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Michigan Could Soon See an Increased Cigarette Smuggling Rate

Raising taxes and banning products could make the state a top destination for illicit smokes

… Michigan’s cigarettes may be smuggled in from other states if a … consumed in Michigan are smuggled into the state, according … remains America’s number one smuggling state. California had the second highest smuggling rate at 46.7%, followed by … very ones with the highest smuggling rates,” said Todd Nesbit, …

Governments Light Up Cigarette Smuggling

A tax hike will make cigarette smuggling even more lucrative

… 19%, to be precise — were smuggled from another taxing jurisdiction. … enough to inspire significant smuggling as it is. We also estimate … Carolina. We separate types of smuggling into two categories: casual and commercial. Casual smuggling usually involves individuals … home. Of Michigan’s total smuggling rate, about 11 percentage …

Proposed tax hike and flavor prohibition recipe for lawlessness

Michigan could soon have the fourth-highest smuggling rate in the nation

… degree to which cigarettes are smuggled in and out of the Great Lake … products is enacted. Such a smuggling rate would be nearly 6 percentage … more from consumers. Absent smuggling, the state’s tax haul would … sold legally represents our smuggling rate. We also adjust for … as America’s number one smuggling state, at 54.3%. That is, …

Updated Research Affirms Link between Cigarette Taxes and Smuggling

Interactive map shows taxes and smuggling by state

… between states and cigarette smuggling. Using data from 2015 — … Foundation estimate the cigarette smuggling rates for 47 of the 48 contiguous … their goals undermined by smuggling and associated crime that … Washington, D.C., estimate smuggling rates by comparing the legal … the two is explained by smuggling, either commercial or casual. …

New Data on Cigarette Smuggling Released

New York still the top smuggling state, Michigan ranked 15th

… that can be attributed to smuggling. Using data from 2018, the … to have the top in-bound smuggling rate in the nation, with … of all cigarettes consumed smuggled in from elsewhere. California … leapt from the 18th highest smuggling rate in the nation to eighth … in the nation, with a net smuggling rate just below 20%. That …

Oregon Cigarette Tax Hike Proposal Would Invite Raft of Trouble

Higher taxes invite problems such as smuggling

… avoidance (what we call smuggling) rates in most states around … According to our model, Oregon’s smuggling rate in 2018 was a very modest … year were the result of smuggling. Oregon’s smuggling rate was the 27th highest … use the model to estimate smuggling rates but can also run “what-if” …

Governments Light Up Cigarette Smuggling

… 19%, to be precise — were smuggled from another taxing jurisdiction. … enough to inspire significant smuggling as it is. We also estimate … Carolina. We separate types of smuggling into two categories: casual and commercial. Casual smuggling usually involves individuals … home. Of Michigan’s total smuggling rate, about 11 percentage …

High Cigarette Taxes Lead to More Smuggling

Study provides new estimates of smuggling rates for each state

… degree to which cigarettes are smuggled across state borders within … authors estimated total smuggling rates by comparing the published … the two is attributed to smuggling. “It’s important for policymakers … lead to increased rates of smuggling,” said study coauthor, Michael … in Michigan. “Cigarette smuggling is often associated with …

LaFaive Proven Right on Cigarette Tax Hike

Mass. losing millions due to smuggling

… that an increase would lead to more tobacco smuggling and less state revenue. The editorial references … that the tax hike would cause the cigarette smuggling rate in Massachusetts to more than double from … million a year in sales tax due to cigarette smuggling.

Updated Research Quantifies Relationship Between Cigarette Taxes and Smuggling

New York has highest smuggling rate; Michigan ranks 14th

… consumption attributable to smuggling. Cigarettes have an excise … typically have higher rates of smuggling. When neighboring states … individuals and organized groups to smuggle cigarettes across state lines. The smuggling rates are estimated using … continued to be the top in-bound smuggling state in the nation. Nearly …

Tax Evasion and Avoidance: Michigan Ranks 14th in Cigarette Smuggling

Latest data shows the relationship between cigarette taxes and smuggling

… avoidance (what we call “smuggling”). Over time many states … syndicates, respectively. Smuggling is not the only unintended … 2017 nearly 21 percent were smuggled. That figure may leap upward … that the Golden State’s smuggling rate has increased to 44.6 percent … California the topped rank smuggling states are Washington (42.8 percent), …

Will This Year Smoke Out Cigarette Tax Hikes?

