Sunday, 23 March 2014

More Than Half Of Cigarettes Sold In New York Are Black Market

Just the other day, we learned that organised criminals are latching onto the sky high price of tobacco in Australia and making a mint. It's a simple basic economic fact that the more a state raises prices, the more human beings will look kindly at cheaper sources from whatever source - of course, this is always denied by professional tobacco prohibitionists and denounced as a tobacco industry fabrication.

Anyhow, following on from that, it seems that the same 'fantasy' scenario is happening in New York too.
The boom in smuggling to avoid cigarette taxes
More than half of the cigarettes sold in New York State are smuggled in from other places to avoid the Empire State's taxes on smokes, which have soared nearly 200 percent since 2006, according to a report issued by the conservative Tax Foundation. 
New York is the highest net importer of smuggled cigarettes - illegal smokes account for 56.9 percent of the state's total market. New York's cigarettes tax is $4.35 per pack, the country's highest.
So, the tax on cigarettes in New York is the highest in the country, and the level of smuggling in New York is also the largest in the country. You know, I think the two might be linked? Unless, of course, it is just pure coincidence (or a conspiracy) that, out of 50 states, New York handsomely leads in both criteria.

Considering the incredibly weak associations and vague correlation considered by tobacco control to be "compelling" or "overwhelming" evidence of causation, it's hilarious that they still try to lie claim that - even faced with real life evidence like this - basic laws of economics are magically incorrect when it comes to tobacco.

This isn't rocket science. It is simply people doing what the laws of economics have always consistently predicted people will do.

With Osborne announcing a rise in tobacco taxes by 2% above inflation for every year till the end of the decade in his budget this week, we can expect the same proportional increasing rise in the level of tobacco sourced from other countries in the EU. The booze cruise of the 90s, of which I'm sure we all have fond memories, will hopefully become increasingly more financially attractive again - most especially if there is the added bonus of being able to buy properly branded packs instead of plain packs which our daft one party state looks set to approve - except that this time it'll be the 'fag cruise' with a side benefit of stocking up with cases of cheap French wine while we're there.

With any luck, one day we may be able to proudly boast - just like New Yorkers - that over 50% of UK consumed tobacco has not contributed so much as a brass farthing to our hideous government. Bring it on!

H/T Norcal David G