NY's cigarette taxes result in 'weirdest thing'

Thursday, January 7, 2016
 | 
Chris Woodward (OneNewsNow.com)

tobacco shopSome people may favor high taxes on cigarettes, but one policy expert says such taxes in New York are distorting the market.

In late December, the New York Post and other news outlets reported that the Empire State's cigarette tax revenue has fallen substantially in recent years, due in part to smokers buying cigarettes in nearby states with lower taxes and prices.

Jeff Stier, a New York resident and senior fellow for the National Center for Public Policy Research, says he's seen a large number of tobacco shops in just one area along the border of Pennsylvania, New York, and New Jersey.

"It was just a bizarre sight to see on every corner, like 20 tobacco shops, within a square mile. It was just the weirdest thing, but that's how taxes distort markets," he shares.

Stier

"There is no other purpose of having so many tobacco shops in just one rural part of Pennsylvania," Stier continues. "But when you have weird taxes like the New York cigarette tax that is just so ridiculously high, it will cause people to travel to Pennsylvania – or, and we're seeing this more and more often, [it causes them to] buy illicit cigarettes, stolen cigarettes that are used to support terrorism [and] crime."

Meanwhile, Stier says a lot of money from cigarette taxes over the years has gone toward non-health related programs, and not just in New York.

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What's your take on the issue of school choice?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

France begins presidential vote in test for populism
Report: Anti-Semitism rises, but violence against Jews falls
Roadside bomb in Somalia kills 8 soldiers, police say
Iranian candidate says nuclear deal failed to lift sanctions
FBI boss Comey arrives in New Zealand ahead of conference
Security tight as France prepares for presidential vote
Erin Moran, Joanie Cunningham in 'Happy Days,' dies at 56
American tries to learn from United's mistakes in incident

LATEST FROM THE WEB

North Korea threatens to strike US aircraft carrier to show 'military's force'
Pope likens migrant holding centers to 'concentration camps'
Security tight as France prepares for presidential vote
ISIS terror attacks make security key issue in France's presidential election
France gets ready for a rocky vote

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
Small franchises will suffer under joint employer standards

Chick-fil-A restauranteCriticism continues over the Department of Labor’s joint employer standards, which could be traumatizing for small businesses and franchises.