Politicians Make Bootlegging Great Again

[EasyAce]

By J.D. Tuccile
http://reason.com/archives/2017/01/17/politicians-make-bootlegging-great-again/print

When Prohibition ended in 1933, my great-grandfather, Giuseppe Marano, thought his money-making glory days were
over. Having made a good living selling alcoholic beverages to willing buyers at a time when that business was illegal across the
country, he and his cohorts certainly viewed the passage of the 21st Amendment as the end of a very profitable era.

Except that it really wasn't. Politicians may have formally dumped the national ban on booze, but in many places they've imposed
enough foolish restrictions to keep bootlegging a going concern.

On the first day of this year, it became a class 4 felony in Illinois—up from a business offense carrying a fine—to import 45 liters
or more of liquor into the state without a license. The same minimum one-year prison sentence applies to bringing in more than
108 liters of wine or 118 liters of beer without government paperwork.

The law passed as a nudge-and-wink scheme between politicians who resent the loss of tax revenue when beverages are brought
in across the state line, and local liquor distributors who bristle when out of state competitors elbow in on their action.

"Many out-of-state businesses are not compliant with Illinois tax laws, which undercuts Illinois businesses, depriving our state of
money that could be going toward improving our schools, roads and social services," Karin Lijana Matura, executive director of
Wine and Spirits Distributors of Illinois, an industry trade group, told WQAD.

The legislation came in response to a thriving illegal cross-border trade as Illinois residents place orders with businesses—many
in Indiana—for liquor, wine, and beer unavailable or just extremely pricey through their state's tightly regulated and protected
cartel.

"Alcohol is much more expensive in Illinois than it is in Indiana," reported a Chicago ABC affiliate in 2015. "And it is even pricier
in Cook County, where the tax rate on liquor is more than five times higher than it is in the Hoosier state." The result is that "a
six-bottle case of vodka that costs $167 in Indiana costs $226 in Illinois and is $18 more than that in Cook County."

Indeed, Illinois taxed distilled spirits at $8.55 per gallon, compared to the $2.68 imposed by Indiana, according to the Tax
Foundation. Taxes are also lower in neighboring Missouri and Wisconsin. The Illinois Policy Institute notes that Cook County adds
another $2.50 per gallon to the price of a bottle of cheer, and Chicago tags on an extra $2.68 per gallon.

Wine is taxed at $1.39 per gallon, a tad higher than the $0.25 rate in Wisconsin. Beer isn't leaned on quite so heavily by the tax
man, but Illinois still imposes a higher rate than most of its neighbors at $0.23 per gallon, compared to $0.12 in Indiana, and
$0.06 in Missouri and Wisconsin.

And that's assuming you can even find the beverage of your choice to have an opportunity to balk at the price. Chicago "is one
of the last contested territories for the nation's two beer giants…which wage a proxy war through licensed distributors" and squeeze
out small competitors, Crain's Chicago Business pointed out a few years ago. Federal and state law makes it difficult for small
players to bypass established distributors.

So opposition to the new Illinois law found fertile ground among consumers with tastes that couldn't be satisfied locally, "particularly
from residents who purchased hard-to-find wine from out-of-state retailers," according to the Chicago Tribune. "Other states allow
out-of-state retailers to obtain a direct shipping license, providing both oversight and valuable tax revenue. We think this is the
right approach for Illinois—creating competition, consumer choice, and revenue to help balance our state's budget," their petition
said. All they wanted was a chance to legally place orders online with businesses that carry their drinks of choice and have the
goods shipped to their homes. But they lost, and the tax man and distribution cartel got their pet bill signed into law.

It's not as if Illinois officials are alone in favoring tax revenues and established local businesses over the value of leaving people
free to make their own choices. This year, Michigan adopted a law allowing state retailers to ship wine directly to customers—but
barring businesses based outside the state from serving the same market. That's a direct blow not just to retailers who don't have
local politicians in their pockets, but also to consumers who want to take advantage of the boom in online vendors and wine clubs
of recent years.

And the motivation is no mystery.

"We applaud the House for approving this legislation, which will provide the state with additional tools to crack down on illegal
wine shipments into our state," the president of the Michigan Beer and Wine Wholesalers Association crowed.

"It sounds like it's going to shut down some of these mail order wine clubs, which if those people can't get their wine through
those streams anymore they'll have to come to places like this," the general manager of a Traverse City retail operation told
9&10 News.

