By Comparison, New York, Which Piles $4.35 In Taxes On Every Pack Of Smokes (with More Added In New York City), In Contrast To The $0.84 In Colorado, Sees 58 Percent Of The Cigarettes Sold In The State Smuggled From Elsewhere.

Even confining ourselves to the world of stuff you set on fire and inhale, we can see that higher taxes mean more black market cigarettes and lower taxes mean fewer. 13.5 percent of cigarettes sold in Colorado are sourced on the black market, according to 2013 figures from the Mackinac Center for Public Policy and the Tax Foundation. By comparison, New York, which piles $4.35 in taxes on every pack of smokes (with more added in New York City), in contrast to the $0.84 in Colorado, sees 58 percent of the cigarettes sold in the state smuggled from elsewhere. “One consequence of high state cigarette tax rates has been increased smuggling,” the groups point out. The traffic in booze is another legal market habitually afflicted by politicians with high taxes and burdensome red tape . “Conservatively, illegal importation of alcohol into Michigan strips the State of at least $14 million each year,” the Michigan Liquor Control Commission estimated in 2007, in an extended complaint about consumers dodging high taxes. Lower-tax neighboring states were named by officials as sources of adult beverages smuggled to avoid Michigan’s excessive government take. Illinois officials also complain about state residents evading their tax regime with black market purchases. Tellingly, they’ve managed to make “a six-bottle case of vodka that costs $167 in Indiana costs $226 in Illinois and is $18 more than that in Cook County,” according to one press report , and they play at being shocked that they have fueled a thriving illicit trade.

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