Among the many implications of a cigar tax, you’ll find one of the most incendiary issues in American politics today: immigration. At first, any connection between cigar taxes and immigration may seem remote, but when you think about the importance of cigar consumption here for businesses in Nicaragua, Honduras, the Dominican Republic and other cigar-producing countries, you can trace a possible chain reaction.
An increase in taxes likely leads to a net drop in sales. Even if a consumer’s cash outlay doesn’t change, the amount that moves into the cigar supply chain is eroded. This means that less capital works its way to cigar-producing countries, affecting the standard of living and making legal and illegal immigration more attractive.
“Smoke cigars and keep the foreigners out!”
Well, I’m sure some people feel that way. Frankly, I just want to keep the cash in the hands of people who earn it.
via Puffing Cigars, photo by Esparta via Flickr
Related posts:
- Senate Pushes for Extended SCHIP Taxes
- Tobacco Taxes: The Grand Misunderstanding
- California Cuts OTP Taxes
- Rep. Michael Honda: Cuban “embargo is imprudent politically, economically and socially”
- North Korea Celebrates No-Tobacco Day
Tags: cigar taxes, cigars, Dominican Republic, Honduras, Nicaragua, politics
