The lucrative business of cigarette smuggling

[Hum]

Wanna make a quick $1,944,000? Buy a truckload of cigarettes in Virginia and sell them in New York.

Yeah, it's illegal. But that's how much can be made from selling a tractor trailer's worth (that's 800 cases, each holding 600 packs of cigarettes) of low-tax Virginia cigarettes in high-tax New York, based on estimates from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

In 2011, more than 60% of all cigarettes sold in New York were smuggled in from another state, according to the Mackinac Center for Public Policy, a free-market think tank. That's up from about 36% in 2006.

It's not just happening in New York. Mackinac says 15 states have smuggling rates that top 20%. Add in counterfeit cigarettes from overseas, and ATF estimates the lost government revenue at more than $5 billion a year.

Mackinac and others pin the blame on rising state taxes, and say things could get even worse if President Obama's proposed 94-cent-a-pack cigarette tax hike goes through. Anti-smoking groups say the smuggling numbers are inflated, and that the public health benefits of fewer smokers -- the ones dissuaded by pricey packs -- far outweigh any lost revenue or other effects of smuggling.

The Virginia-New York corridor is perhaps the most popular, as the big difference in taxes and the states' close proximity make it an attractive route for criminals. In Virginia, the state taxes are 30 cents. In New York, they're $4.35. New York City tacks on an extra $1.50, taking the tax bill to $5.85 per pack -- the highest rate in the nation.

"We've had people trading our undercover agents kilos of cocaine for cigarettes," says Mike Campbell, a spokesman for ATF. "That's how lucrative it is."

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[Pam14160]

Not a smoker, and lost a wife to them, albeit the tax is just stupid. Just another reason for the idoits running local, state, and federal governments to get into the deep pockets of those with a bad habit.

Why not make some drugs legal so they can get even deeper into the pockets of the tax payers. . . :angry:

[Growled Member]

Not a bad profit margin but I could do better selling weed, I like,

[moloko]

This is good profit margin.

This is why state taxes do not work. There is no reason you buy something a few hours away and it cost more/ less in the same country.