Prohibitions and high excise tax rates lead to increases in smuggling

… and prison sentences for smuggling cigarettes and other contraband … taxes encourage more illegal smuggling into a state, and if law … is little hope of keeping smuggled ones out of the hands of … alcohol — it leads to rampant smuggling and other harmful unintended … and California as the top smuggling states. Vying for third place …

LaFaive and Nesbit Op-ed Published in Lincoln Journal Star

Raising cigarette taxes would increase smuggling

… Cornhusker State, a proposal introduced by Sen. Mike Gloor. While Nebraska’s smuggling rate is quite low — 2.8 percent in 2013 — raising per-pack taxes from 64 cents to $2.14 would increase the smuggling rate to 32.3 percent, according to the analysis provided by LaFaive and …

Updated Research Highlights Impact of Cigarette Tax Evasion

New York still an empire of smuggled smokes as Nevada leaps towards the top

… consumption attributable to smuggling. Higher rates of smuggling are typically due to higher … available — to estimate smuggling rates across the country. … remained the top in-bound smuggling state in the nation, with … consumed cigarettes being smuggled in from elsewhere. The state’s …

Center Research in Time, Washington Post

Tobacco smuggling stats a national story

Research on the relationship between cigarette smuggling and tobacco excise taxes by Mackinac Center scholars was cited recently by Time, CBS News and The Washington Post. The research was also the focus of this New York Post editorial and was featured on Northwest Public Radio and in Bloomberg and the …

Center Research Cited in Washington Post

New cigarette smuggling study released

New research by Mackinac Center experts on the effect of high tobacco excise taxes on cigarette smuggling rates is featured in The Washington Post. The study was also cited by WLUC TV-6 in Negaunee, WWMT-TV3 in Kalamazoo, WKZO AM-590 in Kalamazoo and WSJM FM-94.9 in Benton Harbor, as well as Hot Air. …

Analysis: Michigan’s Cigarette Smuggling Rate Falls Slightly; State Still in Top 10 Nationally

More than 27 percent of Michigan’s total cigarette consumption in 2012 was smuggled into the state, according to Center study

… estimates for cigarette smuggling rates in 47 of the 48 contiguous … however, the 10th highest smuggling rate in the nation. “As … who are only too happy to smuggle them for profit.” This is the fourth set of smuggling rate estimates published … Michigan, another 27 are smuggled in. “Excise taxes do change …

LaFaive's Minnesota Senate Tax Committee Testimony

Fiscal policy expert shows analysis of cigarette taxes and smuggling

… studies on cigarette taxes and smuggling. My colleague, Dr. Todd Nesbit … degree to which cigarettes are smuggled in the United States. It … believe it is explained by smuggling. Through calendar year 2013 … estimated that Minnesota’s total smuggling rate was almost 18 percent. … currently has the 16th highest smuggling rate in our most recent study. …

LaFaive in National Media

Mackinac Center experts' analysis on cigarette smuggling cited in national reports

… excise taxes on cigarettes lead to counterfeit products and tax stamps; smuggling; violence against police, people and property; and other unintended consequences. … include cutting taxes or improving police tactics or both to reduce the smuggling problem. LaFaive is director of the Morey Fiscal Policy Initiative.

Cigarette Smuggling May Leap with National Menthol Ban

Nearly 20% of Michigan consumption due to tax evasion

… consumed in New York state were smuggled into the state, according … report provides cigarette smuggling estimates for 47 contiguous … the number one state for smuggled cigarettes. Nearly 54% all … consumed in the state were smuggled in as a function of tax evasion … Michigan ranked 15th, with a smuggling rate of 20%. “Increased …

Center Research Cited in Five Hearst Papers

Higher cigarette taxes lead to more smuggling

… increasing tobacco taxes also increases cigarette smuggling is featured in a story that ran in multiple Hearst … pack, ranks 14th in the country for cigarette smuggling. Just over 22 percent of cigarettes consumed in the Nutmeg State in 2011 were smuggled, a 10 percent increase over the Center’s 2009 …

