In the past we’ve blogged about the spread of illegal drug taxes on things like marijuana and cocaine (see here and here). Although law enforcement officials adamantly insist that the sole purpose of these taxes is to raise revenue, as an economist it’s easy to see a more plausible rationale for them.
By taxing illicit substances, law enforcement authorities are provided with another tool to crack down on illegal drug use and distribution—even when suspects are able to avoid criminal conviction. Despite the public statements of law enforcement officials, the claim that the only purpose of these taxes is to raise revenue for programs like any other sales, property or income tax is highly implausible.
In the past, courts have overturned these taxes in many states on grounds that they force suspects to self-incriminate—after all, paying a “marijuana tax” is essentially an admission of guilt—and they subject suspects to double jeopardy, once through the criminal code and again through the civil code governing tax evasion.
Last week, Tennessee became the latest state to have its illegal drug tax struck down as unconstitutional. A Tennessee judge has ordered the state to abandon its highly-publicized illegal drug tax enacted just last year:
The Article: Judge Strikes Down Tennessee Illegal Drug Tax as Unconstitutional
Originally written by Andrew Chamberlain
