"If you can't beat it tax it" This is exactly what N.Y seems to want. In a recent article in the Wall Street Journal, there is currently a proposed law that would make illegal drug dealers pay tax on their contraband. The new tax would apply to stashes of cocaine, heroin, and other substances.
Much to my knowledge, taxing illegal drugs is more widespread than suspected. The tax is thought of a "extra punishment" and is easier to prove than the associated criminal charge. Tax authorities suggest the monetary penalty is a way of getting tougher on crime.
In my opinion, I don't think such a tax has credibility. How do you tax an "illegal substance?" Critics suggest that the tax sends mixed signals. I tend to agree with them. It seems to suggest you can have the substance if you just pay the tax. I'm not sure the fed would agree with the tax either. After all, they don't let people in California grow marijuania. Who knows. Maybe we'll start seeing drug dealers in Tax Court.
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