Smuggled Smokes: California Closes in on New York

… avoidance (what we dub “smuggling”) and other unintended consequences … of states with the most smuggling to take the No. 2 position … taxes to reduce interstate smuggling. Cigarette excise tax rates … obvious profit opportunity in smuggling. Local cigarette excise taxes … revenue stream and increased smuggling. Punitive taxes in high-tax …

Cigarette Taxes and Smuggling

A Statistical Analysis and Historical Review

… n this study, the authors consider cigarette smuggling from two angles. First, they employ a statistical model to estimate the degree to which cigarette smuggling occurs in 47 of the 48 contiguous U.S. states. … California — known to have problems with cigarette smuggling. The author's findings suggest that state policymakers …

Analysis: High Cigarette Taxes Contributing to Increased Smuggling Rates in Michigan, Elsewhere

More than 29 percent of Michigan’s total cigarette consumption in 2011 was smuggled into the state, according to Center analysts

… estimates for cigarette smuggling rates in 47 of the 48 contiguous … Michigan has the 10th highest smuggling rate in the nation. “People … This is the third set of smuggling rate estimates published … contained detailed histories of smuggling in Michigan and other states. … country, so too has rampant smuggling. The top smuggling rates …

Has the first tax hike of 2024 just dropped?

Tobacco tax bill would take nearly $400 million and give a boost to smuggling

… expected increase in cigarette smuggling. This proposal will hurt … avoidance, what we call “smuggling.” We published a statistical … degree to which cigarettes are smuggled around the country, as well … a function of cigarette smuggling. We estimate that, if the … adopted, Michigan’s cigarette smuggling rate would leap to 30.6%. …

Where There's Cigarette Taxes, There's Smuggling

… update to their 2008 study "Cigarette Taxes and Smuggling," Michael LaFaive and Todd Nesbit show the strong correlation between high cigarette taxes and smuggling, theft and other violent crimes. (Note: The … North Carolina as the basic source state for smuggled cigarettes.) ##### Kathy Hoekstra is a communications …

Mackinac Cigarette Smuggling Study Inspires State Action — in New York

A study of cigarette smuggling performed by Center analysts … with fighting cigarette smuggling in the Empire State. The … state-by-state cigarette smuggling rates. The Center’s study … New York as the number one smuggling state in the nation. We estimated … untaxed. That is, they were smuggled in from elsewhere. The Mackinac …

Automatic Tax Increases are Not Good Policy

Letter: Continued cigarette tax policy will increase smuggling from other states

… cigarette tax hike. Lastly, we estimated the smuggling rate differences in Minnesota with an excise … $2.90. Raising the tax by 7 cents hiked the state smuggling rate by 0.8 percentage points. If that becomes … annual average Minnesota will remain a top five smuggling state and for little in the way of gains to public …

Canary in a cigarette-smuggling coal mine

Arbitrageurs smell sweet opportunities after Massachusetts bans menthol smokes

… the degree to which cigarettes are smuggled, by state, including those exported … may dramatically hike cigarette smuggling. Our most recent estimates indicate … model we find that Massachusetts smuggling leaps to 38 percent of the market, … 2019. Without the ban the state’s smuggling rate would be much lower. Continued …

Criticism of Center Smuggling Scholarship Unfounded

Cherry-picked language paints a different picture

… referenced our cigarette smuggling research. Nearly four years … scholarship on cigarette taxes and smuggling, and we have cited their … some cases, it understates smuggling on the other. If we were … why would we understate smuggling? We can only speculate, but … have a bias for overselling smuggling. The 2015 report, published …

Higher Excise Taxes Lead to More Interstate Smuggling

A national ban would be harmful, statewide data suggests

… as a result of cigarette smuggling, according to new data released … in the Empire State were smuggled. New York continues to have … highest inbound cigarette smuggling rate in the nation. The … estimate of state cigarette smuggling across the continental United … the second-highest inbound smuggling rate (44%) and New Mexico …

Cigarette Tax Hike of 75 Percent Will Create Great Lake of Smuggled Smokes

Raising the state’s tobacco tax will send smokers to out-of-state sources for cigarettes

… believe most of it can be laid at the foot of smuggling. Some tax evasion will be casual, in the form … not the only scholars to identify cigarette smuggling as a large problem, especially in high-taxed … smoking rate by about five percent. Remarkably, smuggling isn’t the only major consequence of these higher …

