Here is a way to ensure that the black market thrives (legal, New York)

[HappyTexan]

My aunt is in NYC and buys her cigarettes from a guy who does weekly runs for the neighborhood.

There's a big enough difference between $50/carton and $125/carton to make that black market thrive in NYC.

And with a 35% tax on pot in CO you can bet a black market will emerge and become widespread.

[BigDGeek]

If pot was legal, I'd never buy black market pot. I'd buy taxed, regulated pot.

I should emphasize that since pot is illegal, I don't buy or use pot of any kind. But only because it's illegal.

[GregW]

High tariffs or complete bans on recreational drugs has always produced a black market. Provide a price advantage to a smuggler and someone will take the risk. Provide a big price differential and lax enforcement and a lot of people will take the risk.

Trying to control the use and abuse of drugs like alcohol or tobacco with high taxes or complete bans, as on opiates, is a criminals dream and a completely futile action for any government. On the other hand the Puritan government of New Hampshire decided that the State should control the liquor sales by owning the stores. it has worked very well. Very few children buy high test booze and the low prices discourage the black marketers from selling in NH. That the state also makes a tidy profit to displace other taxes is also a benefit. Maybe this is the way to sell POT. Use State stores, State quality control and State prices.

[Rakin]

Originally Posted by cruxan

must be a lot of black market cigarettes selling in new York..

By the millions.

[Rakin]

Originally Posted by HappyTexan

My aunt is in NYC and buys her cigarettes from a guy who does weekly runs for the neighborhood.

There's a big enough difference between $50/carton and $125/carton to make that black market thrive in NYC.

And with a 35% tax on pot in CO you can bet a black market will emerge and become widespread.

When I was a smoker, I had a friend get them at the base commissary with no taxes.

Wonder if the Military still get's them there with no taxes ?

[Roadking2003]

Originally Posted by BigDGeek

If pot was legal, I'd never buy black market pot. I'd buy taxed, regulated pot.

Me too, unless it's taxed at a ridiculous rate. Then I would grow my own or go to the black market.

[Roadking2003]

Originally Posted by GregW

High tariffs or complete bans on recreational drugs has always produced a black market. Provide a price advantage to a smuggler and someone will take the risk. Provide a big price differential and lax enforcement and a lot of people will take the risk.

Trying to control the use and abuse of drugs like alcohol or tobacco with high taxes or complete bans, as on opiates, is a criminals dream and a completely futile action for any government. On the other hand the Puritan government of New Hampshire decided that the State should control the liquor sales by owning the stores. it has worked very well. Very few children buy high test booze and the low prices discourage the black marketers from selling in NH. That the state also makes a tidy profit to displace other taxes is also a benefit. Maybe this is the way to sell POT. Use State stores, State quality control and State prices.

I agree with the first part of your post. But government should be in the business of protecting citizens, not commerce.

Anything that government run liquor stores can do can also be done by private business even better.

There is no way that government liquor stores control underage drinking better than private business. The reason there is not a large black market for liquor is because it is so readily available for everyone.

Oh, and guess what. NH prices are NOT cheaper. I checked.

[rainforest338]

Originally Posted by Spaten_Drinker

I am surprised there is no black market in gasoline. Why can't someone buy a tanker truck from the refinery and sell from their back yard?

A few years ago there was a big black market for gasoline in Texas/Mexico. The gas prices were much higher in Mexico than they were in Texas. So what would happen is people would install huge gas tanks on big vehicles like suburbans or escalades or pick-ups, then fill up in Texas drive to a Mexican border town and have all but enough fuel to get back to Texas drained.

[NoJiveMan]

Hire more blacks?

[petch751]

Originally Posted by Roadking2003

And it will thrive in the future with a 35% tax. It's not silly at all.

60% to 90% of cigarettes in NYC were not bought there.

People are not stupid. They always seek cheaper alternatives.

Yep people aren't stupid, they will always seek cheaper alternatives regardless of if the high price is due to production cost or taxes. That's why we are sending even more jobs to other countries.

Government will tax everything it can even your pot.