The Market Works – Even in the Free State

June 25, 2008 by Cato  
Filed under Liberalism, Maryland, Maryland Politics, Taxes

Our Red Maryland colleague Last Reporter confirms that the market does work, even in the Peoples’ Republic of Maryland. Gov. Martin O’Malley’s $1 per pack tax on cigarettes has caused a huge drop in per pack sales.

According to Maryland Comptroller Peter Franchot:

“Pack sales have declined 23% to 35% each month since the tax was enacted, well in excess of the estimated impact on sales of the $1 per tax increase.”

Don’t be surprised if O’Malley comes back in January and asks for MORE TAXES on cigarettes to make up for the revenue shortfall. Of course, sales will plummet further, and of course we’ll need more taxes …..

If the goal was to cut smoking, great. Unfortunately, that wasn’t the stated goal. Of course those smokers who live close to the Virginia borders are laughing, and hacking, all the way across the state line.

Should we expect Franchot to set up a cigarette check at each crossing?

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