It’s as simple and intuitive as Newtonian physics, but it’s a principle that eludes most on the Left: raising taxes will produce a reaction in consumers. The new tax hike on cigarettes in Washington, DC is the latest case in point. In 2009, the city raised the tax on a pack from $2 to $2.50. At the time, city officials said revenue would go up. But guess what they forgot? Taxation does not happen in an economic vacuum. Once the taxes went up, smokers reacted by buying cigarettes in Maryland and Virginia. So, the city actually lost revenue. Apparently, it’s a lesson that’s going to have to be learned over and over again. For more, read the Daily Caller story.
- Deepwater forgot to read PBN
- Windy Pork
- Just in (no surprise): voters want more choice and accountability in education
- Another low ranking for RI
- Tax Day Rally
- Somebody has to sell it
- In case you missed it, and so you don’t
- Too risky for me but not for thee?
- ‘There are lies, damn lies – and statistics.’
- From our friends in the US House