You knew it had to happen. . . . again. . . . and again. . . .and again.
You tax a product to death, like tobacco, and the bad guys will find a way to make a profit from it. Take cigarette smuggling. Some of the money, the Associated Press says, is getting to Islamic terrorists.
In other words, your hard earned tax dollars are going to the bad guys, so they can heist cigarettes from North Carolina, take them to Michigan and sell them to the guys who want to do the U.S. harm.
Yeah, that makes sense.
Read and heed.
By GARY D. ROBERTSON
Associated Press Writer
RALEIGH, N.C. — For years, buying low-tax North Carolina cigarettes and selling them on the black market in a high-tax state up north has been an easy way to make big money for criminal enterprises.
Load up a van of Camels or Marlboros and reap a $100,000 profit to sell them if the destination is New York City, which has a $1.50-per-pack excise tax in addition to the $2.75 state cigarette tax.
“The cigarette tax evasion stampede is out of control,” said Jim Calvin, president of the New York Association of Convenience Stores. More than half of cigarettes purchased in his state are bought without paying state or local taxes, largely because of out-of-state smuggling and Internet sales.
Catching people with North Carolina contraband is difficult because it’s one of three states that don’t require tax stamps affixed on every pack being sold.
Interest in restoring the stamps after a 16-year hiatus has been revived as a way to deter smuggling from North Carolina – and in an ironic change – into North Carolina. The state now may be the target for cheaper cigarettes from South Carolina, which has a 7-cent-per pack tax and doesn’t use stamps. North Carolina’s 45-cent tax has grown nine fold since 2005, creating a cross-border difference of $3.80 per carton.
“We’ve only been at a tax disadvantage since the tax went up in the past couple of years,” said Gary Harris with the North Carolina Petroleum and Convenience Marketers Association.
Stamps provide evidence the wholesaler has paid the state tax before packs are shipped to retailers. Black-market vendors have a harder time selling stamped packs because Read More…