Timminz wrote:thegreekdog wrote:Timminz wrote:Because when the tax on cigarettes becomes too onerous, it drives people more heavily into the black market. This undermines both the revenue-generation, and the reduced consumption goals.
How does it undermine the reduced consumption goals? I understand how it undermines revenue generation.
Also, the black market will exist if the product is made illegal.
It undermines the reduced consumption goal, because, by going into the black market for their smokes, the consumers are no longer paying more for the product, and thus are less encouraged to reduce their consumption.
It doesn't take something being illegal for there to be a black market. Overly onerous taxation will do the same thing, when there aren't any reasonable replacement products (such as there would be in the case of taxing light bulbs in the manner I suggested originally).
So would you say the illegality of certain drugs do not encourage people to reduce consumption? I'm not challenging, just asking. I'm trying to equate this to a real life thing.


