LaFaive Proven Right on Cigarette Tax Hike

Mass. losing millions due to smuggling

A Boston Herald editorial on a $1 per pack tax hike on cigarettes in Massachusetts cites Michael LaFaive, director of the Morey Fiscal Policy Initiative, who warned that an increase would lead to more tobacco smuggling and less state revenue.

The editorial references an interview LaFaive did with WBUR last year, indicating that the tax hike would cause the cigarette smuggling rate in Massachusetts to more than double from 18 percent to 43 percent. The state is now reporting that it is losing up to $246 million a year in cigarette taxes and $49 million a year in sales tax due to cigarette smuggling.

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