Tuesday, April 24, 2012

Career opportunity knocking in New Zealand

I read a news article this morning that showed a great career opportunity in New Zealand. The nation is considering raising taxes on a pack of cigarettes to make them cost as much as $100. Yes, a hundred dollar pack of smokes. Now, New Zealand is not too terribly far from several nations, not all of which will join this trend of hyper taxation of tobacco. Indonesia for one will almost certainly not join the trend.

This trick always gets the exact same results whenever it's tried. Smuggling and black markets. New York City jacked the taxes up, and sure enough, black markets and smuggling started up almost instantly. The risks are minimal. A year or two for tax fraud or tax evasion versus twenty to thirty years for smuggling drugs. The profit potential is just about the same, perhaps even better with tobacco.

Now, you go to Indonesia, and purchase cartons of Cigarettes at about $20 each. You buy cases of them, and load them on your boat. You sail down to New Zealand, and smuggle them into some secluded cove. This new Gold is taken into the cities, where they are sold for $200 a carton. You make $180 per carton profit, out of which you have to pay a crew member or two, and perhaps a couple other workers. Thousands of dollars in profit from each case of cigarettes, a couple years of this would allow you to retire in style anywhere in the world.

If you get caught, you end up with a fraction of the time in jail that you would get smuggling drugs.

We've seen what happens when you do something along these lines. You create criminal empires out of thin air. I point you to the Kennedy empire, which was founded on bootlegging booze from Canada and the Caribbean during prohibition. I wonder if the next Scarface Al Capone is even now seeing the opportunities about to crank up in New Zealand.

Politicians. It doesn't matter what country they're from, or what job they have. They always find the worst possible answer to a problem, if the problem even exists.


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