Last summer Eric Garner died after a New York cop put him in a chokehold. His crime was selling “loosies”, or untaxed cigarettes. Smuggling is common in New York: 58% of cigarettes smoked in the state are contraband. The reason is that tobacco taxes are high: a pack of 20 costs $13 in New York, compared with $5 in Missouri, the state with the cheapest gaspers. A recent report found that illicit smokes are more than 20% of total consumption in 15 states. There are sound public-health reasons for taxing tobacco but as the map shows, the higher the taxes, the bigger the black market.
from The Economist: United States http://ift.tt/1KNT8w3
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