Posts Tagged ‘tobacco settlement’

Publius

Nation’s Worst Attorney General: Blumenthal Steered $65 Million in Legal Fees to Political Allies

by Publius

From Legal News Line:

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A new study focusing on what one organization feels is an abuse of power was released Wednesday, naming the 10 worst state attorneys general in recent history.

Hans Bader, Counsel for Special Projects at the Competitive Enterprise Institute, wrote the report, which names Connecticut Attorney General Richard Blumenthal as the worst.

“The nation’s worst state attorney general is Richard Blumenthal, a tireless crusader for growing the power of his own office and spreading largesse to his cronies,” Bader wrote.

Bader focused largely on Blumenthal’s role in litigation against tobacco companies, starting with the 1998 Tobacco Master Settlement Agreement.

“Wealthy trial lawyers across the nation received $14 billion nationally in attorneys’ fees under a $246 billion-plus settlement paid for primarily by smokers — the alleged victims of the very fraud that begat the settlement,” Bader said.

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Lawrence Meyers

Raising Tobacco Taxes is Dumb

by Lawrence Meyers

Isn’t it interesting how every time a state government is in fiscal trouble that the first thing they decide to do is to raise taxes on the sale of tobacco?  Somehow, legislators have it in their heads that the only people who might be upset by raising the cost of tobacco are smokers.  And, since smoking is bad for smokers, and smokers shouldn’t be smoking anyway, maybe making smokes more expensive will dissuade smokers from smoking.

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Of course, this is government we’re talking about.  So it never works out they way they think it will, no matter who tries to tell them.  In fact, this plan to raise revenue from tobacco taxes doesn’t actually work at all.

See, governments don’t understand free markets.  If you raise the price of a certain good or service beyond a certain point, people who want the product badly enough will find a way to procure it more cheaply.  Remember Prohibition? Same thing.  To avoid paying the higher taxes, they will cross state lines, buy from an Indian reservation, buy over the internet, or even resort to black market purchasing.

And, if raising taxes does actually cut down the number of smokers, then the expected revenue from this tax increase will be less than expected…because there will be fewer smokers!

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