Unshockingly, Michigan has generally higher taxes—$11.94 per gallon of distilled spirits, $0.51 per gallon of wine, and $0.20
per gallon of beer—than its neighbors. The state also imposes an alcohol regulatory regime that the Mackinac Center for Public
Policy calls "problematic, because it is designed to unjustly enrich a few beer and wine wholesalers at the expense of consumers
everywhere. Indeed, parts of the state liquor code read as if it were written specifically for the benefit of wholesaler business
interests."

With high prices essentially mandated by law, Michigan has long enjoyed a healthy, if officially unsanctioned, cross-border
trade in alcoholic beverages.

"Conservatively, illegal importation of alcohol into Michigan strips the State of at least $14 million each year," the Michigan
Liquor Control Commission estimated in 2007. The Commission fingered Indiana and Wisconsin as major sources of smuggled
alcohol—both states, it should be noted, with lower tax rates on all sorts of adult beverages.

Foreshadowing Illinois's transformation of a business offense into a felony ten years later, the Michigan report recommended
increased enforcement and penalties as the response to state residents seeking to avoid repeated muggings by government
officials and their cronies. Why correct your own foolish errors when you can lash out at people for responding rationally and
predictably to the incentives you've created?

Giuseppe Marano had his day. But if he were still around, he would recognize a glorious business opportunity when he saw
it in the legal, but heavily taxed and regulated modern booze market.

But it's not like that market is going unserved. My great-grandfather may be gone, but there are plenty of modern bootleggers
profiting from the opportunities that politicians have handed them.

The Michigan and Illinois laws remind me of then-New York Gov. Mario Cuomo's attempt to put the brakes on New Yorkers
who lived along state borders (I was one of them at the time) traveling into neighbouring states to shop for assorted goods
where the sales taxes were far, far lower than in New York. Cuomo's brilliant idea: he was ready to sic the state tax men
on those shoppers and assess them for the difference, to make them pay the tax they'd have paid in New York on those
goods. It was a petty and foolish move, and it helped cost Cuomo the governor's mansion at last.

[Smokin Joe]

Such disparities in taxes breed black markets. I recall as a child semi loads of unstamped cigarettes getting pulled over on on US 301 on their way to New York from the Carolinas. In those days a carton (10 packs) of smokes could be bought for a couple of bucks in North Carolina, and were worth three times that in New York...because of the taxes.

[roamer_1]

Such disparities in taxes breed black markets. I recall as a child semi loads of unstamped cigarettes getting pulled over on on US 301 on their way to New York from the Carolinas. In those days a carton (10 packs) of smokes could be bought for a couple of bucks in North Carolina, and were worth three times that in New York...because of the taxes.

Similar to here, where tobacco comes untaxed across the Canadian border, as does black label whiskey... And I can go a couple miles west of town and wind up with a quart of the finest shine there is. Bootlegging ain't making a return. It never left.

[Smokin Joe]

Similar to here, where tobacco comes untaxed across the Canadian border, as does black label whiskey... And I can go a couple miles west of town and wind up with a quart of the finest shine there is. Bootlegging ain't making a return. It never left.

In a sense, it expanded. Watch "Cops" or something like it, and see how much stuff comes out of socks and hip pockets...only it isn't just alcohol and tobacco any more.

[roamer_1]

In a sense, it expanded. Watch "Cops" or something like it, and see how much stuff comes out of socks and hip pockets...only it isn't just alcohol and tobacco any more.

Oh, I know all about it - My boy is a cop... which is weird, btw... I've ridden in a lot of squad cars in my day, but never up in front, if you get my drift.

I thought about putting a car together and getting back in the business - As gimped up as I am, it is a pretty tempting thing... But, that squad car... him in the front, me in the back... well, let's just say that ought to be avoided (if at all possible). 

[Smokin Joe]

Oh, I know all about it - My boy is a cop... which is weird, btw... I've ridden in a lot of squad cars in my day, but never up in front, if you get my drift.

I thought about putting a car together and getting back in the business - As gimped up as I am, it is a pretty tempting thing... But, that squad car... him in the front, me in the back... well, let's just say that ought to be avoided (if at all possible). 

I have made a habit of staying out of the back of those things. I was at a 'situation' that developed a while back, and they came along and just handcuffed everyone there and sorted things out. I just looked at the lady cop there and said "I'm 59 years old, and this is the first time I have been handcuffed that it wasn't consensual." She just laughed, but I was out of the cuffs in no time...

