The federal Jenkins Act should be repealed now
The federal Jenkins Act should be repealedThere is a lot of tax inequality between the states on what items should be taxed and how much. It is remarkable to see New York drivers fill up their vehicles on the New Jersey side of bridges and tunnels to save money on gasoline. It is also remarkable to see the crowds of New York shoppers at New Jersey malls since they do not have to pay sales tax on many of New Jersey items such as clothes. New York City residents can save almost $40 per carton by buying their cigarettes in New Jersey. New Jersey smokers can go to Pennsylvania border stores and save about $10.00 per carton. New Jersey smokers can save more than $20.00 per carton of cigarettes by going to Delaware, another NJ border state. Many people bought cigarettes on the Internet, but that is not as popular anymore since there is new enforcement of the Jenkins Act. There are many issues between high cigarette tax and sales tax states and low ones. There are similar problems all over the United States.
First of all the Jenkins Act only affects the purchase of cigarettes and other forms of tobacco only. The Jenkins Act requires anyone who sells cigarettes into any state, to report those sales to each state monthly. This would include individual name and order information. The United States district courts shall have jurisdiction to prevent and restrain violations of this chapter. The fines are up to $1,000 and up to 6 months in jail.
The enforcement organization falls under jurisdiction of the Federal Bureau of Investigation (FBI).
This means that if you purchased 1 or more packs of cigarettes over the Internet at a price not including your state’s cigarette and sales tax, you will be reported and the tax agency will collect the taxes due from you. If the seller does not report the incident, the FBI will be involved and if found guilty will face the above penalties.
The FBI has better things to do than to enforce the Jenkins Act. The high cigarette and sales tax states should find other sources of revenue to balance their budgets. They call it interstate trade. Why focus the Jenkins Act solely on tobacco products? What about liquor, gasoline, clothes, and everything else one state or state entity taxes differently than another state? It costs about $90 for a carton of cigarettes in New York City and I can’t imagine most smokers paying that there. The Jenkins Act should be repealed.
America is not enforcing a lot of laws. Why fine tobacco vendors and threaten them with jail sentences and to punish our smoker citizens with severe taxes, is cruel and unjust. I think the FBI has enough to do without tracking down Jenkins Act violators who for the most part law abiding citizens. The world has enough victims without making smokers even greater victims than they may already be. I can’t wait to see the TV program or movie in the theatre about the FBI tracking down tobacco scofflaws. I wonder how much training must be given to the FBI agents to handle Jenkins Act violators. I can’t wait to see private citizens nailed for huge unpaid state cigarette and sales taxes bills. Maybe someone can write a new Perry Mason movie about defending a private individual from state tax authorities abuse.
WE should have one TV series on the FBI tracking down and prosecuting Jenkins Act violators. and another TV series about a fictitious state collecting cigarette taxes.
If they don’t repeal the Jenkins Act, would it not be easy to add additional products and services to the list that is only tobacco products for now? What do you think?
posted by God Bless America - Bob @ 3:54 PM
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