High government taxes on cigarettes cause the smuggling problems.

When governments try to balance their budgets on the back of mostly low and lower middle class smokers they themselves are creating the smuggling problem. When government adds several dollars to the cost of one pack of cigarettes they make it very lucrative for smugglers. So what did New York State do about the problem reported in this article. They just raised taxes $1.25 a pack this year to $2.75 to help with their budget shortfall. Every time the states or the Feds raise cigarette taxes they call it a win win situation. They say less people will smoke and they will raise more tax revenue. Obviously there is also a lose lose situation the governments do not tell you about. They are promoting crime and robbing poor people.

I do not smoke but let me tell you what I see going on. My observations are that when one in a couple smoke they both smoke. Most have a family income of less then $30,000 and some are on government assistance. They are addicted and they are not going to quit smoking because government raised the taxes. They each smoke at least a pack a day or 60 packs a month. At $5 a pack it costs them $300 a month. They do not have that much disposable income so some necessities are put off indefinitely. Often their children go without or they live in substandard housing, etc.

Liberal answers to all revenue shortfalls is more taxes especially on things that they do not like and their answer to social problems is to tax or legislate them out of existence. It has never worked and they should not then act surprised when their laws bring these additional problems.

FOXNews.com - Cigarette Smugglers Funnel Money to Terror Groups, Report Finds - Politics | Republican Party | Democratic Party | Political Spectrum

A 15-page report congressional report, obtained by FOX News, includes intelligence from law enforcement as well as New York State’s Department of Taxation and Finance.

The report reads in part: Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

“This is a very serious homeland security issue, one that has gone unnoticed for far too long,” said Rep. Peter King, (R-N.Y.), the ranking member of the House Homeland Security Committee, who called for the investigation.

“Cigarette smugglers are able to generate millions of dollars in illegal profits with a great deal of this wealth being sent to terrorist groups overseas – groups that would like nothing more than to inflict devastating harm on our country and its citizens.”

One of the key issues, according to the report, is a potential flaw in New York State policy. According to King’s office, there is a policy in the state of “forebearance,” or refusing to collect on sales of Native American tax-free cigarettes to non-Native Americans.

Critics of the policy say it has effectively created a safe haven for smugglers. In some cases, the report says, a well-organized operation can buy cigarettes tax-free on New York’s Indian reservations and sell them at a great profit in the New Yock City area,