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…

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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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New Yorkers Fight Back Against Smoking Ban

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We Americans are a rebellious lot, and we definitely do not like being told that we cannot do something.  This fine tradition rears it’s head whenever the nanny state passes a new and more odious edict.  New Yorkers are no different, and seem to be waging a war against the smoking ban in that city.  Reason TV, via Big Government highlights this in a recent video…

As you can see, particularly in the case of the retired cop, New Yorkers are not taking kindly to this, and nanny staters like Bloomberg should be aware of that.  Of course, the mafia already, and I have to wonder if their tax revenue has either dropped, or failed to meet targets dues to the government creating a situation too tempting for organized crime to not exploit.

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Graph: Results of Tax Cuts on Revenue to the Federal Government

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Democrats, led by President Obama, frequently advance the argument that the deficits that the federal government has been running since 2001 (~$500 billion under Bush’s 8 years, ~$1500 billion during Obama’s 3 years) are the result of the Bush Tax Cuts (which Obama and the Democrats continued and extended), thus it is the Republicans and George W Bush’s fault for the current nation-destroying federal debt. Let’s look at the data:

Drawing on data provided by the White House’s Government Printing Office, we can see here a history of the revenue or money collected by the national government since 1980. I went ahead and drew some lines in to indicate 4 of the arguably largest tax cuts that occurred during that time.

As we can see, the revenue that the federal government collected immediately grew by substantial amounts after the tax cuts in 1981, 1986, and 1997, giving us three solid data points from which to draw a conclusion that tax cuts, especially on the wealthy and on business, lead to the federal government getting more revenue to defend our borders and provide services for the truly needy. The Bush Tax cuts of 2001 though did not lead to immediate and substantial growth of revenue- but after another tax law in 2003 was passed which accelerated the tax cuts and added more of them, the result was an explosion of revenue for the government, jumping from $2 trillion to $2.6 trillion in only 7 years.

All other things being equal and the logic being consistent to what was seen in earlier tax cuts, the implementation of the Bush Tax cuts led to an additional $600 billion a year in revenue for our federal government, leading to better protection of life, liberty, and property for the citizens of the United States of America.

Who doesn’t like that?

UPDATE: To take this a little further and show you how crazy I am, I suggest that there is a way to cure our current deficits, and the cure is more cowbell. If previous tax cuts led to increased federal revenue, then more tax cuts could also lead to more federal revenue- by my estimate, if taxes were cut by the same level as Bush+Clinton+Reagan, then we’d be able to raise enough revenue to balance the budget.

So there you go- Democrats and liberals and Obama, Pelosi, Reid, Stabenow, and Peters are all backwards again- rather than raising taxes to balance the budget, they should be massively cutting taxes. The prosecution rests.

Original Post:  A Conservative Teacher

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