On July 1, 2010, taxes on tobacco products went up significantly again in New York State. They went up $1.60 a pack of cigarettes bringing the total price almost to $10.00 per pack.
What's the impact?
It's very hard on poorer people who will now be spending $70.00 a week for their weekly supply if they smoke a pack a day.
It will mean that more people will head for the reservations and the border states in search of a cheaper fix. It will also mean a black market will spring up and the label of "drug dealer" will take on new meaning.
Overall, it probably is a good thing in the sense that the social benefits outweigh the social costs, but we at the point in raises taxes on tobacco has unintended consequences which can increase social dysfunction and criminalize a new group of people who are not criminals but addicts.
The Berkshire Eagle had an interesting article yesterday on the predictable rush to the border for addicted New York State smokers. You can access it by clicking here.
1 comment:
There might be another, perhaps unintended, consequence...the number of smokers might be reduced. H-m-m-m-m...
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