The Tax Foundation reports on the proposal to increase Indiana’s cigarette tax from 99 cents to $3 a pack.
Illinois tax is now $2.98 a pack.
One can easily see that smuggling cigarettes from Indiana will no longer exist, if its tax is set higher than Illinois’.
As one can see from the post-Indiana tax hike map, smuggling from Kentucky would still be profitable.
A slight inconvenience to the people who drive “by the dark of the moon.”………..as a semi trailer drive to Ky and back.
When will the Illinois Democrat-termites figure out a way to tax people leaving Illinois?
Will departing children be taxed at a lower or higher rate than an adult?
Actually, the Chicago Federal Reserve Bank has already figured that out with a huge additional real estate tax.
Illinois homeowners, who already pay some of the nation’s highest property taxes, should pay about 40 percent more for the next three decades to wipe out the state’s crippling pension debt, according to a trio of economists at the Federal Reserve Bank of Chicago.
The economists argue that paying off the state’s $129.1 billion in unfunded pension obligations cannot be done with revenue from new taxes such as a tax on marijuana sales or on financial transactions.
“In our view, Illinois’ best option is to impose a statewide residential property tax,” they wrote, in part because it would be fair: “Illinois residents who have benefited most from the past services of governmental employees are more likely to be homeowners, so it seems reasonable that they should pay a larger share of the costs.”
They are proposing a statewide tax of 1 percent of a home’s value. Under their plan, the tax bill on a $500,000 house would go from about $11,600 to $16,600, an increase of $5,000, paid each year for 30 years.
The economists—Thomas Haasl, Rick Mattoon and Thomas Walstrum—calculated that a property tax equal to 1 percent of a home’s value could plug the state’s pension gap in 30 years.
Illinois homeowners pay an average of 2.32 percent of their home value in property tax every year, which according to WalletHub is second only to New Jersey’s 2.40 percent.
https://www.chicagobusiness.com/article/20180514/CRED0701/180519952/chicago-fed-economists-recommend-statewide-property-tax
The answer is get the hell out of this godforsaken state as fast as possible
I can’t imagine many people who don’t live right by the border will go to Kentucky for that purpose.
The tax in Missouri is the lowest in the country.
The last time I checked it was $0.17/pack.
Smuggling from OH and WI Indian reservations is still profitable, too.
Just set up 6 month involuntary re-education camps for smokers.