More Smokers Quit After Big Hike in California Tobacco Tax
More Smokers Quit After Big Hike in California Tobacco Tax
So this sounds like a good idea and I was a big supporter of it when the prices here in Australia went up, but I was wrong. We increased the prices with the thought that this would reduce uptake for young people and increase quitting or at least reduce use in older people. Instead we ended up creating a black market for untaxed tobacco. Since then we have had a massive increase in the level of gang activity. This means a fair few young people getting involved with these gangs and ending up committing crimes and going through the “justice” system. We have had drive by shootings, stabbings, abductions, and recently a mistaken abduction of the wrong person resulting in his dismemberment and death.
Increasing the price a little can have an impact but once you cross a threshold the criminal side becomes much more attractive and things become dire. The increase in people quitting may be because people have quit smoking, and I sincerely hope that is it, but in my opinion it is likely a significant portion of the change is a reduction of legal tobacco use and an increase in black market tobacco use.
I feel lucky to live in a place where this black market existed for ages before prices went up lol, it’s mostly chill, old granny-looking vendors just trying to make a buck. Border patrol gets countered the same way it always was, either corruption, agricultural drones, or both, and it probably helps a lot we grow a bunch of our own tobacco.
Like if it didn’t go completely untaxed I’d rather have a black market than a market where big tobacco gets even richer.
In my opinion if it was just a crop like zucchini and you just had to meet agricultural standards, manage exposure to things like e. coli, get the product tested occasionally for heavy metals, and so on, it would be much better. Making it illegal doesn’t work, regulating it out of existence doesn’t work, but dealing with the harms from the other end, setting up programs for getting people off addictive things and using the health system etc, seems much better. I really think getting rid of the control and access these massive tobacco companies have and which was built directly off slavery and genocide would be a good idea.
The price for a 20 packet of cigarettes here in Australia is around $42 in AU dollars, so about $29. The production price is closer to $5, or about $4 USD. All the rest of that is taxes and that means you as a black market producer can make something for $5 and sell it for $30 and make $25 in profit, or you can sell way more at $20 or $15 and still make massive amounts of profit. You could kill the cartels and gangs tomorrow by dropping the tax and it would reduce the market for illegal tobacco to zero. The fact that our government don’t is a good indicator that they don’t actually care.