Anthony Weiner: “The fact is that the various States have different levels of tax on their tobacco products. Some States are very high.…”

“The fact is that the various States have different levels of tax on their tobacco products. Some States are very high. My State of New York is among the highest. Our city puts an additional tax. It is one of the prerogatives of the different States-- some have chosen to tax more; some have chosen to tax less. But the fact is that there is an enormous economy around avoiding that tax, essentially violating the law. There are Internet tobacco sites that exist with their sole purpose apparently being to deliver tobacco to people outside the realm of taxation. That's a problem. It's a problem not just because it makes it impossible for States to collect taxes that they've levied, but it's also a problem because the sale of Internet tobacco encourages underage smoking. It also makes it very easy for anyone who wants to commit illicit acts. When the Government Accounting Office took a look at a smuggling ring that they discovered in the early part of this century, they found that Hezbollah, the international terrorist organization, was using this difference in taxes to fund their illicit activities.”