My latest article for American issues Project is live. This week I looked at the much talked about soda tax and how it could lead to back alley deals for a six pack of Mountain Dew:
It started this way for cigarettes. In 1921, Iowa was the first state to tax cigarettes. By 1940, 40 states had followed Iowa’s lead with taxes ranging from one cent to eight cents. Come 1969, every state was taxing cigarettes.
Today, the black market is making a killing on cigarettes. In New York City, state and local cigarette taxes have inflated the price of a pack to over $9. Those sin taxes have created a thriving black market and have resulted in billions of dollars being funneled to elements even more unsavory then the government.
It’s ridiculous to think that someday you’ll be buying Mountain Dew out of the back of some guy’s car, funding the criminal underworld, because taxes have the cost of a soda at over $9 a can. But that is what happens when government attempts to regulate behavior. It doesn’t stop the behavior. It simply moves it underground.
Yeah, it’s a little tongue in cheek. Enjoy!
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