What will happen when tobacco become more expensive than pot?
Black market cigarettes are already big business across states with high tobacco taxes. As the feds heap on additional taxes, this issue will only get worse.
There is substantial trafficking from low tobacco tax states (Kentucky, Virginia, North Carolina) to high tax states (New York, Massachusetts, California). Traffickers remove the original state's tax stamp and affix counterfeit stamps of the destination state. Goods are shipped cross-country and sold at a discount to small retailers (especially convenience stores).
Another gimmick is diverting US manufactured cigarettes that are designated for overseas or "duty free" sale. These cigarettes have no state or federal tax associated with them. Once diverted, these cigarettes are big money makers because of their extremely low base cost. For example, a carton of "duty free" Marlboros retail for just US$15 in Hong Kong.
Jack up the tobacco end-user prices high enough and the cigarette industry will be completely dominated by organized crime.
Im sure soon govt will legalize pot- they want to control everything, when they do get control of pot- nobody will be able to afford that either.! They are putting a tax on pop- 18% now they want a piece of everyones success! Every week it will be another food product they will tax! I hear they are attacking the Cheerio Comp. What the? We have a bunch of commies running America!
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