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Cigarette Taxes Create More Failure? NY and Chicago Suffer From Liberalism

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It’s common sense, really.  If you tax something highly, human nature dictates that people will go out of their way to avoid the tax.  Liberals, however, seems to have missed that, because they continue to tax and tax.  Then, they are completely shocked and surprised when people do what they have always done.  Hot Air has the latest…

First, my own home stomping grounds of New York, which has been seeking a way to stave off total fiscal collapse by jacking up one of the highest tobacco tax rates in the nation. How’s that working out for ya?

ALBANY – Chronic cigarette-tax evasion continues to cost New York State at least $1.7 billion a year in tax revenue and 6,700 jobs, according to a new report from the New York Association of Convenience Stores (NYACS).

Commissioned by NYACS, the economic study by John Dunham & Associates determined that in 2011, one of every two packs of cigarettes consumed in New York State escapes collection of New York State taxes. “This is further proof that New York, which has the highest cigarette excise tax in the nation, continues to suffer the corrosive economic and fiscal effects of the worst cigarette tax evasion in the nation,” said NYACS President James Calvin in a press release.

Their study finds that nearly half of the packs of smokes purchased in New York were “from other states, Indian reservations, duty-free shops, and military bases.” And that doesn’t take into account the number of smokers who are choosing to do their shopping with black market bootleggers who are increasingly prevalent in sections of the state which are further from the border.

Lol, this has been reported for years.  I think I did my first post on cigarette taxes in NY in 2009.  But, in response to their failure, the liberals keep going and going -reality be damned.

Apparently, Chicago is also seeing the problem…

But that’s just New York. We’re kind of weird out here anyway, right? So maybe this case is just an outlier. I’m sure things are working out much better in Chicago, where Illinois is quickly moving to catch New York in the smoke tax category. The money surely must be rolling in by now.

CHICAGO (CBS) – 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.

“Roughly a quarter of them result in confiscations,” Cook County Board President Toni Preckwinkle said.

“In the last fiscal year, it was a loss of $6 million,” she added. “$6 million would make a great deal of difference to our healthcare system, or to our criminal justice system.”

Chicago has at least found a way to make up some of the loss, giving credit where credit is due. To date they have managed to issue more than $1.3M in fines, largely against small retail outlets who sell cigarettes. So they’ve got that going for them I guess. And hey… they’re creating jobs, too.

Lol, when will they ever learn?  If you want something to go away, or go underground, tax it.  In pretty much every state where a cigarette tax has been pushed to the limit, revenues have not met projections, and in some cases, they have dropped in total.

The solution is really simple.  If the government reduces the tax, people will no longer have the incentive to avoid it, and revenues will increase.  But, the liberals will never see that.  It’s reality, and that really doesn’t “compute” to the liberal mind, so the taxes will continue to grow.  More people will be made criminals, and will not only revenues decrease, but the liberals then expend a freakton of resources on enforcing the taxes, to the detriment of other activities in the public interest,

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