Cigarette Taxation In The United States
Cigarette Taxes Cigarette taxation has appeared to be a disputable issue throughout American history. The beginnings of cigarette taxation can be traced back to the late 1700s when Alexander Hamilton, the secretary of the treasury, introduced the first federal excise tax on tobacco products. The government places taxes on cigarettes to reduce the number of smokers and to increase revenue. A cigarette tax, like any other tax, increases the amount of revenue the government can spend on social programs. Though, many have said that the major increase of taxes in cigarettes has led to the expansion of the black markets and crimes.
Several states have raised their tax in the past couple of years. “Currently, New York has the highest tax at $4.35, …show more content…
They include interstate smuggling, crimes, theft, black markets, and other legal ways to avoid the tax. With a pack of cigarettes in New York City costing about $12.50, and a pack in North Carolina costing about $5.30, along with the facts that cigarettes are easy to transport and not a high priority of law enforcement, this creates a large profit potential for smugglers. In 2011, the case of Mohamad Hammoud, who was the leader of a cigarette smuggling organization, caused uproar in the cigarette industry. He was responsible for smuggling over $8 million dollars worth of cigarettes from North Carolina to Detroit. “Hammoud’s case became high profile, because he was connected to the terrorist group Hezbolla. Police seized houses, luxury cars, and over $700,000 from Hammoud” …show more content…
Many leaders started to import cigarettes from other countries and sell them for half of the current U.S. value of cigarettes. The countries in which cigarettes were being imported from include China, Mexico, France, UK, and Lithuania. This tax increase has damaged economies and societies throughout the world. I personally think that the federal government needs to address this issue. I strive for the idea of promoting good health and educating the people of the harm and damages smoking can cause, but the methods to do so need to be reconsidered carefully.
Overall, increasing taxes can be a win-win situation for everyone, but may have its pros and cons. It increases the revenue government can use for social programs and reduces the number of smokers. And in the long run it can damage our economy by pushing consumers into the black market. The action plan to diminish smokers, yet keeping our economy in good standing, needs to be reconsidered for the sake of our country. Our economy is still trying to recover from the recession and lowering the taxes on cigarettes will inspire everyone to spend
Several states have raised their tax in the past couple of years. “Currently, New York has the highest tax at $4.35, …show more content…
They include interstate smuggling, crimes, theft, black markets, and other legal ways to avoid the tax. With a pack of cigarettes in New York City costing about $12.50, and a pack in North Carolina costing about $5.30, along with the facts that cigarettes are easy to transport and not a high priority of law enforcement, this creates a large profit potential for smugglers. In 2011, the case of Mohamad Hammoud, who was the leader of a cigarette smuggling organization, caused uproar in the cigarette industry. He was responsible for smuggling over $8 million dollars worth of cigarettes from North Carolina to Detroit. “Hammoud’s case became high profile, because he was connected to the terrorist group Hezbolla. Police seized houses, luxury cars, and over $700,000 from Hammoud” …show more content…
Many leaders started to import cigarettes from other countries and sell them for half of the current U.S. value of cigarettes. The countries in which cigarettes were being imported from include China, Mexico, France, UK, and Lithuania. This tax increase has damaged economies and societies throughout the world. I personally think that the federal government needs to address this issue. I strive for the idea of promoting good health and educating the people of the harm and damages smoking can cause, but the methods to do so need to be reconsidered carefully.
Overall, increasing taxes can be a win-win situation for everyone, but may have its pros and cons. It increases the revenue government can use for social programs and reduces the number of smokers. And in the long run it can damage our economy by pushing consumers into the black market. The action plan to diminish smokers, yet keeping our economy in good standing, needs to be reconsidered for the sake of our country. Our economy is still trying to recover from the recession and lowering the taxes on cigarettes will inspire everyone to spend