[roamer_1]

I have made a habit of staying out of the back of those things. I was at a 'situation' that developed a while back, and they came along and just handcuffed everyone there and sorted things out. I just looked at the lady cop there and said "I'm 59 years old, and this is the first time I have been handcuffed that it wasn't consensual." She just laughed, but I was out of the cuffs in no time...

A product of my misspent yoot - At the time, I knew every judge in town by name, and being in handcuffs - though not a weekly occurrence - was not an uncommon thing. From 25-35 years, it was far less common, to the point of being occasional... And since then, I've only been in cuffs twice.  Once for beating down two kids I caught breaking into my truck, and once for thumping a kid who was trying to rob me at knife-point (cane beats knife, bad move on his part). Both of those, like most of the time, were self-defense, though my exuberance in the enforcement of that defense raised questions that were fit for a judge I'd guess..

Most all of it was for knockin' heads and damage to property during such events... And once I was on the other side of those deals, bouncing for the very same establishments, not a few assault and illegal use of force type of things, all of which (including suits stemming from) got pitched eventually... Oddly enough, I am a peaceful sort. I don't exactly like to fight, but I can only back up so far.

I've got more than my share of felony evading, reckless, competition, and the sort of things you get being a driver. Those are cuff-and-stuff, and wait the weekend to see the judge, and then try to bail out your car...

Also a couple B&E's (thrown out), a couple of GTA's (thrown out),  some receiving stolen goods (plead down, not my fault, didn't know). All of that springs from buy/sell deals on the street - I never have taken what ain't mine, and wouldn't ever intend to. But when you operate on the street, one will run into hot stuff unknowingly, from time to time, and it is hard to prove that distinction.

You never lose that wild-child thing. My first reaction to red/blue in the rear-view is still to punch it to the floor (as Skynyrd starts playing in my head - heh, turn that sh*t up)... But I like to think it's wisdom that makes me think twice anymore... Though it might be that I am just too wore out to play those games. 

[Smokin Joe]

A product of my misspent yoot - At the time, I knew every judge in town by name, and being in handcuffs - though not a weekly occurrence - was not an uncommon thing. From 25-35 years, it was far less common, to the point of being occasional... And since then, I've only been in cuffs twice.  Once for beating down two kids I caught breaking into my truck, and once for thumping a kid who was trying to rob me at knife-point (cane beats knife, bad move on his part). Both of those, like most of the time, were self-defense, though my exuberance in the enforcement of that defense raised questions that were fit for a judge I'd guess..

Most all of it was for knockin' heads and damage to property during such events... And once I was on the other side of those deals, bouncing for the very same establishments, not a few assault and illegal use of force type of things, all of which (including suits stemming from) got pitched eventually... Oddly enough, I am a peaceful sort. I don't exactly like to fight, but I can only back up so far.

I've got more than my share of felony evading, reckless, competition, and the sort of things you get being a driver. Those are cuff-and-stuff, and wait the weekend to see the judge, and then try to bail out your car...

Also a couple B&E's (thrown out), a couple of GTA's (thrown out),  some receiving stolen goods (plead down, not my fault, didn't know). All of that springs from buy/sell deals on the street - I never have taken what ain't mine, and wouldn't ever intend to. But when you operate on the street, one will run into hot stuff unknowingly, from time to time, and it is hard to prove that distinction.

You never lose that wild-child thing. My first reaction to red/blue in the rear-view is still to punch it to the floor (as Skynyrd starts playing in my head - heh, turn that sh*t up)... But I like to think it's wisdom that makes me think twice anymore... Though it might be that I am just too wore out to play those games. 

To my knowledge I never handled anything 'hot', even though I did get a few decent deals. Never had any trouble over them, though. I got my outrunning out of my system pretty young, as I was a fireman, too--you can only peel a car off so many friends before you settle down a mite and realize you've been lucky to outwit (not out run) the radio. When my folks gave me a knowing look and described a vehicle the Man was seeking in another part of the county, it was time to quit. I still drove like a bootlegger, just managed to not get caught, so I didn't have to outrun anyone. When they popped the lights, I stopped, was polite, and even joked with them, so I ended up with more warnings than tickets.

I did a bit of bouncing, but the guys I dealt with weren't the type to whine. If they had a knot or two coming, they handled it. Never got sued.

