Wednesday, 4 November 2009

New York Hiking taxes on cigarettes ... again.

Living in New York in record numbers are turning to Indian reservations such as Poospatuck Indian reservation on Long Island, to save on their purchase of cigarettes. Tax Free Cigarettes are sold on tribal lands in New York, and the savings are significant. After lawmakers approve the state last campaign, smokers will be able to avoid $ 2.75 in taxes per pack by buying on the reservation. Discount jumps to $ 4.25 if you factor in the municipal tax added in New York.
But Indian reservations are not the only source of tax-free smokes.

You can find counterfeit cigarettes from China, imported to one of the many container ships coming into the country. Entrepreneurs are also logging on cigarettes in low-tax states like Virginia and shipping them north. And, of course, the Internet has provided a huge source of tax-free smokes.

Of course, in many states, like New York is really annoying these smuggled cigarettes are sold by entrepreneurs exploiting differences in tax rates, at a cost of "billions and billions of dollars of lost revenue to government that are willing to balance their budgets on the backs of the poor smokers.

Higher taxes, the more and more people are turning to alternative sources of smoke. You must be crazy to pay almost $ 9 per pack, and some of them will do in New York.

In Iowa, politicians gloat over a report that showed sales of cigarettes in Iowa fell 36 percent in the year after each state tax went up $ 1. What idiots enough of his fellow Hawkeye's taking their money elsewhere. For example, 12 cartons of cigarettes can cost $ 500 in Iowa, but the short trip to Missouri could save $ 200.

Two store managers, who do not want to remain anonymous, said their sales of cigarettes doubled compared to the Iowa law was implemented in March last year. Caroline Hulett, manager of Kum and Go store on Interstate 35 near Lamoni, without saying exactly how much of its business has increased, but she hopes the law remains in force, and she meets a lot more people in Iowa.

"People who make the laws they do not play with a full deck," she said frankly. "But I love the people of Iowa, and I am happy to take their money," she said.

"I hope Iowa expel alcohol next. I love to raise their spirits and beer sales."

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