According to a new study by the Tax Foundation, over 60 percent of cigarettes sold in New York are smuggled in from lower tax states, the highest rate in the country. Increasing excise taxes on cigarettes has created lucrative incentives for black market trafficking between states.
Public policies often have unintended consequences that may outweigh their benefits. Dramatic increases in state cigarette taxes have yielded additional revenue for priorities like public health, but have also fueled the rise of organized crime and law enforcement corruption.