New York Loses $400 Million After Imposing The Nation’s Highest Cigarette Tax

The Daily Caller ^ | 12/28/2015 | Guy Bentley

[ScottWalkerForPresident2016]

New York is reaping the whirlwind of sky-high cigarette taxes with a wave of smuggling decimating the state’s revenue.

New York raised taxes on cigarettes to $4.35 in 2010 from $2.75. In total, cigarette taxes have increased by 190 percent since 2006. The sharp rise has resulted in a raft of unintended consequences which are dealing a significant blow to the state’s finances.

New York State Comptroller Thomas DiNapoli reports New York’s revenue from cigarette taxes has plunged by $400 million over the past five years.

[A CA Guy]

Well you tax the behavior more like working, smoking and spending and you get less of it.

[immadashell]

Couldn't happen to a better state - mine lol

[arthurus]

Unintended but surely expected by any economics student.

[arthurus]

Unintended but surely expected by any economics student.

[E. Pluribus Unum]

But we are told that cigarette taxes aren’t about the revenue, they are about discouraging people from smoking, so the loss in revenue is no big deal.

The important thing is we showed smokers how much we disapprove of them!

[stevem]

They just need to raise that tax to a higher level.

[Qiviut]

Taxes must not be high enough. /sarc

[E. Pluribus Unum]

[Eddie01]

Search is your friend. Scott Walker is toast.

http://www.freerepublic.com/focus/f-news/3377433/posts

[unixfox]

Denying these pukes more tax money, kinda gives me that all warm and fuzzy feeling inside.

[Old Yeller]

Dumbasses. People are always going to evade high taxes if there is another way.

[patriot08]

I’ve never smoked, but Liquor has caused more destruction, heartbreak and death than smoking ever has or ever will.
Why not put a heavy tax on liquor?

[rstark56]

I live upstate near the Indian reservations and business is booming.

[Sirius Lee]

Why not put a heavy tax on liquor?

Heck, why not prohibit it?

[SunkenCiv]

As a consequence, a lot of cig sales go to the reservations; a bunch more go to the neighboring states, where a lot of people have their primary or only residences (NJ, CT).

[kearnyirish2]

In neighboring NJ I’ve bought packs with no stamp, PA stamps, and one each of Cyrillic and Chinese characters. Our underground economy is quickly becoming the only economy left (besides the gubmint workforce).

[Pontiac]

The sharp rise has resulted in a raft of unintended consequences

Like the death of a man being being restrained by police while being arrested for selling Loosies.

True the man was resisting arrest but my point is that senseless laws breed lawlessness.

Enforcing senseless laws breeds violence and the death of those resisting those laws.

[Portcall24]

No, no. It’s not smuggling. People have stopped smoking. /s

[samtheman]

Course: Econ101
Student: Bloomberg. Grade: F
Student: DeBlazio. Grade: F