April 28, 2008
Cigarette Taxes and Smuggling in Massachusetts
by Joseph Henchman
Tax Foundation Chief Economist Patrick Fleenor has written an op-ed in the Boston Globe on cigarette taxes and smuggling:
Massachusetts is awash in bootleg cigarettes.
High state cigarette taxes have turned packs of cigarettes into pots of gold for criminals, spawning a massive black market supplied by both smugglers and thieves who can quickly unload stolen cigarettes for cash.[...]
Backers of the current hike argue that it will raise needed revenue while discouraging smoking. The first claim is myopic, since the tax imposes costs on society in terms of lawlessness. The widespread availability of cheap cigarettes via the black market also undermines the second.
Read the entire op-ed here. Read more about cigarette taxes here and here.
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
Monthly Archives
Disclaimer: All views expressed on the Tax Foundation’s Tax Policy Blog are those of the individual authors, and do not necessarily represent the views of the Tax Foundation, its Board of Directors, or its financial contributors. The Tax Foundation makes no representation concerning the views expressed, and does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented.