“More than 60 percent of cigarettes smoked in New York State, which has the highest tobacco taxes in the nation, are smuggled in from out of state and consumed tax free. New York raised its excise tax by 58% from $2.75 a pack to $4.35 in 2010, but it resulted in only a 20% increase in revenue. It’s is really good to know this underground network is in action. In addition to smokers being provided tax free cigarettes, the black market that is developing in NYS is creating a network of trusted suppliers and customers that can be operational against further government interventions that may take place down the road.”
http://www.economicpolicyjournal.com/2013/01/new-york-state-black-market-in.html
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