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Good news, America – authorities broke up a Korean cigarette-smuggling ring in Fairfax County, VA. We can all sleep easy tonight. 17 people are going to jail. Whole thing, very much worth reading, here.

Aside from the smuggling, officers uncovered a sweatshop, probable immigration violations, identity theft, mortgage fraud and attempted murder. But the whole thing was only made possible by money made through cigarette smuggling.

The way it works is that conspirators in Virginia would buy “untaxed cigarettes,” possibly legally in their state, where the cigarette tax is much lower, and then drive to Queens, where they’d resell cigarettes at a profit. As I’ve noted before, New York has the highest cigarette tax in the nation, an intentional prohibitionist policy that leads some to quit but many others to turn to the black market.

As far as these things go, it doesn’t look like the cops violated anyone’s civil liberties and their investigation seems to have been conducted fairly. And the other crimes committed – especially identity fraud – do pose a serious risk to society.

But this obvious scam – buying cheap cigarettes in one low-tax state and re-selling them at a high-tax state – is very easy to conduct and likely to be repeated often. Putting a dent to a simple scam like this would have to require aggressive policing and frequent, humiliating frisking. In effect, the government’s motive for these procedures is to get itself more money.

Politicians could decide that increasing police, government power and punishing cigarette smokers (and not drinkers, burger eaters, workaholics, etc…) isn’t worth the cost of jailing people for providing eager consumers with the product they clearly want.

Don’t count on it though.

Photo Courtesy The Daily Mail

Apparently, New York City’s largest source of illegal cigarettes comes from the Poospatuck Reservation on Long Island. In fact, the unique status Indian tribes are granted – sovereignty within the country – allows them to legally sell untaxed products, such as cigarettes, to other tribes. Folks who don’t live on tribes aren’t supposed to purchase said goods from them.

But, according to an interesting examination of the issue by the Center for Public Integrity, these reservations are often the source of smuggled cigarettes, which has “robbed” the state of nearly $1 billion in revenue in 2007.  The Center notes that Gov. David Patterson has furthered legislation that would punish parties who aim to circumvent tax laws.

Overall, the result of this investigation is well worth reading and revealing of the vastness of the cigarette black market. However, they don’t question the government’s responsibility for the creation of said black market or the wisdom of Albany relying on cigarette tax revenues for money. Nor do they explore the way in which reliance on this revenue tends to distort rational cost-benefit analysis.

And its all because, even after ever more alarming ads, people still choose to smoke. I know many smokers; all understand the inherent risks of their costly habit. But they choose to continue it anyway.

If we bar businesses from creating and selling cigarettes to eager customers, or if we tax them to such a high degree that customers will search for bargains anywhere they can, we will further the driving of a legitimate industry underground. Profits, normally reserved for legitimate, tax-paying businesses, will instead be funneled to unscrupulous thugs and hustlers. And valuable police resources will be wasted.

Even now, law enforcement is wary of going after powerful manufacturers and is instead trying to punish lesser actors like wholesalers and reservations, which rightly is breeding disrespect for authorities and a feeling of bias in enforcement. Cops are, no doubt, tracking smuggling across state lines, from reservations and through borders. Lawyers are filing suits over anyone they deem complicit.

And all because adults understand the risks of smoking and choose to do it anyway.

Cigarettes in Ashtray Photo Courtesy of the Guardian

Michigan has the Sixth Highest cigarette tax in the country. Neighboring Indiana and Ohio have taxes of up to a dollar less. So, naturally, Wolverine State smokers who live close to the border will drive over to get their smokes and save money. And enterpreneurs will engage in the all-American dream of making a buck, by buying up cigarettes and selling them at a profit. The higher the tax disparities – and some states barely tax cigarettes at all – the greater the profit margin for those willing to take the risk.

If one were to skip over a state to Missouri ($.17 tax) and sell those cigarettes in Michigan ($2 tax,)  they could presumably turn a decent profit (Obviously, we do not support any lawbreaking.)

This is a factor that lawmakers should have considered as they gazed upwards into the clouds and vowed to protect our children while legislating this tax increase.