Maine Cigarette Tax Hike Would Enrich Smugglers

There are better methods to reduce smoking

… cigarettes leads to more smuggling, which may undermine the … simplicity, we call these actions “smuggling.” As it turns out, people … represents the state’s total smuggling rate. In 2018, Maine’s was … 8%, with 5.4 million packs smuggled. That would change dramatically … and it shows that Maine’s smuggling rate would leap to 25%. That …

Cigarette Smuggling Undermines Tax Revenue

Michigan lost $350 million in 2012

… published estimates of cigarette smuggling in 47 of the 48 contiguous … in-state consumption was smuggled. In New York, almost 57 percent … we made for 2012. In the "smuggling rate" column a positive percentage … additional 7.7 packs are smuggled out. By contrast, the Arkansas … in the Razorback state are smuggled in. The last column indicates …

West Virginia Excise Tax Hike Proposal Invites Smugglers

How Raising Cigarette Taxes Could Increase More Than Revenue

… it the amount of illicit smuggling of cigarettes to the Mountain … degree to which cigarettes are smuggled from state to state since … activity counts as illicit smuggling, though those transactions … cigarettes consumed there were smuggled out to other states. That … left the state. A casual smuggler is typically an individual …

Center Research on Cigarette Smuggling Cited

LaFaive, Nesbit analysis in Pacific Standard magazine

… Director Michael LaFaive and Adjunct Scholar Todd Nesbit on cigarette smuggling was recently cited in Pacific Standard. The magazine cites in particular their finding that the state of New York has the highest cigarette smuggling rate in the nation, and has increased some 70 percent since 2006 due to …

Tobacco Smuggling and Taxes

An Op-Ed in the Belleville News Democrat co-written by Fiscal Policy Director Mike LaFaive shows that cigarette smuggling in Illinois will increase if a proposed hike in tobacco taxes there is approved. The information is based on this research by LaFaive and other Mackinac Center analysts.

Study: High Cigarette Taxes Cause Widespread Smuggling in Michigan, Elsewhere in U.S.

Smuggled imports make up an estimated 26 percent of Michigan’s total cigarette consumption in 2009

… igan’s inbound cigarette smuggling rate was 10th highest in … Center’s 2008 cigarette tax and smuggling study, which likewise provided estimated smuggling rates for 47 of the 48 contiguous states. Michigan’s smuggling rate, which was measured … rate of casual cross-border smuggling by its residents. “Lansing’s …

Study: High Cigarette Taxes Cause Widespread Smuggling in Michigan, Elsewhere in U.S.

Smuggled imports make up an estimated 26 percent of Michigan’s total cigarette consumption in 2009

… Michigan’s inbound cigarette smuggling rate was 10th highest in … Center’s 2008 cigarette tax and smuggling study, which likewise provided estimated smuggling rates for 47 of the 48 contiguous states. Michigan’s smuggling rate, which was measured … rate of casual cross-border smuggling by its residents. “Lansing’s …

Analysis: High Cigarette Taxes Contributing to Increased Smuggling Rates in Michigan, Elsewhere

One-quarter of Michigan’s total cigarette consumption in 2013 was smuggled into the state, according to Center analysts

… estimates for cigarette smuggling rates in 47 of the 48 contiguous … still has the 10th highest smuggling rate in the nation. The analysis … in 2013, 25 percent were smuggled in. “People don’t realize … This is the fifth set of smuggling rate estimates published … contained detailed histories of smuggling in Michigan and other states. …

An Empire of Smuggled Smokes

New York's cigarette taxes have sparked a huge black market and should be rolled back

… degree to which cigarettes are smuggled between states. Through 2015, … jurisdiction, the highest smuggling rate of any state. New York … model we built to measure smuggling compares legal paid sales … other scholars—point to smuggling. Our model also controls … factors that may influence smuggling rates, such as the presence …

America’s Illicit Smokes Market Set to Get Larger

Banning or raising taxes on cigarettes will increase smuggling activity

… avoidance. We call this “smuggling,” and in addition to creating … changes would exacerbate smuggling, much of which will eventually … demonstrate a great deal of smuggling in the United States. Through … one state for cigarette smuggling, with a rate of 52%. That … cigarettes consumed there are smuggled. New York is followed by …

