Commentary, news and reflections about
this taxing life, by Vernon Jacobs, CPA.
Jacobs is the co-author of Legal Ways to Save Taxes Offshore & Onshore, of Offshore Tax Strategies, of The Controlled Foreign Corporation Tax Guide and of Risk Management for Amateur Investors. He is the Editor & Publisher of the International Wealth Protection Monitor newsletter and the free Q&A service, the Jacobs Report on International Financial Planning. He is the President of Offshore Press, Inc. and is a member of the International Tax Technical Resource Panel of the American Institute of CPAs. He has been a CPA since 1962, with a focus on taxes since 1975. .
The War on Cigarettes
According to the Baltimore Sun (Jan, 9, 2007) AARP is mailing 350,000 leaflets urging recipients to return an enclosed card to their state representatives, asking for their support for the Healthy Maryland Initiative, to impose a $1-a-pack tax increase on cigarettes to fund the expansion of Medicaid, drug treatment and a pilot program to help small businesses with health insurance costs.
Until the tax is
the same in every state, bootlegging is inevitable. To enforce the law,
will have to assign police to patrol the borders and to watch for local
residents in stores just across the border. Because that won’t have a
significant impact on the illegal importing of cigarettes, Maryland and
high tax states will have to impose stronger penalties on the illegal
and will eventually try to impose jail time for violators.
is a highly addictive drug, and users will either pay the higher prices
continue to buy from illegal dealers, the next step will be for the
states to lobby
That is certain
to cause a major increase in the number of people in prison on drug
dealers will soon begin to establish territories for selling illicit
cigarettes. Competition among dealers will lead to more violence and
police will be needed to stem the increase in crime. New prisons will
required to accommodate the illicit smokers, dealers, tobacco farmers
In time, no one will remember how the “War on Cigarettes” began and no one will believe that it could be concluded by letting people buy cigarettes without imposing punitive and selected taxes to prevent people from causing harm to themselves.
by Vernon Jacobs, CPA
Co-author of Legal Ways to Save Taxes Offshore & Onshore
|Vern Jacobs' Taxwire
is a free syndicated service for the print and Internet media. To
receive Vern Jacobs' Taxwire
by email, fill in the short
Jacobs is the co-author of Legal Ways to Save Taxes Offshore & Onshore, with J. Richard Duke, JD, LLM.