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Tax Increases Driving Customers To Neighboring States

Kyle Newton July 2, 2012 News & Politics 2 Comments

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One of the biggest complaints about the large number of taxes that have been hurled at the tobacco industry is that the people who are passing these laws either have no understanding of how profit is turned in that business, or that they are intentionally trying to snuff the industry out altogether. One of the key problems of the high tax rates is that it has caused many people to head out of state to buy their tobacco products in bulk. This is having a tremendously negative effect on tobacco shops and convenience stores because it means that they are losing customers, which means their business will falter, which further means that the state will not get any tax money.

It makes one wonder if the states truly have started these high tax increases simply for the sake of shutting the industry down. It is almost as though the states are trying to impose a form of tobacco prohibition by way of making people not want to buy the product. After all, if something is legal but nearly impossible to attain at a reasonable price, people will suddenly not want to bother buying it anymore. It used to be that people could turn to alternatives such as cigars and smokeless tobacco, but even those products are starting to feel the wrath of the tax-hammer.

If something is not done, then many states all across the country can expect to see more and more shops close, which in the long run has nothing but a negative impact on the state’s economy. In the meantime shops are hanging on by the skin of their teeth and things are only looking bleaker.

 

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http://towson.patch.com/articles/health-advocates-shop-owners-argue-tobacco-tax-increase

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