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60.9% of all smokes in NY go untaxed
HotAir ^ | 01-19-2013 | Jazz Shaw

Posted on 01/21/2013 7:41:12 AM PST by algernon_garnock

With all the nonsense that’s been going on in the Empire State of late – especially the Governor’s successful gun rantings - I’d begun to worry that New York was doomed for mediocrity. But for better or worse, you just can’t keep the government of this state down. If we can’t lead in freedom, prosperity or employment, we can at least be the capital of piracy. (Cigarette smuggling piracy, that is.)

The Midland, Mich.-based Mackinac Center has released smuggling reports in 2006 and 2009, in addition to its most recent report covering 2011. In 2006, the Mackinac Center estimated that New York had the fifth highest smuggling rate in the country as 35.81%. In 2008, New York’s state excise tax on cigarettes nearly doubled, going from $1.50 to $2.75 per pack. In the Mackinac Center’s 2009 report, New York rose to number two on the list, with a smuggling rate of 47.35%. State excise taxes rose again in 2010, going from $2.75 to the state’s current $4.35. Not surprisingly, the 190% increase in state excise taxes from 2006 through 2011 catapulted New York to its title as the most smuggled state.

But this still leaves a pressing question. Where are all of these smokes coming from? It’s not as if Al Gore’s global warming has suddenly turned New York into a great place to grow tobacco. According to another analysis, the largest (illegal) exporter of cigarettes to the Big Apple was New Hampshire. How could that happen?

New Hampshire had the highest share of its cigarettes — 26.8 percent — smuggled out of the state. The state cut its tax rate in 2011 by 10 cents to $1.68, still slightly higher than the national average. But it is surrounded by states with much higher tax rates. In Massachusetts, for example, the tax was $2.51 per pack.

If it was easier to get large quantities of cigarettes from a place like Tennessee to New York, that’s where they would be coming from. (You can find Marlboros there for under five bucks a pack today, all taxes included.) But New Hampshire is closer, so their retailers reap the benefits. Meanwhile, Governor Cuomo’s state continues to bleed out cash, thinking that just one more tax hike will finally make the difference and put us back in the black.

Let us know how that works out, Andy.


TOPICS: Culture/Society; US: New York
KEYWORDS: cigarettes; newyork; taxes; tobacco

1 posted on 01/21/2013 7:41:22 AM PST by algernon_garnock
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To: algernon_garnock

Why doesn’t NYC just tax the hell out of SNAP, WICs, EBT, TANF, Section 8 and EITC? Lotsa money there!


2 posted on 01/21/2013 7:48:02 AM PST by Gaffer
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To: algernon_garnock

And based on that, with a sales organization on the street the unregistered gun sales in NY will make the Mafia one heck of a tidy profit. Perhaps Cuomo is making financial decisions not political ones after all.


3 posted on 01/21/2013 7:49:00 AM PST by Steamburg (The contents of your wallet is the only language Politicians understand.)
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To: algernon_garnock

When I lived in NC, I used to drive by JR discount center in Selma. They use to sell cigarettes wholesale. (Looks like they only do cigars now) The parking lot was usually overflowing with car from NY and NJ.


4 posted on 01/21/2013 7:57:45 AM PST by PJammers (I can't help it... It's my idiom!)
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To: algernon_garnock

In the 8 miles from my Virginia home to the VA/Maryland state line there are no less that 10 “discount” cigarette stores (plus convenience stores that also advertise cheap prices) and on any given day the out of state plates in those lots out number the VA plates. I also live a direct 6 hours south of NYC.


5 posted on 01/21/2013 8:02:03 AM PST by Gabz (Democrats for Voldemort.)
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To: algernon_garnock

No problem uncle Vennie works on the docks in Chicago only $10.00 a carton.


6 posted on 01/21/2013 8:06:51 AM PST by Vaduz
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To: algernon_garnock

Gee, in a state with Mafia AND Indians?? Whoda thunkit??


7 posted on 01/21/2013 8:16:43 AM PST by Buckeye McFrog
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To: algernon_garnock

Only fools and the middle class pay taxes.


8 posted on 01/21/2013 8:23:43 AM PST by gotribe (obama = the Great Divider)
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To: algernon_garnock

The government makes more “profit” on cigarettes than the cigarette companies.

Phil Mickelson pays almost 65% of his entire income in taxes.


9 posted on 01/21/2013 8:26:20 AM PST by Tea Party Terrorist (Those who work for a living are now outnumbered by those who vote for a living.)
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To: algernon_garnock

A major hub is Akwesasne, where cigarettes are produced tax-free. They are readily available in Toronto for less than $2 a pack. Excise taxes here are $4/pack.


10 posted on 01/21/2013 8:38:32 AM PST by Squawk 8888 (True North- Strong Leader, Strong Dollar, Strong and Free!)
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To: algernon_garnock

I had a lady from NY here looking at houses a few years ago(I’m a Realtor)and when she found out cigs were $4.00 a pack she asked me to pull over at a store. She bought 10 cartons of Salems. She said they were $10.00 in NY and that was 5 years ago.


11 posted on 01/21/2013 8:41:33 AM PST by albie
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To: algernon_garnock

12 posted on 01/21/2013 8:56:11 AM PST by MrBambaLaMamba (This Message Contains Privileged Attorney-Client Communications)
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To: algernon_garnock

The locals here buy cigs and gas at Indian stores. Now & then they get raided by NYS, but they’re back in business quickly. Puts a differentight on the so-called smuggling statistics.