I still get a case of leadfoot listening to Deep Purple (Hush), CCR, Steppenwolf, and a few other's tunes, but I let the cruise control do most of the pedal on long trips, and manage to maintain when I'm in town. It helps a lot to have plenty of open space and an instinct about radar.

The other stunt I used to pull, back when everyone waved when you passed going opposite directions, was to hit the binders and wave at the cop, then come off the brakes just as he went by. By the time he looked at the radar unit, I was slower, he didn't see brake lights, and I was gone the other way anyhow... and I tried to keep the speed under 20 over, which isn't a hanging offense here like Ohio or places back East.

For a while, Montana had "reasonable and prudent", which meant you could go 80-85 all day if the roads were dry in the daytime. Some lawyer took a Lambo through a herd of vacationing runamuckas on the interstate doing well over a hundred and then whined that "reasonable and prudent" was "unconstitutionally vague" when he got written up for it. That messed that up.

Before "reasonable and prudent" the fine was 5 bucks up to 15 over for "careless use of a natural resource"(gasoline) and it didn't show up on your driving record. Never got a DUI, and quit drinking 'bout 30 years ago, so that isn't a problem, either.

I figured out being calm, respectful, and even jovial got you farther than getting all hyped up, and if they didn't write it up, it didn't happen. So the trick was to not get written up, and for some reason, I rarely did for anything. I knew the judges, too--and even drank with a couple of them back when, but if it didn't end up in front of them, it never got to be a problem.It wasn't so much what I did or didn't, it was what I didn't get caught for. And like you, never took anything that wasn't mine, and I didn't break it if I didn't own it, so I got by okay.

[roamer_1]

To my knowledge I never handled anything 'hot', even though I did get a few decent deals. Never had any trouble over them, though. I got my outrunning out of my system pretty young, as I was a fireman, too--you can only peel a car off so many friends before you settle down a mite and realize you've been lucky to outwit (not out run) the radio.

Yeah, I drove tow truck for a while, so I know about it. At the time I was considerably more bullet-proof than I am today... Dunno where that went.

When my folks gave me a knowing look and described a vehicle the Man was seeking in another part of the county, it was time to quit. I still drove like a bootlegger, just managed to not get caught, so I didn't have to outrun anyone. When they popped the lights, I stopped, was polite, and even joked with them, so I ended up with more warnings than tickets.

But you see, that's my bag. There ain't nothing I like better than a roarin Chevy, a gravel road, and cops on my tail. That is where I am in my element. That's my zone. Some folks like hoppin lights, some folks do quarter mile... That's all fine, but that whiskey-runner thing just lights me right up. And I'm really, REALLY good at it.

It is my unfortunate lot in life that driving like that is a talent only useful in illegal activities.  If there was a way to get paid to do that legally, I would be doing it yet.

But finally, the judge made me sell my car and join the military, which all happened, except that I 4F'd out of service... But I ain't had a tough car since... Switched over to 4x4, and got married shortly thereafter, and had to quit the game altogether for lack of funds. 4 kids will do that to ya. Had a bit of a renaissance in my early forties, with a jacked up, ground-pounding, bad ass 4x4, prettiest thing I ever owned, but for the most part, moderated (sigh).

It helps a lot to have plenty of open space and an instinct about radar.

Yep. Two turns in town - If you ain't away by then, you're busted. And out of town, know the side roads, and go to gravel right away. No one ever outruns a radio.

For a while, Montana had "reasonable and prudent", which meant you could go 80-85 all day if the roads were dry in the daytime.

Still do - The cops around here don;t pay mind to fairly high speeds if you are away from town. I have never got a ticket on the highway in MT.

I figured out being calm, respectful, and even jovial got you farther than getting all hyped up, and if they didn't write it up, it didn't happen. So the trick was to not get written up, and for some reason, I rarely did for anything.

Yep... I was usually pretty pleasant to deal with, and so were they. Just doing business. There ain't no percentage in fighting it once you're caught - And it ain't just that you won't win... They can make your stay at county a livin hell if you are rough on them. And assaulting a peace officer would double whatever time was on the table, and with my intention being to take time OFF the table, it just isn't productive.

I generally had a good time with the cops and judges - and even the detention guys. A lot of it is that, like you, I seldom was intoxicated, never any drugs, and never a DUI...Just kickin up my heels a bit, and they knew it.