Saturday, March 15, 2008

First They Came For The Smokers

What!? Enacting absurdly high sin taxes leads to black market activity?! The Detroit Free Press:
Big-time profiteers and small-time cheaters are smuggling 7 million cartons of cigarettes into the state annually to evade Michigan's high cigarette taxes, costing the state about $140 million a year.

And some metro Detroit retailers are selling cigarette packs with sophisticated counterfeit stamps to evade a 10-year-old law aimed at thwarting smuggling.

Michigan's $2-per-pack tax, the fourth-highest in the nation, helps fuel an illicit demand for cigarettes bought in other states with much lower taxes.

Considering that we're such a well-run state, one would think that this would've been foreseen. Anyway, the Freep reasonably concludes that tobacco is evil:
So now we know another way tobacco is bad for Michigan. Not only does it cost the state health care system hundreds of millions of dollars in smoking-related illnesses, but the Treasury can show at least $140 million in lost revenue from cigarettes being smuggled into Michigan from states with lower tobacco taxes than the $2-a-pack levy here. That's a lot of money going up in smoke.
We'll skip arguing over whether the state should really be involved in health care. Amusingly, commenter "buka2" writes, "Just outlaw all smoking, and then the $140,000,000 won't be available to lose." Sometimes logic stings. But Michigan doesn't lose money from tobacco; in fact, that first Freep article mentions that the state makes about a billion dollars a year from tobacco. That $140 million just represents the obvious result of black market activity from overly high product taxes. But here's the mindset, courtesy of a few Freep commenters. First, "Allycatt":
"FreedomOfSpeech, I think we would gladly pay a 6% tax on our cigarettes. Right now, state tax alone is 40%. Hell, I was even for the 61 cent increase for the SCHIP program - as a smoker, why do I not have a say in how that money is spent? They will continue to tax our cigarettes, because we are the bad guys, they will continue to funnel the money to everywhere but where it should go (health & stop smoking programs). Non-smokers should be damn happy that we are there to pick up the slack. Igor: APPLAUSE! It took me two years to get management to get my office neighbor to tone down the cologne. Headaches, teary eyes, runny nose within seconds when I'm exposed. PERFUME SHOULD BE BANNED OR TAXED TO THE MAX."
We've been so dumb all these years. We should just pass a law outlawing anything that's annoying to anyone! (It'd never pass, of course; obviously, it wouldn't be in the interests of congresshumans.) Then we'd be free from anything that we don't like! Freedom! Here's some "BubbRubb" for ya:
Ty - One last thing about taxing smokers before I begin my weekend: smoking causes many diseases which we all end up paying for through loss of productivity, paying into government assisted health care, etc. I think that smokers should pick up the tab for this, as there is no common benefit for taxes we pay for this. The only fair way I think would be a sin tax.
Hmm....how could we get smokers to pick up the tab for this? What about free mark--no...wait, how about eliminating socialized heal--no....I just can't think of a good idea! Whatever the heck the problem is, it definitely must call for some sort of government action. After all, anytime someone isn't as productive as they otherwise could have been, it harms me and it should be illegal. Next to go: World of Warcraft! This is an example of a doctrinaire liberal slowly following his philosophy to its logical end: state control of nearly everything in your life, for your own good.