13 posted on 01/21/2013 9:03:09 AM PST by ntnychik
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To: algernon_garnock
I am sure that a majority (a vast majority) are sold with a wink wink from the politicians and tax officials and police. In exchange for that wink wink, they are paid substantial sums of money by everyone from buyers to retailers to wholesalers to smugglers to tribal members and on and on.
This is the reason many if not all run for office. In America today political bribes are as much of a way of life as Mexico.

Always Remember; “Anyone who gets rich in public service is a crook” Harry S. Truman

14 posted on 01/21/2013 9:08:56 AM PST by Tupelo (Hunkered down & loading up)
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To: algernon_garnock; All

This Indian site is still mailing out cigarettes.

http://www.senecacigarettes.com/tobacco/

How can they get away with this?

Is it safe to order from them?

(Grandfather needs place to get cheaper cigarettes)


15 posted on 01/21/2013 9:17:56 AM PST by patriot08 (NATIVE TEXAN (girl type))
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To: patriot08
This Indian site is still mailing out cigarettes.
http://www.senecacigarettes.com/tobacco/
How can they get away with this?


The Junior Senator from Massachusetts is now looking out for them...


16 posted on 01/21/2013 9:21:19 AM PST by Buckeye McFrog
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To: algernon_garnock

While I do not doubt the basic thrust of this story, and I applaud anyone that can screw any level of government out of “their” tax money, I have one question:

HOW CAN THEY POSSIBLY KNOW THIS?

How can anyone know how many people ARE NOT paying taxes on cigarettes or anything else? How can they know, to one hundredth of a percent, how many people are doing something illegal? If it were possible to know this information, the government would be arresting and jailing those involved. And there would not BE “70% of taxes not paid.”

Since it is not possible to actually know this information, this whole story is a LIE. It is PROPAGANDA, disseminated for the sole purpose of justifying more police power, more police snooping, more government. It is to convince the low-information voters that the government is “looking out for” them. That the government needs more power, more authority, more taxes, to chase down these rotten smugglers, and make them pay “their fair share.”

Crap!

rant off


17 posted on 01/21/2013 9:28:12 AM PST by G-Bear (Always leave your clothes and weapons where you can find them in the dark.)
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To: algernon_garnock

I am sure organized crime has a thriving black market in bootleg cigarettes. Too bad politicians are ignorant of history. When the great social experiment of Prohibition was enacted to save people from themselves organized crime thrived providing people the beer and alcohol they wanted.


18 posted on 01/21/2013 9:40:01 AM PST by The Great RJ
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To: G-Bear

It’s actually not that tough, cigarette packs have tax stamps on them. Have a study raid public trash cans in an area, see what percentage of the packs have NY stamps in each subsection, mean average. Also the IRS has done a lot of studies on the effect of tax rates on the amount of effort and percentage of people that will try to avoid that tax, so there’s baseline data they can use right there.

As for arresting and jailing, how? This is NY, it’s in a densely part of the country with a lot of travel between states. Live in New Hampshire and work in New York, talk to your smoking co-workers and bring a couple cartons in your brief case periodically. Or people who live there can just save their buying until the weekend when they’re going to be heading to New Jersey. They can bust mobsters smuggling truckloads in, but the individuals bringing in a couple of cartons are nearly impossible to catch... until you see the empties in a sidewalk trashcan.


19 posted on 01/21/2013 9:42:01 AM PST by discostu (I recommend a fifth of Jack and a bottle of Prozac)
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To: patriot08

I believe they can do this since they are exempt with their resevation status. Most of the Indian sites are legit and safe to deal with. They can sell for less but I believe most states now require them to add your state’s (Texas?) sales tax in with your purchase. You can also add about $20 for shipping too. They only ship UPS and require an adult signature.

You may want to look at Lil Brown as well to compare prices: www.lilbrown.com

It’s also an Indian reservation site, and they do tack on state sales taxes, but the half dozen times I’ve ordered cigars from them over the last 5 years they’ve been very helpful, and their prices are less from what I’ve found elswhere.


20 posted on 01/21/2013 10:15:12 AM PST by roostercashews (Having a gun doesn't make you safer, but knowing how to use one does.)
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To: algernon_garnock

Indian Reservations within the State.


21 posted on 01/21/2013 10:17:34 AM PST by Paladin2
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To: algernon_garnock

Good. May it continue in spades.

Regards,


22 posted on 01/21/2013 10:20:03 AM PST by VermiciousKnid (Sic narro nos totus!)
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To: roostercashews

Thanks


23 posted on 01/21/2013 11:25:14 AM PST by patriot08 (NATIVE TEXAN (girl type))
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To: algernon_garnock
Don't know much about the smuggling ... though it only stands to reason. I buy mine from the Senecas. One reservation to the north about 15 miles away and another where I occasionally work in Steamburg about 25 miles the other direction.

Smokes are $100/carton in the local grocery story (yes, you read that right) and $30 on the "res". New York has been funding its government for years now by counting the revenue it "should" get from tobacco.

And, let me tell you, they're really pi**ed they're not getting it.

24 posted on 01/21/2013 3:48:10 PM PST by BfloGuy (Money, like chocolate on a hot oven, was melting in the pockets of the people.)
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