Get ready for $11 a pack cigarettes

Discussion in 'Economics' started by cstfx, Jun 22, 2010.

  1. This all stems from the Big Tobacco Settlement between 46 states.

    Big Tobacco was given in effect a monopoly (new cigarette companies are required to deposit .10 per each cigarette sold into a trust established under the settlement agreement... Big tobacco is not required to do the same,, creating a $2/pack cost advantage).

    The settlement payments to each of the states are in the form of taxes. Big tobacco gets a get out of jail free card, a monopoly and its customers paying their settlement in the form of taxes.

    Furthermore, to protect the cigarette tax income streams of these states use the Jenkins Act from 50+ years ago to prevent internet / mail order cigarettes. They further barred UPS/Fedex from shipping cigarettes for any online merchant and the credit card companies for facilitating financial transactions for any online tobacco purchases.

    Even the Indian tribes have been shut down from selling cheap cigarettes.

    Taking a step back this master Tobacco Settlement is just a big scam/bribe. Their Lawyers made a boat load and deserved every cent because Big Tobacco got a sweetheart deal and can not possibly lose.

    An interesting read is yesmoke.eu they got the full wrath of big tobacco and the US government...
     
    #11     Jun 22, 2010
  2. Kind of makes it reasonable to drive to virginia or south carolina and pick up a few dozen cartons and save $100s of dollars. Or if you need a job, just buy a carton in S. Carolina, sell it for double in new york and you still have the cheapest prices in town.
     
    #12     Jun 22, 2010
  3. I hate to see more tax dollars wasted.

    Quit smoking or grow your own.

    I wonder how long growing your own tobacco for personal use would stay legal.
     
    #13     Jun 22, 2010
  4. And you'd be doing god's work, isn't that right, peil?
     
    #14     Jun 22, 2010
  5. "Get ready for $11 a pack cigarettes"

    Good!
     
    #15     Jun 22, 2010
  6. jsmith

    jsmith

    Increase the taxes more and in all states.

    Not only are smokers killing themselves but others with second hand smoke. I always see smokers throw out their cigarette butts out the window when driving.
     
    #16     Jun 22, 2010
  7. Shinnecock reservation in Southampton, NY is still tax and duty free...
     
    #17     Jun 22, 2010
  8. kashirin

    kashirin

    if you tax it too much smugglers will bring it for a half price
     
    #18     Jun 22, 2010
  9. Yes, because if I let it go on one, then it's a slippery slope.
     
    #19     Jun 22, 2010
  10. Let them try! You think they'd be able to keep up with the demand? The demand side would wane quickly as people just simply give up and look for some other vice.
     
    #20     Jun 22, 2010