Nov 17, 2009

Smokers quickly find tax loophole!


NOTE: THIS STORY CLEARLY ILLUSTRATES HOW THE FREE-MARKET WILL ADAPT TO GOVERNMENT OPPRESSION. IF GOVERNMENT CLOSES THIS LOOPHOLE, THEN "ROLL YOUR OWN TOBACCO" WILL SIMPLY MOVE TO THE BLACK MARKET AND CRIMINAL GANGS WILL THEN HAVE ANOTHER PRODUCT TO PROFIT FROM.
As soon as the new law took effect, raising taxes on roll-your-own cigarettes from $1.10 to $24.78 a pound, companies adapted. They all but shut down their roll-your-own brands and reinvented them under a less-restricted, less-taxed category: pipe tobacco. It's still destined to be rolled and smoked, but it's taxed at barely a tenth the rate, $2.83 per pound...READ MORE

1 comment:

Ali said...

Sean, I think it's more likely that people will import their rolling tobacco before moving to criminal gangs to smuggle it in.