RI Black Market Tobacco Sales Rampant, Among Worst in Nation
Monday, December 23, 2013
That analysis comes from the Mackinac Center for Public Policy, a nonpartisan research group that draws a direct correlation between tobacco taxes and the drug's illicit distribution.
Black Market Cigarettes in New England
Scholars at Michigan's Mackinac Center for Public Policy have analyzed tobacco sales data to estimate smuggling rates for each state.
The report uses 2011 data and finds that smuggling rates generally rise in states after they adopt large cigarette tax increases. Smuggling rates have dropped in some states, however, often where neighboring states have higher cigarette tax rates.
This means that people are buying cigarettes in lower-taxed states legally, and bringing them into nearby higher-taxed states to sell at a lower price with higher profits.
See which New England states have the highest percentage of smuggled cigarettes in the slides below:
Source: Mackinac Center for Public Policy; Tax Foundation.
- RI Black Market Tobacco Sales Rampant, Among Worst in Nation
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