Sunday, December 13, 2015

Millions up in smoke: NY has nation's highest cigarette tax; why do so few pay it? |

     There are fewer people smoking in NY...That's good.  There are lots more smokers not buying their habit through the state's onerous tax scheme.  The numbers show it.
       I still get gasps when I tell people it's eleven bucks for a pack of Marlboro's. Most of the regular smokers who are customers puff some kind of Indian brand or something else purchased outside the state's system.
      I just got my 2016 cigarette permission slip. It's $300 a year and for me, not a profit center, but I keep it in place as a convenience.   Also cigarettes are the only product where the sales tax is added on to the wholesale price and then you deduct it on your quarterly return.
      All about the money ? Seems to be, but there is a lesson in elasticity here. You can raise taxes, but there's a point where the market seeks and finds other solutions....And none of this counts all the expense of looking for people leaving the res with too many butts.
      Millions up in smoke: NY has nation's highest cigarette tax; why do so few pay it? |


dajeep said...

Don't remember exactly, but I think it was client #9's successor, David Paterson who went for the jugular with increasing taxes.

Anonymous said...

It doesn't count the loss of all the mockers through migration either.
Do you think none of those New Yorkers smoked that you run into in the Carolina's or the Villages, or Texas? Or that they all quit smoking? Nope, many of them took their habit with them.

Anonymous said...

Wow eleven bucks for a pack of cancer sticks !!!!

Glad we both quit this disgusting habit in 1975 . We have saved well into the six figures and added to our overall financial NET WORTH while enhancing our health and quality of life .

Think about it people at todays price if you have a 2 pack a day habit ,you are spending over 8 THOUSAND DOLLARS A. YEAR on a habit that will KILL you .

THAT amount could annually go into savings and investment and provide you with a comfortable future IF YOU HAVE THE DISCIPLINE

Anonymous said...

The money goes to a good cause. Like employing otherwise unemployable people. People who can teach you how to quit smoking but apparently can't teach themselves how to eat only three meals a day of reasonable size.

Anonymous said...

You sell cigarettes ? Is that legal ?

Anonymous said...

It's the same kind of reasoning the Liar in Chief swallows with corporate taxes. They are the highest in the world. So companies stash their money overseas. Duh. Smokers do a bit of driving and save millions. Duh again.

Anonymous said...

Always amazed when in line at Kinney Drugs and someone shells out over $100 for a carton of cigs.

Anonymous said...

And the cig purchases are usually followed by a dozen or so lottery tickets.

Max Volume said...

I remember hearing that the cigarette taxes were going to be used to offset the medical expenses for smokers.

Soo...just how many smokers are getting free medical care anyway?