When will they learn? The economic geniuses in New York raised cigarette taxes by 58%, which increased the price of pack of smokes in New York city to a remarkable $11.60.
As you might expect, cigarette sales plunged by 27%. As you also might expect, cigarette sales are up by more than 40% in neighboring states and Indian reservations.
The NY Post reports the “duh” details:
Sales of taxed cigarettes have plummeted a staggering 27 percent statewide since the highest cigarette tax in the nation took hold in July, a Post analysis has found…
“That’s what we warned would happen, and obviously it has come to fruition,” said James Calvin, of the New York Association of Convenience Stores.
“Every tax increase drives more smokers to that dark, shadowy, unregulated, unlicensed, untaxed side of the street. The whole policy is self-defeating.”
If the trend continues, the state could fall far short of the $260 million windfall Paterson expected from the 58 percent tax hike.
How do you solve the shortfall? Liberals would tell you the only solution is to raise taxes.
Source: New York Post