Cigarette Taxes, Smuggling Studies Continue to Generate Interest

… into how cigarette taxes impact smuggling and other unintended consequences … the degree to which cigarettes are smuggled in 47 of the 48 contiguous states. … model was designed only to measure smuggling in a few states. The model wouldn’t … consumed in the Great Lake State are smuggled. We will release our latest findings …

State Out Nearly $300M from Cigarette Smuggling

Yet another unintended consequence of high excise taxes

… cigarettes. Often we zero in on smuggling itself. A quarter of all … each state’s respective smuggling rate, its rank among the … the estimated number of packs smuggled in, and the effect of smuggling on revenue,  to name a few … net loss of revenue from smuggling. Some states, like Alabama, …

High Taxes on Cigarettes Increase Smuggling

New study looks at national rates

… cigarettes lead to high rates of smuggling, according to new research … research on cigarette taxes and smuggling was published in December … authors estimated total smuggling rates by comparing the published … the two is attributed to smuggling. Michael LaFaive is the … lead to increased rates of smuggling.” LaFaive is a study coauthor, …

Cigarette Smuggling Still Rampant in Michigan, Nation

… taxes to raise revenue, smugglers apparently continue to profit … consumed in Michigan were smuggled into the state. Nationwide, … — suggest that cigarette smuggling is not abating dramatically. … between the two is our total smuggling rate, which we then compare … estimated magnitude of the smuggling rate for 2012 has declined …

Michigan Cigarette Excise Tax Inducing Widespread Cigarette Smuggling, Other Unintended Consequences

Smuggled imports an estimated 34.4 percent of total cigarette consumption in Great Lakes State in 2006, according to study

… pack has made cigarette smuggling a profitable option for small-time … in Michigan in 2006 were smuggled in - more than half of Michigan's … with liquor prohibition - smuggling, illicit consumption, adulterated … alike." The study contains smuggling estimates for 47 of the 48 … generated from "casual" smuggling - typically an individual …

Illinois Cigarette Tax Hike Raises Concerns

An increase in tobacco taxes in Illinois has led to concerns about cigarette smuggling and related crimes, according to the Chicago Examiner. The news site cites Mackinac Center research on the issue, including this 2008 study.

Michigan State Senator Offers Cigarette Tax Cut to Cut Smuggling

… it a target for lucrative smuggling operations. Importantly, … toward reducing cigarette smuggling and other negative unintended … different types of cigarette smuggling have become rampant in the … casual and commercial. Casual smuggling is basically just individuals … their own use. Commercial smugglers not only operate on a much …

Cigarette Taxes Fuel Rampant Smuggling

… study of cigarette taxes and smuggling, and we have found empirical … evidence that shows massive smuggling still exists along with other … differential as profit. Smugglers can acquire cigarettes inexpensively … This makes it is easier for smugglers to affix stolen or counterfeit … the contraband smokes are smuggled. In order to estimate the …

Michigan a Cigarette Smuggling Haven

… latest estimate of cigarette smuggling rates, Michigan is No. 10 … smoked here that are illegally smuggled in. This is the third such … details are disconcerting. The smuggling rate here increased 12 percent … and commercial cigarette smuggling over the past two decades is staggering. Casual smuggling occurs when individuals shop …

On Cigarette Tax Evasion, I Told You So

Additional four million packs to be smuggled into Minnesota next year

… inflator would lead to rampant smuggling. In my testimony I outlined … showing a causal link between smuggling, high excise rates and tax … State had the 16th highest smuggling rate in the nation. The data … model we forecasted that smuggling would leap to 32.9 percent … so when I asserted that smuggling would only get worse as the …

Cigarette Smuggling Still Rampant, Problematic

… published estimates of cigarette-smuggling rates by state. Our latest … ranked 10th in the nation for smuggling. Nearly 25 percent of all … the Great Lakes State were smuggled in during 2013. Our estimates … Virginia. The top five smuggling states in this year’s study … were adopted, Washington’s smuggling rate would leap from 46.4 …

Analysis: Cigarette Smuggling Still a Problem, About to Get Much Worse

Lawmakers should reconsider hiking cigarette taxes to raise revenue

Smuggling is an old activity. History informs us that where … made for a great product to smuggle. They are typically expensive … which makes them easier to smuggle. Nearly each year since 2008, … of how many cigarettes are smuggled into or out of most states. … also try to account for smuggling activities on the borders …

