July 24, 2009
How to Buy Cheap Cigarettes
Finding cheap cigarettes these days has become almost impossible. Federal and state governments have piled on new taxes after taxes raising the price of cigarettes far beyond their true value. The most recent Obama cigarette tax raised the price of a pack of cigarettes to more than a gallon of gasoline. So much for his promise to not raise taxes on lower and middle class Americans.
It really comes as no surprise that States across America are increasing their law-enforcement attention on cigarette smuggling, which is costing states billions in annual tax revenues, the Wall Street Journal reported recently. Just a few years ago, those pushing to steal more of your money through higher taxation told us that higher prices for cigarettes would not create a black market. Similar to the Prohibition days of the 1920's, with each new tax comes additional opportunities for entrepreneurs willing to face-off with the Revenuers.
Many Americans have resorted to seeking out relief in neighboring states where the state tax burden may not be as high. For example, people stock up in low-tax states like Virginia and Missouri, and take them back to high-tax states like Michigan and New Jersey.
Other Americans are finding some tax savings in cigarette purchases at Indian reservations.
Since 2005, most of the on-line sources for buying cigarettes at lower prices have been shut down by the government in cahoots with credit card companies. The same credit card companies eager to jack up their interest rates to 29 percent or higher on those least able to pay, have received favorable treatment when it comes to erasing debts under Chapter 7 bankruptcy, in exchange for not accepting credit card transactions from companies selling discount cigarettes on-line.
The government has also been forcing discount cigarettes sellers to report cigarette sales made by their customers to state taxing authorities. So, even though it may appear you save on your initial purchase, when you later get a bill from your state tax office, you discover you have not saved anything at all.
Depending on what state you're dealing with… some states are aggressively going after this tax revenue and forcing collection from its citizens, while others are really only blowing smoke with toothless attempts to convince their citizens to voluntarily pay the taxes. For example, they may send you an official looking notice of taxes due, but if you simply ignore it, you never hear from them again.
At the end of the day, if you want to save money on your cigarette purchases, you've got to deal with the tax issue. That's where the greatest cost of your cigarettes are found and that's where you're going to save the most. While you may not be able to escape the federal taxes on cigarettes, state taxes are another matter.
The solution to buy cheap cigarettes may be to find a private method for purchasing low-cost tax exempt cigarettes without risk of being reported to ANY Government Agency and without ANY State imposed tobacco taxes!
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