At a time when a crumbling economy has forced governments into deficit financing, smugglers and in some cases their mob partners are pocketing hundreds of millions of dollars in profits. The cheap cigarettes not only fuel the spread of smoking, which costs Canadian taxpayers about $4.36 billion annually in health care, but also rob governments of money that otherwise would go into official coffers to pay for services including health care. Or produced by unlicensed manufacturers on Canadian reserves and sold throughout the country is costing them at least $1.6 billion a year in lost taxes..

But wait a minute. You previously spent hundreds of thousands on independent consultants on modeling huge changes to Alaska’s oil tax, and now you find out the modeling was insufficient, but you don’t do a new program of modeling and analyzing to determine the optimal oil tax system for Alaska? If SB 21 was completely inadequate, then just tweaking it without a proper analysis sounds irresponsible. If state obligations are approaching a billion dollars, you may need to spend a few hundreds of thousands of dollars on a rigorous independent analysis..

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