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Anytime you impose ridiculous tax rates on a product you will encourage a black market. 35% is really over the top. Especially when the product is very easy to grow.
Maybe some day the big tax, big government idiots will wake up.
That still depends though. If the black market charges $50 for good pot and the legal vendors, with tax included, only charge $35 people will go the legal route.
must be a lot of black market cigarettes selling in new York..
Yes, 60% to 90% are not purchased in NY.
You can make a nice living buying in WV and selling in NY. A carload per week would be quite profitable.
A pack is $5 in WV and $12.50 in NY. That's a savings of $75 per carton.
You can also order them on line at many sites and save a bundle.
"Of the 1,105 licensed tobacco retailers inspected by New York City's sheriff last year, 586 had cigarettes in their inventories that had been purchased on the black market, according to the city's Finance Department.
Evidence of tax evasion is literally all over the ground in some neighborhoods.
An Associated Press reporter who took a short stroll up the Grand Concourse in the Bronx recently picking up discarded packs found that 6 out of 10 had a tax stamp from Virginia. Some had no stamps at all. Only 1 in 10 had a stamp indicating that the pack was purchased legally within the city limits.
The reason for so many out-of-state packs is simple: A bootlegger who stuffs a van with 50 cases of cigarettes in Virginia, where the tax is 30 cents a pack, can evade $166,500 in tariffs by selling that load in New York City, where the combined city and state tax is $5.85."
You can make a nice living buying in WV and selling in NY. A carload per week would be quite profitable.
A pack is $5 in WV and $12.50 in NY. That's a savings of $75 per carton.
You can also order them on line at many sites and save a bundle.
"Of the 1,105 licensed tobacco retailers inspected by New York City's sheriff last year, 586 had cigarettes in their inventories that had been purchased on the black market, according to the city's Finance Department.
Evidence of tax evasion is literally all over the ground in some neighborhoods.
An Associated Press reporter who took a short stroll up the Grand Concourse in the Bronx recently picking up discarded packs found that 6 out of 10 had a tax stamp from Virginia. Some had no stamps at all. Only 1 in 10 had a stamp indicating that the pack was purchased legally within the city limits.
The reason for so many out-of-state packs is simple: A bootlegger who stuffs a van with 50 cases of cigarettes in Virginia, where the tax is 30 cents a pack, can evade $166,500 in tariffs by selling that load in New York City, where the combined city and state tax is $5.85."
Anytime you impose ridiculous tax rates on a product you will encourage a black market. 35% is really over the top. Especially when the product is very easy to grow.
Maybe some day the big tax, big government idiots will wake up.
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?
Because it's difficult, hard to conceal and not that profitable. Tax differences between states are small, so the profit on a huge truck load probably would not even cover your expenses.
How can this be why the black market exists for weed when legal recreational pot sales are just going into effect now?
The black market existed because it was illegal, not because it was taxed. This is the silliest thing I ever heard.
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.
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