New York Cigarette Tax Revenue and Health Impact: Over Half of NY State Cigarettes Illegally Imported
Do you like to take a puff of that good 'old Marlboro or Camel cigarette? Perhaps you prefer the classic cool of Newport's instead. Now, we're not trying to glamorizing smoking here at the Latin Post, but whatever brand allegiance you may cling to, you should know where your favorite smokes are coming from. It's very possible that a ton of your favorite slender nicotine death sticks are being illegally imported into your state. The state at the top of the cigarette smuggling black market? That's none other than the Empire State.
Courtesy of the highest state cigarette tax in the nation, New Yorkers have to pay as much as fourteen bucks per pack! If you break that down, that's roughly a dollar per cig. It's nuts. And it's inexcusable. Because, as bad as cigarettes are for America's health, the economic impact that a pricey pack of smokes can have on one's wallet is not to be taken lightly either. After all, not everyone quits.
So how did this illegal import statistic come to light? Thanks to an illuminating new study by the conservative leaning Tax Foundation, of course. The tax tracking group found out that a whooping 56.9 percent of all cigarettes being sold in NYS were illegal.
"Public policies often have unintended consequences that outweigh their benefits. 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 report reads. "Growing cigarette tax differentials have made cigarette smuggling both a national problem and a lucrative criminal enterprise."
Other states that have high levels of smuggling include Arizona, New Mexico and Washington. All these states, however, are above or just below the 50 percent threshold.
But why is this happening? Well, if you've never been to New York State, let me paint a horrifying picture for you regarding cigarette pricing. Each pack of cigarettes bought in the state has the manufacturers suggested price plus an additional $4.35 tax. The problem worsens (or if your a health conscious person improves) in New York City where a $5.85 tax is levied.
It's of no surprise that Big Tobacco hates that its products are taxed so highly.
Thomas Carr, director of national policy for the American Lung Association, spoke with CBS about the prevalence of cigarette smuggling. Carr contradicts what the Tax Foundation's data shows. He says that the smuggling issue "is a lot smaller than the study lets on." And Carr went on to reaffirm that "Tobacco companies are generally against higher tobacco taxes."
What are your experiences with buying cigarettes? Do you feel the pain of having to shell out massive amounts of dough just because a restrictive tax exists in your state? Let us know in the comments section below.
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