Some consumers will go into other states to buy cigarettes, opening a black market in cigarette smuggling that lowers state tobacco revenue as well. Out of all the cigarettes smoked in the state of New York 20.9 percent are smuggled in from other states. Cigarette smugglers, who are more serious than the casual consumer who crosses the border and picks up a pack, can make tens of thousands off of a single vanload of cigarettes. Not only is this a blow to state revenue, but it is a boost to crime as profits finance theft of untaxed cigarettes, thefts of state tax stamps, counterfeiting of name-brand cigarettes, and violence against residents and police officers.

 

Rather than continue to burden the taxpayer, cigarette consumers, and businesses that sell cigarettes – and rather than aid those who smuggle and are involved in the black market –  Governor Paterson and the New York legislature should actually lower the tax. A lower tax will allow New York stores to compete with others in low-tax states and reduce smuggling to still generate some revenue that New York seeks.

Suggest looking up another unintended consequence. A study I heard about talked about how taxes have basically done all they can to dissuade people from smoking (the nominal reason for the tax). The wealthy have stopped smoking while the poor continue to spend more and more money on expensive cigarettes. Find the study Mr. Clemmer.
>> James Bonney Wednesday, January 13, 2010 9:44 AM Report Comment

actually there is this study which suggests that tax increases don't do squat when it comes to stopping smoking. http://www.acda-aqda.ca/HEC_MTL_TAX_STUDY_-_EN_final_vers.pdf
>> Algernon Sydney Thursday, January 14, 2010 11:21 AM Report Comment

Actually, if you go back to '70's when NY did the same thing, those who had cars and who wanted to make a quick buck, went to North/South Carolina/Virginia and bought up all the cigs that money could buy. Sold on the streets of NYC brought in a nice profit. Studies and other intellectual parodies don't mean squat. A lot of us made big bucks; the state of NY and the city lost millions of dollars in revenue. Stop reading studies by the armchair bound metrosexuals and get out on the street to find out what's going on.
>> El Gordo Sunday, January 17, 2010 12:32 AM Report Comment

Actually, if you go back to '70's when NY did the same thing, those who had cars and who wanted to make a quick buck, went to North/South Carolina/Virginia and bought up all the cigs that money could buy. Sold on the streets of NYC brought in a nice profit. Studies and other intellectual parodies don't mean squat. A lot of us made big bucks; the state of NY and the city lost millions of dollars in revenue. Stop reading studies by the armchair bound metrosexuals and get out on the street to find out what's going on.
>> El Gordo Sunday, January 17, 2010 12:35 AM Report Comment