From: UticaOD.com
While having the highest cigarette taxes in the country might be curbing the smoking habit in New York, it also has led to a huge spike in cigarette smuggling that is decimating some independent tobacco shops.
While having the highest cigarette taxes in the country might be curbing the smoking habit in New York, it also has led to a huge spike in cigarette smuggling that is decimating some independent tobacco shops.
A new report by the Tax Foundation found that 57 percent of cigarettes in the state are imported illegally from other states, the highest such rate in the nation.
Tax Foundation Economist Scott Drenkard attributes the epidemic to New York charging $4.35 a pack in taxes, and New York City adding another $1.50 on top of that.
“Public policies often have unintended consequences that outweigh their benefits,” Drenkard said. “Growing cigarette tax differentials have made cigarette smuggling both a national problem and a lucrative criminal enterprise.”
