On July 14th, the IRS held a public hearing for the debt-equity rule (section 385 of the IRS code) that the Treasury Department proposed last April. The hearing, which had as many as 16 speakers from various industries,...
- Reuters quotes Scott Drenkard on New York's cigarett...
Reuters quotes Scott Drenkard on New York's cigarette smuggling problem
By Hilary Russ
(Reuters) - New York State sells more bootlegged cigarettes than any state, with 60.9 percent of the cigarettes sold secreted into its borders improperly, according to a report released on Thursday.
Arizona and New Mexico also had high rates of smuggled cigarettes, at 54.4 percent and 53.0 percent, respectively, according to the Tax Foundation, a Washington, D.C., business-oriented tax research organization.
"Dramatic increases in state cigarette taxes have yielded additional revenue for priorities like public health, but have also fueled the rise of organized crime and law enforcement corruption," said Tax Foundation economist Scott Drenkard in a statement.
The foundation used data from the Mackinac Center for Public Policy, a Michigan think-tank.
Cigarettes can be bootlegged by bringing in lower-priced packs from other states, counterfeiting state tax stamps, hijacking trucks or bribing officials to ignore illegal shipments.
States, cities and the federal government have hiked taxes on tobaccoproducts in order to raise revenue and encourage smokers to quit.
A USA Today analysis found in September that a 39 cent federal cigarette tax hike signed by President Barack Obama in 2009 contributed to at least 3 million more people giving up the habit.
Join the Tax Foundation's fight for sound tax policy Go
Tax Policy Blog
The official weblog of the Tax Foundation.
Related State Articles
- Lunch Links: Trump on Imports Tax Rate; Judge Says Bitcoin Not Money; The Onion on San Francisco's Tech Tax
- New York Reports Raise Questions about Excelsior and Start-Up NY Job Programs
- Lunch Links: New York City Gives Tax Credits to the Dead; Why New Jersey is Out of Road Money; Nebraska Taxreformus Pokemon
- 1 of 70
- next ›
Tax By State
For information on your state, select it from the drop-down menu.
Ask a Tax Expert
Contact information for Tax Foundation policy staff Ask