The citizens of Michigan who reside in the urban sprawl of Detroit are waking up to the brave new world of Stealth Cartel partnerships between their elected officials, and their government’s comrades in collusion, Big Business. For this and other related articles – visit the StatesOnTheTake.com Law and Business Library.

This time, the Stealth Cartel is the first ever (but by no means last) proposed tax on “fast food” for the city of Detroit. The city’s mayor, Kwame Kilpatrick, citing the city’s extreme financial situation, has asked voters to approve a 2% tax on “fast food” restaurants only – on top of the already 6% state sales tax on all restaurant meals. Continue Reading »

Scott Woolley of Forbes does what few in the media have so succinctly done before; explain “Exhibit A” of the Stealth Cartel Partnerships, the 46 states government/Big Tobacco “Master Settlement Agreement” (“MSA”) – [read Master Partnership Agreement].

“This may be one of the most successful cartels ever,” that the opinion of Judge Dennis Jacobs, of the Second Circuit Court of Appeals in New York. In his February 2005 article “Trustbuster”, Woolley reports the opinions of esteemed justices such as Jacobs and others, as well as a renown antitrust attorney, David Dobbins, who declares that in his 50 years as a lawyer he has never seen a cartel so brazen: “If you’re an experienced antitrust lawyer [the MSA] just blows your mind.” Continue Reading »

The concept of allocable share release (ASR), designed to make the MSA payments required of small companies, on a state-by-state basis, to be the same as major companies, is not easy to explain. It has proved much easier to misrepresent this provision of the MSA in the 39 states that have repealed ASR.

Attempting to maintain the price cartel the MSA effectively established for them, major cigarette manufacturers:
➢ misrepresent ASR as an unintended loophole.
➢ portray ASR as a tax program rather than a legal settlement.
➢ demagogue companies that get an ASR as “cheap cigarettes makers who sell their products to kids” even though over 90% of underage smokers acquire brands manufactured by the majors. Continue Reading »