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Old February 15th, 2015, 02:09 PM   #1
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The highest Cigarette Tax

Illinois Now High in Cigarette Taxes — and Smuggling
Illinois raised its tax on cigarettes by $1 to $1.98 a pack in the middle of 2012, and over the next year cigarette smuggling soared from 1.1 percent of all smokes consumed to 20.9 percent.
Cook County, home of Chicago, has also boosted its cigarette tax from $2 to $3 a pack, and the Chicago municipal rate rose from $0.68 to $1.18, meaning that since January 2014 taxes on cigarettes in Chicago totaled $6.16 a pack, the highest combined rate in the country.
The Tax Foundation each year issues a report on cigarette smuggling based on data from the Mackinac Center for Public Policy, a Michigan think tank. The latest report uses data from 2013, and shows that smuggling accounts for at least 20 percent of consumption in 15 states.
The highest state tax rate is in New York, $4.35 a pack, up 190 percent since 2006, and most cigarettes in the state, 58 percent, are smuggled, up from 35.8 percent in 2006. New York City imposes an additional $1.50 tax, bringing the total tax to $5.85 a pack.
"One consequence of high state cigarette tax rates has been increased smuggling as criminals procure discounted packs from low-tax states to sell in high-tax states," the Tax Foundation observed.
The second-highest percentage of smuggled cigarettes is in Arizona, as it was last year — 49.3 percent, down slightly from 51.5 percent in 2012.
Washington State, where the tax is $3.025, has moved up to third with a 46.4 percent smuggling rate, surpassing New Mexico at 46.1 percent. Next is Rhode Island, where the tax is $3.50 and the smuggling rate is 32 percent.
Several states have a negative smuggling rate, meaning a percentage of cigarettes sold there are sent to other states.
The highest outbound smuggling rate is in New Hampshire, -28.6 percent. The state has a $1.68 per pack tax, but neighboring Massachusetts has a $2.51 tax and in Vermont it's $2.63.
The lowest tax is in Missouri, $0.17, where the smuggling rate is -13.7 percent, and in Virginia, which has a $0.30 tax and the smuggling rate is -22.6 percent.
There is also a federal excise tax on cigarettes, while some municipalities impose a tax and most states charge a sales tax on top of the excise tax.
The report does not include smuggling data from Alaska, Hawaii, North Carolina, or the District of Columbia.
The Bureau of Alcohol, Tobacco, Firearms and Explosives estimates that some $10 billion in state and federal tax revenue is lost each year due to smuggling, showing that, as the Tax Foundation points out, "public policies often have unintended consequences that outweigh their benefits."
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Old February 15th, 2015, 02:54 PM   #2
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Originally Posted by roastpork View Post
Illinois Now High in Cigarette Taxes — and Smuggling
Illinois raised its tax on cigarettes by $1 to $1.98 a pack in the middle of 2012, and over the next year cigarette smuggling soared from 1.1 percent of all smokes consumed to 20.9 percent.
Cook County, home of Chicago, has also boosted its cigarette tax from $2 to $3 a pack, and the Chicago municipal rate rose from $0.68 to $1.18, meaning that since January 2014 taxes on cigarettes in Chicago totaled $6.16 a pack, the highest combined rate in the country.
The Tax Foundation each year issues a report on cigarette smuggling based on data from the Mackinac Center for Public Policy, a Michigan think tank. The latest report uses data from 2013, and shows that smuggling accounts for at least 20 percent of consumption in 15 states.
The highest state tax rate is in New York, $4.35 a pack, up 190 percent since 2006, and most cigarettes in the state, 58 percent, are smuggled, up from 35.8 percent in 2006. New York City imposes an additional $1.50 tax, bringing the total tax to $5.85 a pack.
"One consequence of high state cigarette tax rates has been increased smuggling as criminals procure discounted packs from low-tax states to sell in high-tax states," the Tax Foundation observed.
The second-highest percentage of smuggled cigarettes is in Arizona, as it was last year — 49.3 percent, down slightly from 51.5 percent in 2012.
Washington State, where the tax is $3.025, has moved up to third with a 46.4 percent smuggling rate, surpassing New Mexico at 46.1 percent. Next is Rhode Island, where the tax is $3.50 and the smuggling rate is 32 percent.
Several states have a negative smuggling rate, meaning a percentage of cigarettes sold there are sent to other states.
The highest outbound smuggling rate is in New Hampshire, -28.6 percent. The state has a $1.68 per pack tax, but neighboring Massachusetts has a $2.51 tax and in Vermont it's $2.63.
The lowest tax is in Missouri, $0.17, where the smuggling rate is -13.7 percent, and in Virginia, which has a $0.30 tax and the smuggling rate is -22.6 percent.
There is also a federal excise tax on cigarettes, while some municipalities impose a tax and most states charge a sales tax on top of the excise tax.
The report does not include smuggling data from Alaska, Hawaii, North Carolina, or the District of Columbia.
The Bureau of Alcohol, Tobacco, Firearms and Explosives estimates that some $10 billion in state and federal tax revenue is lost each year due to smuggling, showing that, as the Tax Foundation points out, "public policies often have unintended consequences that outweigh their benefits."
Note: Newsmax magazine is now available on the iPad. Find us in the App Store.
So stop smoking. *shrug*
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Old February 15th, 2015, 02:57 PM   #3
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The higher the tax rates, the larger the black market, New York shows that. Eric Garner was selling singles, store owners complained, tax revenue was being lost, they sent a squad after him.


