24 April 2011

Didn't We Learn Anything from Prohibition?

Apparently not.

Violent criminals are starting to smuggle cigarettes from low tax states to high tax states.  In order to get more revenue, 27 states raised taxes since 2007.  So criminals from the other 23 states are now finding huge profits in smuggling cigarettes.  As an example, smugglers can buy smokes in Virginia for $4 a pack, and sell them in New York for $14 a pack.

While I didn't predict this consequence of rising taxes, I have written about the dangers of increasing excise taxes before.

But I am predicting that alcohol is next.

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posted by Jeff Holt at 10:06

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