Cigarette taxes helping to fund terror

Fox News:

Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

A 15-page report congressional report, obtained by FOX News, includes intelligence from law enforcement as well as New York State’s Department of Taxation and Finance.

The report reads in part: Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

“This is a very serious homeland security issue, one that has gone unnoticed for far too long,” said Rep. Peter King, (R-N.Y.), the ranking member of the House Homeland Security Committee, who called for the investigation.

“Cigarette smugglers are able to generate millions of dollars in illegal profits with a great deal of this wealth being sent to terrorist groups overseas – groups that would like nothing more than to inflict devastating harm on our country and its citizens.”

...

This only works because the states have placed a tax on cigarettes that makes it attractive to buy them where the tax is lower and sell in high tax states without paying the taxes. One of the places they can buy them without tax is at Indian reservations. The people doing this are making about $300,000 a week in New York City alone.

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