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It's possible, Fleenor said, that online merchants actually
make it harder for bootleggers to flourish, since the Internet allows smokers to
comparison shop for discount, tax-free cigarettes.
Still,
there's a good reason why the growth of online cigarette sales is making state
tax collectors antsy. A recent report published by the U.S. General Accounting
Office, cited by Kohl, predicted states will lose about $1.5 billion in tax
revenues by 2005 if Internet tobacco sales continue at current
levels.
Currently,
online cigarette merchants are supposed to adhere to the Jenkins Act, a law
passed in 1949 that requires anyone who sells cigarettes across a state line to
an individual or unlicensed distributor to report the transaction to the state's
tobacco tax administrator.
To
help states get their taxes, the Senate bill would strengthen reporting
requirements for interstate cigarette sellers and raise the crime of not
reporting to a felony. It also would lower the number of cigarettes to be
treated as contraband from 60,000 to 10,000.
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Government has moved on course to meet its short-term target for reducing child
poverty. New projections for the Joseph Rowntree Foundation suggest that around
one million children will have been taken out of poverty by the spring of 2004
compared with 1997. But while the Government may just succeed in reaching its
first milestone of reducing child poverty by a quarter by 2004, achieving its
longer-term targets of halving poverty by 2010, and eradicating it 'within a
generation', will be more difficult to achieve.
Researchers at the
University of Cambridge and the London School of Economics find that relative
poverty - measured as households with less than 60 per cent of the national
mid-point income - fell by around one million between 1996/7 and 2000/1,
including half a million children. This was largely due to increasing levels of
employment and above-inflation increase in some benefits, especially those for
families with children. Policy modeling - taking account of more recent tax and
benefit changes including the introduction of child tax credits - shows that the
Government's policies would remove 1.3 million children from poverty by April
2004, other things being equal. However, the overall national increase in
incomes since 1997 has served to raise the poverty threshold, with the result
that the actual reduction in child poverty is likely to be around one million.
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The
researchers estimate that the number of children in poor households will be one
third below its 1997 level by 2004 before housing costs are taken into account,
and a quarter lower after housing costs are deducted. This means that the
Government should meet its short-term target, unless other factors, such as
employment, take a turn for the worse.
The
study also anticipates a significant fall in poverty among pensioners between
1997 and 2003/4. However, the assessment of how many older people have been
taken out of poverty depends heavily on which income measurement is used.
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