Truly Bizarre Taxes The Tax On Illegal Drugs

Truly Bizarre Taxes: the​ Tax on​ Illegal Drugs
One can never underestimate the​ enthusiasm that politicians have for trying to​ hunt up tax revenues .​
The creativity of​ some politicians can lead to​ bizarre taxes and unfortunate results.
Taxes on​ Illegal Drugs
One argument for the​ legalization of​ various narcotics is​ that massive tax revenues would be created .​
Interestingly,​ a​ few states already are trying to​ collect such taxes!
More than 10 states have tried to​ tax people that possess illegal drugs .​
For example,​ Kansas levies a​ drug tax on​ dealers as​ soon as​ they take possession of​ the​ substance .​
To avoid prosecution for failure to​ pay the​ drug tax,​ individuals possessing the​ drugs are supposed to​ purchase drug tax stamps and attach the​ stamps to​ the​ drugs in​ question .​
The stamps are valid for 3 months.
In an​ apparent attempt to​ promote compliance,​ the​ Kansas Department of​ Revenue promises:
A dealer is​ not required to​ give his/her name or​ address when purchasing stamps and the​ Department is​ prohibited from sharing any information relating to​ the​ purchase of​ drug tax stamps with law enforcement or​ anyone else.
The tax is​ levied on​ cocaine,​ marijuana,​ methamphetamines and other hard drugs .​
Interestingly,​ the​ state collected over $300,​000 in​ such taxes by going after individuals that were charged with criminal activity .​
This is​ better known as​ the​ Al Capone Theory,​ which is​ derived from the​ fact that authorities were able to​ put away the​ famous mobster on​ tax evasion charges .​
Alas,​ criminal prosecutors have not always welcomed the​ illegal drug tax.
Drug Tax Foils Prosecution of​ Drug Dealers in​ Texas
The 5th Amendment of​ the​ Constitution protects Americans from being punished twice for the​ same crime .​
This concept,​ known as​ double jeopardy,​ caused prosecutors in​ 1989 to​ literally beg the​ state comptroller's office to​ stop accepting tax payments by drug dealers .​
The reason? a​ Texas Criminal Court of​ Appeal ruled that the​ state law assessing taxes on​ illegal drugs constituted a​ punishment .​
As a​ result,​ requiring the​ payment of​ the​ tax constituted double jeopardy if​ the​ taxpayer had already been charged criminally.
In an​ attempt to​ get their clients off on​ drug charges,​ criminal attorneys began advising them to​ rush to​ pay their drug–related taxes .​
The theory was that once the​ taxes were paid,​ the​ drug dealer could not be prosecuted because doing so would constitute a​ second punishment! the​ appellate court agreed with the​ theory and the​ state comptroller immediately stopped collecting the​ Texas drug tax.
Truly Bizarre Taxes The Tax On Illegal Drugs Truly Bizarre Taxes The Tax On Illegal Drugs Reviewed by Henda Yesti on July 05, 2018 Rating: 5

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