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Old February 15th, 2015, 03:33 PM   #4
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Republican Governors across the country have been pushing such tax increases. They are lowering income taxes on the wealthy and increasing sales taxes. The middle and lower classes pay a higher % of their incomes on sales taxes than the wealthy do. Understand the redistribution scam the Republicans are running now ?

Quote:
Gov. Sam Brownback declared Thursday in his State of the State address that Kansas would continue its “march to zero” on income taxes.

But the budget and tax plans he unveiled Friday showed it would not be marching so quickly.

He proposed a slowdown in income tax cuts — plus massive tax increases on tobacco and liquor — as part of his plans to fix a budget shortfall projected at $648 million for the next fiscal year.

Read more here: Gov. Sam Brownback seeks to raise Kansas tobacco and liquor taxes, scale back deductions | The Kansas City Star The Kansas City Star
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Old February 15th, 2015, 04:06 PM   #5
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in march I will have been an ex-smoker for a whole year!! of course I vape all day but it's much much safer and cheaper and it smells and tastes yummy.

my husband was getting his oil changed yesterday and some old lady came in that was fairly drunk. she was telling people that vaping had formaldehyde in it( not true) I wonder if she's worried about what all the booze is doing to her liver?? I wish I would have been there, I would have told her she was a friggin idiot.
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Old February 15th, 2015, 09:45 PM   #6
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The bad part is Illinois will put the state goons out in force and have roadblocks coming form Kentucky and Missouri and will use the "bootlegging" excuse to search vehicles. Just make sure you have ze papers handy comrades when coming into the socialist republic of Illinois
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Old February 15th, 2015, 10:54 PM   #7
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I am a non-smoker...so haven't a clue as to what cigarettes cost. Here, I see at a gas station that they hover around $20 (US after conversion). What are they in the USA???
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Old February 16th, 2015, 02:57 AM   #8
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Originally Posted by Camelot View Post
Republican Governors across the country have been pushing such tax increases. They are lowering income taxes on the wealthy and increasing sales taxes. The middle and lower classes pay a higher % of their incomes on sales taxes than the wealthy do. Understand the redistribution scam the Republicans are running now ?
Cigarette and other sin taxes are very regressive, but Democrats don't care.


ANALYSIS: Obama's new tobacco tax burdens poor, breaks promise
Thursday, April 2, 2009 | 12:01 a.m. CDT
BY CALVIN WOODWARD/The Associated Press ...



Obama calls for cigarette tax hike of 94 cents a pack - Apr. 10, 2013
April 10, 2013
Obama calls for cigarette tax hike of 94 cents a pack
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