Wednesday, June 30, 2010

Ways to Stop Smoking

The Legislature has raised the cigarette tax once again. This is good news to cigarette bootleggers and stores at assorted Indian reservations. These guys will see record sales and stores that do pay taxes will have lower sales. The bad news for the rest of us is that, one year from now, the tax receipts from cigarettes will have gone down. A few people might stop smoking but alternative – cheaper – sources are available to them so a big drop is unlikely. And lower sales at stores will not help the small business guy. This type of economic lunacy is what is expected. State and Federal legislatures just don’t get it – raising taxes does not mean there is more tax income. People will react – everyone has a different breaking point. They will buy cigarettes where it is cheaper, move homes and businesses out of highly taxed areas, and take whatever actions they can to keep money in their pockets. One guy wrote to the paper that liquer taxes should be raised too. Aside from the economic idiocy involved, apparently someone is not aware of how well Prohibition worked. PS: I don’t own a store and don’t smoke.

No comments:

Post a Comment