Vaping Ban Would Increase Cigarette Sales and Smuggling

Negative consequences might offset the benefits

… interest in cross-border smuggling since the early 1990s and … combustible cigarettes are smuggled around the nation. The subject … portion of which will be smuggled. Second, cigarette smugglers would start smuggling vaping products into the …

Cigarette Smuggling Rampant in Michigan

… Detroit Free Press, the smuggling ring involved "104,300 cartons … Policy, "Cigarette Taxes and Smuggling," shows that this single … (legal and illegal) were smuggled into the state, and smuggling is not the only unintended … to terrorism. Cigarette smuggling is a function of two primary …

Cigarette Taxes and Smuggling Interview on WKAR

WKAR interviews Mackinac Center economist Michael LaFaive about the effects that increasing cigarette taxes will have on smuggling in Michigan and elsewhere. This interview was conducted on July 15th, 2002. Listen to the WKAR segment in either of two formats. Play time is 31:05. Windows Media Player …

Cigarette Smuggling Study Explained

… effect of taxes on cigarette smuggling.) February 1, 2013 Mr. Danny … estimate of tax-induced smuggling activity. We are disappointed … our own cigarette tax and smuggling research when so much other … only focuses on  casual smuggling and concludes conservatively … Reservations. That is, they smuggle. Perhaps more importantly, …

Strong Link Between Cigarette Tax and Illegal Smuggling Rates

The negative and unintended consequences of excise taxes

… together under the term “smuggling” — is rampant in many states. … previous estimates of cigarette smuggling rates in most American states. … 2016, none of the top five smuggling states for inbound traffic … New York tops the list of smuggled smokes again in our state … consumed in the Empire State are smuggled. It is not hard to see why. …

Smuggling Rampant in Minnesota

The unintended costs of cigarette 'sin' taxes

… Experiment.) Minnesota has a large smuggling problem and it is set to … 2013 raised Minnesota’s smuggling rate to 33.7 percent of the … efficient answer to this smuggling problem is to roll back excise … probably remain a top five smuggling state. We have created a … model designed to measure smuggling in most U.S. states. It tells …

California Tax Bills Asking for Trouble

Lawmakers raising cigarette excise taxes are well-intentioned but misguided

… smokers in border counties to smuggle cigarettes in from Indiana … the face of large-scale smuggling. The federal government can’t … estimate statewide cigarette smuggling rates. We estimate that California’s state smuggling rate through 2013 was equal … as the state with the most smuggled cigarettes. The irony of …

Cigarette tax debate should include lawlessness

… inspire — including widespread smuggling — would undermine its health goals. Tobacco smuggling is common. It comes in two … and commercial. A casual smuggler is basically just a working … jurisdiction. Commercial smuggling typically involves large, … Through 2015, Oklahoma's total smuggling rate was a tiny 2.3 percent, …

Fanning the Flames

Feds may adopt problematic tobacco policies

… likely to increase cigarette smuggling into the United States and … likely raise the number of smuggled cigarettes trafficked into … countries and the U.S. and make smuggling across our borders more attractive. … massive profits can be made by smuggling a product such as cigarettes. … the inflation rate means smuggling will almost always become …

The Smuggling Diaries

… latest work on cigarette smuggling shows, the incentives created … the effects on cigarette smuggling. Mackinac Center scholars … increased attractiveness of smuggling due to higher tax levels. … consumed in Michigan are smuggled. This means that people … This is known as casual smuggling and is estimated to account …

Smuggling Undermines Tobacco Tax Hike Goals

… tax avoidance. Cigarette smuggling has become rampant in parts … have estimated cigarette smuggling rates for 47 of the 48 contiguous … parts of the United States smuggling is rampant. New York’s estimated smuggling rate exceeds 60 percent of … increase proposal become law. Smuggling into North Dakota will leap …

At least we’re not New York

Empire State lights up bad policy again

… avoidance, what we call “smuggling.” The Mackinac Center annually … degree to which cigarettes are smuggled in the U.S., as well as into … New York has had the worst smuggling rate since 2011. It’s about … only result in a cigarette smuggling increase, but a net loss … employed our model of cigarette smuggling to estimate that New York’s …

Commercial Smuggling

Commercial smuggling, which involves large-scale, long-distance … long been involved in the smuggling of cigarettes.[*] We estimate … of inbound, commercially smuggled cigarettes are New Jersey, … their rates of commercial smuggling. We estimate that between … 2009, New York’s commercial smuggling rate leapt nearly 9 percentage …

Has the first tax hike of 2024 just dropped?

