Thursday, April 10, 2008

Who knew people would dodge taxes?

Let's see, New York schemes to boost its cigarette tax by $1.25 a pack to a whopping $2.75 a pack -- the highest in the nation. New York City residents pay another $1.50 in tax on top of that. What could be the possible result? Hmmm ... Think ... Think ...

Oh, I think I know. Could it be an increase in clever tax dodging? Says the New York Times:

Millions of dollars worth of counterfeit tax stamps were seized and a Jordanian man arrested as part of a major undercover investigation into tobacco smuggling in New York, authorities announced Wednesday.

The fake stamps would have allowed unscrupulous cigarette dealers to evade nearly $6.1 million in state and city taxes, authorities said.

This shouldn't be too much of a shock. The New York Sun reports that "27% of city smokers and 34% of upstate smokers sometimes bought 'under-taxed' cigarettes in 2006. These smokers avoided the tax by buying cigarettes from other states, ordering cigarettes over the Internet, and purchasing cigarettes at Indian reservations." That's before the latest hike in taxes.

I think I see a business opportunity here. Does anybody have a printing press? Or just a truck?

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