Pubdate: Sat, 10 Oct 1998
Source: San Jose Mercury News (CA)
Contact:  http://www.sjmercury.com/ 
Author: Ken Cavagnaro

PROP. 10 PAVES WAY FOR BLACK MARKET

I do not smoke, but I'm opposed to the tobacco tax in Proposition 10.
This is just one more step toward tobacco prohibition initiated by
do-gooders who want to protect people from themselves. Yesterday it
was a ban on smoking in bars. Today it is a huge tax increase.
Tomorrow will bring bans on smoking in individual residences and still
more tax increases.

The Mercury News reports the additional 50-cent tax imposed by
Proposition 10 would raise the average cost of cigarettes to $3.05 per
pack. And don't forget federal legislation, although stalled for now,
will be back. The federal tax will eventually pass, and that could
raise the price an additional $1.10 to $4.15 per pack.

At that point a huge unregulated black market for tobacco would
develop. Unscrupulous people would be able to avoid all taxes,
severely undercut legitimate retailers, and make a tidy profit.

- -- Ken Cavagnaro

San Jose
- ---
Checked-by: Patrick Henry