They also should have considered New York, the state, as of June 3rd, with the highest cigarette tax in the country. Business has jumped in Canal Street, resulting in a rise in the sale of cheaper, possibly less safe knock-off cig’s and an increase in ATF investigations. Nearly half of smokers interviewed for a survey in New York City acknowledged having smoked contraband cigarettes. The figure is likely higher as some smokers are unable to tell the difference between the real and fake Marlboros.

Of course, government can look at these statistics and conclude that prohibitive taxes on cigarettes are an unwise policy. Or, more likely, they can intensify law enforcement and find ways to find and even jail more people.

Michigan, where smokers are only legally allowed to have cigarettes with a stamp acknowledging the payment of the tax, appears to be doing the latter. Those carrying six or more cartons without the stamp can be jailed. Retailers who sell cigarettes illegally can be temporarily put out of business by the state. Undercover agents get involved.

As for the tobacco industry, they oppose the tax increases but support harsher enforcement; after all, if someone’s going to profit, and better them then a smuggler.

But here’s a question: what if you are a smoker who really is passing through Michigan? What if you are from Philly and bought a few cartons – say 6! – in PA and have been smoking on your way through the country? Say you’re pulled over in Lansing for speeding and the officer finds the (unstamped) cartons.

Could the officer then send you to jail?

Roebus one is a swell guy. To be honest I don’t like most rappers. They’re pretentious dick bags a lot of times. Roebus one is not. He makes the hip hop I actually like…that’s rare these days. He was kind enough to let me rant and rave about a bunch of shit and ask him a bunch of random questions. Keep your eyes open for this kid…hes seriously dope as shit.

Brad Luck: Based on style, comfort, and price who do you think makes the best hoodys?

Roebus: Chore, I think thats how you spell it.

Brad Luck: I dont think I’ve ever seen any of their shit before. I’m scummy. I rock the shit out of black Walmart hoodys. Shits are like 13$ for the 3xl joint. I’m shitty with the fashion shit. You ever seen two girls and one cup?

Roebus: Two girls one finger is better!

Brad Luck: Whats that all about?

Roebus: You’ve gotta watch it.

Brad Luck: If you had to bang the girls from two girls one cup or the girl from cakefarts.com which would you go for?

Roebus: Cakefarts, she can get it.

Brad Luck: Nice. So you’ve got this new album dropping. Tell me something about it. What songs your favorite off it? Wow, there’s a site called meatloaffarts.com.

Roebus: Yeah, I checked that out too. My favorite song is probably “Suicide artstar”, or “Don’t worry”.

Brad Luck: What producers are you working with? Any tour shit set up? I know you went out with KD Flow last summer. Did you know hes Jewish?

Roebus: Well I’m just working with my boy Tab right now, and my boy E Brown did a track for me. As for tours, I’m planning one for January or March, but its going to be 5 dates in the midwest, and maybe 3 dates locally. Kosha? That’s my boy, and of course I know he’s Jewish!

Brad Luck: I did a few shows with him back in the day. Everything I’ve heard from him he talks about being Jewish. You were out in the Midwest last year? How was that? Anything fantastic happen that the readers of flawlesshustle.com need to know about?

Roebus: True, I mean I know him on a different level and his style has definitely developed since then. Hes actually got an album out with C Rayz Walz called “Freestyle vs Written”.  Check it out.  Yeah, we toured the Midwest and it was amazing. Every crowd was awesome, and they are into all types of shit. The girls were crazy, especially in Wisconsin and Minnesota. Anything exciting? The album is really almost done, ‘m super single, I have’nt had a nervous breakdown in a while, I’m smoking a lot more cigarettes, and I”m super single, I think I said that already.

Brad Luck: Yeah I’m on some single shit at the moment too. Smoking is godly. I love smoking like I love my son. my F.H. business cards job title says “Resident Scum”. Are you ready to drop some scumbag shit on our audience. Its what being super single is all about. You used to be super into the drugs? Whats the scummiest shit you ever found yourself doin’ high?

Roebus: I used to do a lot of scummy shit when I was high, I was more of the slow type though, you know like swimming underwater and breathing. Walking backwards watching everything melt around you. But that’s a tough one. Like 5 or 6 years ago I threw up on this girl’s back while we were doing our thing, and she said keep on going!

