2 ms·
> How high do you think the delta needs to be before smuggling gets serious? In my view a good estimate is to look at restaurants, as they are pretty good at f
by belorn 6y ago
> How high do you think the delta needs to be before smuggling gets serious?
In my view a good estimate is to look at restaurants, as they are pretty good at figuring out the pain point of how expensive something can be and people will still buy it. If it cost more than that then the price is too high.
- thaumasiotes 6y agoI think the issue is more complex than that. Cigarettes are a great example here -- they can be really expensive and people who are already smokers will still buy them. But there's still a limit to just how heavily you can tax cigarettes, because the higher the taxes are, the more profit smugglers can receive. They'll go out there to bring the price down even if smokers were willing to pay the higher prices, as long as their smuggling costs are covered.