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|User Info||Another State Fraud Unwinding (Tobacco Bonds); entered at 2012-05-06 12:41:25|
Here in Michigan, this income stream was bonded out, twice. "Selling bonds!, it's not like borrowing money." Quoting a local city manager :).|
The other thing is only the legacy tobacco dealers were subject to the deal. They supposedly engaged in false advertising a la the Marlboro Man and doctor testimonials. Notwithstanding I remember my dad and uncles quit cold turkey when the Surgeon General reports hit the papers in the mid 60s.
The exempt cigarettes always advertised that their products caused cancer. I saw brands named Coffin Nails and Death's Head (I never smoked, mostly because my dad beat that idea out of me in junior high) the last time I traveled the DelMarVa peninsula just north of the bridge, selling for 75 cents a pack. The legacy tax revenue brands just don't compete.
And about 18 months ago new taxation laws kicked in making 5 pound bulk pack PIPE tobacco redonkulously cheap. My smoking friends started packing that into ciggie tubes and they tell me these taste much better than any brand they could buy at the lottery ticket counter in the store. I take their word for it.
Now that smoking is cheap because of the Ziplock bulk pipe tobacco, I'm betting the savings is spent on - tada - lottery tickets.
And that is my take on the perversity of unintended consequences.