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September 14, 2012



Nathan: I see your point---but I think nicotine is a physical addition, not a psychological one. People pay the going rate to get their cigarette fix. For things like watches, radios, gadgets, toys, etc.-----a lot of times---people have a budget. They will buy up to their budget. If there's a tax layered on----people will still pay and still buy----but when they are at their "playtime budget" they stop. So for frequent buyers, they reach their monetary limit sooner, and that last purchase (which would have been funded if not for the tax on the previous purchases) isn't made. That hurts sellers. That hurts vendors. That hurts employment. We've seen the cycle over and over.

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