, and who need to buy expensive durable goods and bring them home, to do so in NH.
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