| Vern Jacobs'
Taxwire 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. . |
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| The War on Cigarettes Until the tax is
the same in every state, bootlegging is inevitable. To enforce the law,
states
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
other
high tax states will have to impose stronger penalties on the illegal
importing
and will eventually try to impose jail time for violators. Because nicotine
is a highly addictive drug, and users will either pay the higher prices
or will
continue to buy from illegal dealers, the next step will be for the
various
states to lobby That is certain
to cause a major increase in the number of people in prison on drug
charges. Illegal
dealers will soon begin to establish territories for selling illicit
cigarettes. Competition among dealers will lead to more violence and
more
police will be needed to stem the increase in crime. New prisons will
be
required to accommodate the illicit smokers, dealers, tobacco farmers
and
producers. 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 http://www.offshorepress.com/legalways2save.htm
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