Federal Bills Would Subtantially Increase Tobacco Taxes and Allow New Taxes on Electronic Cigarettes

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Drael

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Oct 29, 2012
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New Zealand (Middle Earth, lol)
I doubt it. Look at the drug war. That's been going on for 40 years, and the federal government certainly isn't about to secede that war in favor of harm minimization.

Yes, but the government is not currently funded strongly by taxes from illicit drugs. No government or voter likes a budget full of cuts, cuts and more cuts to the point of total poverty. If they dont have that money, it will have MAJOR impact. The governments of the world make far more money on tobacco than the tobacco companies. In most places tax exceeds 98% of profits.

Imagine if all those profits went to gangs, instead of the government. In my tiny country, smoking generates a few billion in excess of health costs. I can only imagine how high that figure must be in the US. Our black market has risen from 1% of sales, to 3%, and that 3% was last measured 5 years ago, I imagine its a lot higher now.

Eventually the revenue gains from higher taxes will start turning into revenue losses. Those loses funding crime further than it has ever been funded. Perhaps then we will see a change of tune, if only because no one wants to be _that_ government that is blamed for axing every budget :p

Also smoking is much more popular than any illicit drug, its the second only to alcohol, and far more addictive than any soft drug. There is no equivilant situation IMO.
 
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