Wholesale Cigarette Buying in the
USA by Paul Basci
Wholesale cigarette sales to
retail buyers continue to increase in the United States. Ever wonder why
cigarettes cost so much in the USA? Cigarette taxes imposed by federal, state,
and local governments, account for most of the cost of cigarettes in the USA.
New York City cigarette smokers pay some of the highest taxes in the USA. A
package of cigarettes in the City of New York is burdened with $0.39 in federal
excise tax, $1.50 in state tax, and another $1.50 in city tax. This does not
include the Master Settlement Agreement (MSA) fees paid by manufactures of
cigarettes in the United States, more money collected by state governments for
cigarette sales, as well as the actual profit made by cigarette manufacturers,
distributors, and retailers. It is not uncommon for New York City cigarette
smokers to pay $7 - $8 for a single pack of cigarettes.
As these taxes increase, so does the shift toward buyers looking to purchase
cigarettes at wholesale prices from online stores or crossing state lines to
purchase wholesale cigarettes in lower tax states. Recent tax increases by the
City of Chicago has resulted in large numbers of smokers purchasing cigarettes
from online wholesalers and traveling across county and state lines to purchase
cigarettes. The tax will eventually show city officials that increasing taxes on
cigarettes simply shifts buying patterns of cigarette smokers to other less
expensive options. The internet is one of the most popular methods of buying
wholesale cigarettes. The option has become popular due to the ease at which
buyers can order online and receive their cigarettes at home. Another option for
many is to simply travel to lower tax states or to purchase from Native American
cigarette stores if they live within a reasonable distance from these sovereign
territories. Most cigarette smokers in high tax areas such as New York,
Washington, Maine, Michigan, and Hawaii have considered online purchases of
cigarettes simply to afford the cost of cigarettes.
A typical package of USA made cigarettes purchased from a wholesaler over the
internet can range from $2.50 - $3.00 per pack, compared to $6 - $8 per pack in
most high tax states. Governmental bodies claim the continuing increase in taxes
is meant to curb demand. Most however realize that cigarette taxes account for a
large portion of operating budgets and that the increase in cigarette taxes
often coincides with budget constraints in local or state coffers. Canada, who
long held some of the highest cigarette taxes, shifted policy away form
increasing taxes in order to collect more taxes. How can this be? Lowering taxes
actually enabled more smokers to purchase locally rather than over the internet
thus enabling the government to collect more taxes, not less.
In the USA, the trend is in the opposite direction, increasing taxes
incrementally and thus forcing cigarette smokers to choose alternative methods
such as buying wholesale cigarettes online or from cigarette discount stores and
thus leaving the tax collectors with nothing. Visit
www.wholesaleamericansmokes.com for more information about wholesale cigarette
prices and comparison.
About the Author:
Paul Basci is a specialist in
the field of cigarette distribution and sales. For more information about
wholesale cigarettes
please visit www.wholesaleamericansmokes.comSource of this article:
www.goarticles.com
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