Brad Luck: Do you listen to a lot of hip hop or do you find yourself listening to other shit more? I’ll be honest with you…I’m listening to the Clipse right now. Its the first time I’ve listened to any kind of rap music in months.

Roebus: I listen to mostly rock and experimental music, I was listening to some Company Flow the other day, MF Doom, and everything that Cage has ever done. I’m actually waiting for his album to come out. But yeah, I listen to a lot of experimental, post-hardcore, and light emo music.

Brad Luck: I’m scared of the new Cage album. Its either gonna be incredible or a weird piece of shit. You guys make pretty similar shit though. Why hasn’t there been a collabo?

Roebus: Well for one, I don’t personally know him, although I would love to do a track with him, or even just watch him record. He’s my favorite hip hop artist because of similar issues in our backgrounds. The other reason there hasn’t been a collabo is because one of us would probably a OD in the process.

Brad Luck: Any plans on working with any big name people or are you gonna keep it on some personal shit? Have you reached out to anybody? I can tell you from experience most rappers are shit heads about collabo prices. A certain dude from Queens quoted me 1,000$ on a verse when he hasn’t been popular since he did songs with Nore back in the 90s.

Roebus: Nah, no collabs yet. I’m just keeping it very personal. Like on the actual album, there are no guest features. I just have Tab doing 2 hooks, but on the bonus shit I have a few collabs, including one from my group “Gods&Monsters”

Brad Luck: Whats the story with Gods and Monsters?

Roebus: Just one of my boys that I’ve known for a few years. We have similar backgrounds, similar views on music, even though we have two different styles of hip hop. It seems to work out, and its like a project for me to calm down on, and get a little happier. Oh yeah, for exciting shit, this clothing company FREE IDEA is sponsoring me.

Brad Luck: I believe Flawless Hustle has some shirts going into stores. We’re gonna tackle the street wear market. By we I mean Hav one. I’m just gonna write up interviews where porn starts talk about fisting people. But…I pretend to be sleazy. Are you gonna vote in the election that’s coming up?

Roebus: Do you mang.  Yeah, I’m going to vote.

Brad Luck: Mccain right? That Sara Palin is hot and I want her in the white house so we can get flicks of accidental upskirts.

Roebus: No way, Obama. Because me and him have the same birthday and we’re both left handed.

Brad Luck: Thats crazy. I’m left handed too, and my birthday is 9-11. Which is also this dude Gabe who writes for FH’s birthday. I guess that means I’m down with terrorists. Roebus…fuck your logic. Obama is a douche!!! But so is Mccain. What I’m talking about is Sara Palin. Who would win in an oil wrestling match, Palin or Hillary? Please describe the match how it works in your head.

Roebus: Oh man, Hillary would take it, she’s ruthless, But I like that, and Palin would make taking an ass whoopin’ look sexy.

Brad Luck: Shes got kids, so you know she fucks! You wanna take a second to talk about where hip hops going? Like where do you see yourself in this giant melting pot of shitty myspace rappers and terrible street cats pumping out mixtapes by the dozen? Or are you like me and you just dont care?

Roebus: You know what man, I used to care and hate but I really don’t care anymore. Its real recognize real. I can just do my part and make it accessible to the public. If they like it, great, if not, whatever. Imade this album for my own personal reasons, and I make music to get stuff out. If you get something out of it, I’m happy for you.

Brad Luck: That’s where you and me differ. If I ever stop being lazy and drop my album I’m just gonna be on some “This is my shit. If you don’t like it you can eat my dick. If you’re a girl and you really like it you can eat my dick. If you’re a dude and you really like it you probally wanna eat my dick…But I’m not about that homie so take it easy”. Roebus, its been great interviewing you about cakefarts.com and fucking Sara Pallin. Anything to add before we wrap this up?

Roebus: Thanks to Flawless Hustle, this has been quite an experience. My album “life.fraud.death.confidence” is coming out soon. Shout out to Dead Poets, Kosha Dillz, Daniel Joseph, Flex Matthews, and check out www.myspace.com/roebusone730 for updates on the album. Oh yeah, one more shout out, to Free Idea.