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cliaz

I don't even know how to take this

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http://www.wbir.com/news/news.aspx?storyid=31556

 

 

Tennessee "Crack Tax" brings in nearly $2 million in first year

 

During its first year, Tennessee's "Crack Tax" has brought in nearly $2 million dollars in state revenue.

 

The illegal substances tax went into effect last January.

 

Basically, drug dealers are supposed to pay taxes on illegal drugs and alcohol.

 

They pay confidentially, and when they do, they get a stamp.

 

If they're caught without the stamp, they'll be prosecuted for not only selling drugs, but for not paying their taxes too.

 

All money made from the stamps goes to fighting drugs

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Are hookers subject to the crack tax as well?

 

1287416[/snapback]

 

 

 

Or plummers too? :D

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"They pay confidentially, and when they do, they get a stamp. "

 

Who exactly do they pay?

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You'll get into the same kind of trouble with the IRS. You must pay taxes on ALL income, where ever derived, even if illegally earned.

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"They pay confidentially, and when they do, they get a stamp. "

 

Who exactly do they pay?

 

1287441[/snapback]

 

 

 

me :D

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:D This was law in Wisconsin during the 90's before being ruled unconstitutional.

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Smells of double jeopardy: you get punished twice for a single offense. Not to mention the implication - in taxing it is the govt making it a legitimate product?

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Smells of double jeopardy: you get punished twice for a single offense. Not to mention the implication - in taxing it is the govt making it a legitimate product?

 

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Nope. There is the underlying drug-related crime. Then there is the tax evasion. Two separate offenses.

 

And no, the government is not legitimizing illegal behavior merely by taxing it. However, what is interesting is that one branch of the government (the DEA, for example) may confiscate 100% of the illegally earned proceeds and *then* the IRS will tax it all anyways. Seems like if your loot gets confiscated, you didn't really "earn" because you didn't get to keep it. I suppose it serves the criminals right, though.

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Nope.  There is the underlying drug-related crime.  Then there is the tax evasion.  Two separate offenses. 

 

And no, the government is not legitimizing illegal behavior merely by taxing it.  However, what is interesting is that one branch of the government (the DEA, for example) may confiscate 100% of the illegally earned proceeds and *then* the IRS will tax it all anyways.  Seems like if your loot gets confiscated, you didn't really "earn" because you didn't get to keep it.  I suppose it serves the criminals right, though.

 

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Are you a lawyer? I'm not but it still smells of double jeopardy and I wonder what went into the WI law being uncostitutional, whether it was something like that or completely different....

 

edited to add: Well, what do you know it was considered double jopardy.

Edited by Pope Flick

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Are you a lawyer?

 

1288094[/snapback]

 

 

 

:D Yes he is.

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Are you a lawyer? I'm not but it still smells of double jeopardy and I wonder what went into the WI law being uncostitutional, whether it was something like that or completely different....

 

edited to add: Well, what do you know it was considered double jopardy.

 

1288094[/snapback]

 

 

 

I thought double jeopardy meant you had to be tried and convicted the first time and then you could not be convicted the second time for the same thing.

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Are you a lawyer? I'm not but it still smells of double jeopardy and I wonder what went into the WI law being uncostitutional, whether it was something like that or completely different....

 

edited to add: Well, what do you know it was considered double jopardy.

 

1288094[/snapback]

 

 

 

Ah, after reading the article, I see WHY it was deemed double-jeopardy. The state/local tax rates were seen as a criminal penalty for certain drug-related crimes. That IS double jeopardy. However, regular old federal income tax on criminal profits is NOT seen as double jeopardy, as there is no criminal punishment infused into the ordinary federal income tax rates.

 

Very interesting.

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:D Yes he is.

 

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A tax attorney, specifically. Tax-related crimes are not an area I practice in. But I did learn a bit about criminal tax procedure (and other white collar crimes) back in school.

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I thought double jeopardy meant you had to be tried and convicted the first time and then you could not be convicted the second time for the same thing.

 

1288106[/snapback]

 

 

 

 

It should also mean that you aren't charged twice for the same crime at the same time.

 

Isn't that what they said in Berreta? :D

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I thought I remembered somewhere that Kansas was in the process of doing the same thing...

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2mil is a drop in the bucket. Legalize all drugs and start taxing them and see what they produce!

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