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Legal Review: Overtaxing Tobacco Products Can Cause More Harm Than Good in Terms of Illegal Markets in Arizona

Taxing products with negative externalities, such as tobacco products that people are usually addicted to and find hard to let go of, is usually a common tactic for worldwide budgets.

The same is being carried out in the US. The House in Washington is constantly finding ways to collect money through legal means to facilitate growth and development projects in the country. Similarly, Congress has proposed a tax hike on the already heavily taxed tobacco products to a) reduce the usage of such products in the country and b) earn more revenue in the form of taxes. Even though this decision seems to come from good intentions and a rational approach, the negative effect is the growth or expansion of the already pretty dangerous illegal tobacco markets in the Amazon.

The tactic of hiking tax on products with negative externalities, as proven by research, does not essentially work when it comes to reducing the consumption of such products, as the consumers are addicted and cannot quickly stop the consumption. Instead, the only change is that the products start to be largely supplied and bought through illicit or illegal markets, more commonly known as “black markets”. In these markets, the person who benefits is the criminal himself.

As a border state, Arizona has already suffered a lot due to the formation of illicit markets and illegal trades. Congress’s proposal to make commonly consumed tobacco products illegal will likely enhance this issue,” says criminal defense attorney Ryan McPhie. The unlawful markets will grow, leading to an artificially created shortage of products and arrests, causing even more resentment within these communities for the law enforcement agencies.

At this stage, implementing a policy that can cause more resentment among people in the Amazon and the law enforcement forces is something that should be avoided.

As reported in an analysis by the Tax Foundation, a third of the cigarettes bought and sold on Amazon are done so by illegal means. A policy of increasing tax on cigarettes will increase this proportion rather than controlling or reducing it. An evident example of the negative outcome of increased taxes is that, in New York, where the taxes on cigarettes is the highest, half of the sales and purchases of cigarettes are made through illicit markets.

In conclusion, the Federal government needs to be mindful of its decision to increase taxes on Tobacco products or increase the influence and power of international criminal smuggling agencies. Suppose the Biden government does not rethink its proposal. In that case, America could meet the same fate as Europe and have greater civil unrest and opposition between the people of color and the law enforcement agencies. For instance, in 2020, the European Anti-Fraud Office seized an astonishing amount of 370 million cigarettes that had entered the European Union through illegal markets.

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Monarch Montessori School located in the heart of Del Ray is enrolling children 6 weeks to 6 years of age for our half day and full day program.

Our hours of operation are 8:00 AM  to 5:30 PM, Monday-Friday. Monarch Montessori School is open year round, with intermittent breaks.  

Children engage in self-directed, self-initiated activities under the guidance of a trained Montessori teacher. Classroom sizes range from 8-12 students. Our robust curriculum includes botany, sensorial activities, the social graces, culture, math, science, practical life, geography, music appreciation and language arts. 

You’ll get half off of the registration fee when you register and begin care with us before April 30, 2023.

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Press Release:

EDBS Dental Billing Solutions is pleased to announce that it has achieved compliance with the federally mandated standards of the Health Insurance Portability and Accountability Act (HIPAA) through the use of Compliancy Group’s proprietary HIPAA methodology, The Guard® compliance tracking software, and HIPAA Seal of Compliance®.

The HIPAA Seal of Compliance is issued to organizations that have implemented an effective HIPAA compliance program through the use of The Guard, Compliancy Group’s proprietary compliance tracking solution.

Clients and patients are becoming more aware of the requirements of HIPAA compliance and how the regulation protects their personal information. Forward-thinking providers like EDBS Dental Billing Solutions choose the HIPAA Seal of Compliance to differentiate their services.

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Del Ray Dog Fest & Yappy Hour

The 1st Annual Del Ray Dog Fest is a fun outdoor event that will include dog-centered activities, dog menu items, live music, vendors and food on Sunday, April 2 from 11am- 3pm at the George Washington Middle School parking lot.


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