Gasoline, Cigarettes, Alcohol and Taxes: When Less Is More
Do people visiting Missouri take advantage of the Show-Me State’s lower excise taxes? Right now, the state of Missouri earns tax revenue by having comparatively lower tax rates than neighboring states. Lower tax rates lead to lower prices on gasoline, tobacco, and alcohol — and Missouri’s many regular visitors can and do take advantage of this.
In this video, the Show-Me Institute’s David Stokes and Amy Lutz interviewed several Chicago Blackhawks fans visiting for a Saturday night hockey game against the Blues. Many, but not all of them, knew that Missouri’s tax rates were lower. But after learning of the lower tax rates, all of them planned on purchasing items such as gasoline while in town.
Lower taxes can lead to higher revenues — and keeping taxes low will keep the money flowing into the state of Missouri.