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Tennessee’s War Tax on Drugs

Bill Hobbs notes that Tennessee will start taxing illegal drugs next year (I’ve mentioned this before). Says Bill:

This actually works – and is a pretty good idea, though it sounds a bit odd at first. The law will require sellers of illegal drugs to pay excise taxes, just legal businesses. Most drug-pushers won’t comply, of course, but the law can be used to assess back taxes on dealers who are caught by law enforcement, adding an additional financial penalty to their crimes while also bringing in a few extra dollars for the state budget.

Depends on what works means. Will it curb illegal drug sales? Nope. Will it generate tax revenue? Unlikely. What will it do? It will give prosecutors another criminal charge (tax evasion) to apply against drug dealers. It will also give the powers that be another justification for seizing assets.

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