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Cosentino: Beware of the unintended results 

Jump to full article: Auburn (NY) Citizen, 2008-05-01
Author: Guy Cosentino

Intro:

In the budget passed by the state Legislature, New York hiked its excise tax on tobacco products from $1.25 a pack to $2.75, making it the highest in the nation. Public health officials were quick to tout the increase, claiming that it would make some current users (some 140,000) quit and deters nearly a quarter of a million children from even starting.

Great numbers, if they are both true and realistic projections. Such declines will likely only happen if such taxation, used for the purpose of deterrence is uniformly enforced. Anyone who has paid attention to the failure of the state to collect taxes from Native American tribal stores or stop "tax free" sales by Internet vendors knows that while there may be the best of intentions here, the numbers may not just play out. . . .

There is a natural tendency, human nature, if you will, to go to the lower priced product, if it can be easily had. The only way to increase revenue and deter usage is if there are no ways around the penalties. Until New York rightfully enforces the collection rules, as approved by the Legislature, such deterrence numbers will likely not be able to be attained.

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