Tobacco tax bill would take nearly $400 million and give a boost to smuggling

… expected increase in cigarette smuggling. This proposal will hurt … avoidance, what we call “smuggling.” We published a statistical … degree to which cigarettes are smuggled around the country, as well … a function of cigarette smuggling. We estimate that, if the … adopted, Michigan’s cigarette smuggling rate would leap to 30.6%. …

Casual Smuggling

… highest rates of overall smuggling do not necessarily have the … commercial or international smuggling. In the category of casual smuggling, which involves smaller purchases, … the top five destination smuggling rates are in New York, 19.9 percent; … 11.6 percent. The estimated casual smuggling rates are directly related …

Governor, Legislature Clash Over E-Cigarette Regulations

25 states considered regulations in 2015

… would be taxed. Michigan currently has the 10th-highest tobacco tax in the country at $2 per pack; the state also has the 10th-highest cigarette smuggling rate nationally. E-cigarettes use a battery-powered mouthpiece to produce a vapor containing nicotine, which is inhaled. Some studies have shown …

Cigarette Taxes and Smuggling 2010

An Update of Earlier Research

… Michael LaFaive and Todd Nesbit update their 2008 cigarette taxes and smuggling study titled “Cigarette Taxes and Smuggling: A Statistical and Historical Review.” The update includes new statistical …

Trends in Estimated Smuggling Rates

… estimates suggest that cigarette smuggling rates across the country … 2009 revision of 2006 state smuggling rates, we estimated Michigan’s total net smuggling rate at just over 31 percent … estimate for Michigan’s net smuggling rate in 2009 is just 26 percent. … literature on cigarette smuggling), this tax hike reduced the …

$1 Cigarette Tax Hike Helps Smugglers, Not Health Outcomes

Prohibition by price drives consumers to alternatives

… primarily on the amount of smuggling these high taxes generate … sold in each state that are smuggled in to avoid high taxes. … cigarettes smoked here were smuggled in. It shows also that raising … certainly drive the proportion of smuggled smokes much higher — to 35.1 … undermined by the increased smuggling that accompanies a tax hike. …

Overall Smuggling Volumes for 2009

… have examined cigarette smuggling in terms of smuggling rates — i.e., smuggling as a percentage of a state’s … state with a relatively high smuggling rate may not experience a large volume of smuggled cigarettes relative to other …

Higher Cigarette Taxes Create Lucrative, Dangerous Black Market

… one has led to a spike in smuggling-related criminal activity … the Great Lake State were smuggled in. The destructive consequences of rampant tobacco smuggling include the corruption of … of estimates for tobacco smuggling in 47 of the 48 contiguous … representing our estimate of smuggling. Michigan’s smuggling rate …

The Cost of High Cigarette Taxes

Research reveals unintended consequences of tax

… study — Cigarette Taxes and Smuggling: A 2016 Update — with Mackinac … Todd Nesbit. To determine smuggling rates across the country, … the two is attributed to smuggling, either casual or commercial. … rate makes it a hotbed for smuggling: … A resident of New York … their tobacco elsewhere.” Smuggling can come at a high cost to …

Cigarette Taxes and Smuggling

Cigarette Taxes & Smuggling Menu Interactive Map Studies Articles … been studying cigarette smuggling rates since 2008. Our research, … suggests that cigarette smuggling is a real problem in the … likely to have high cigarette smuggling rates, as the tax disparities … earn easy profits. Illegal smuggling deprives governments of tax …

New Smuggling Estimates

… highest inbound cigarette smuggling rates were Arizona, where … highest inbound cigarette smuggling rate, with over half of all … cigarette consumption coming from smuggled sources. This is noteworthy. … raising the incentive to smuggle cigarettes from Mexico to … the state rankings of net smuggling rates: Texas, from 16th to …

Cigarette Taxes and Smuggling

… the Center, continues to garner media attention. "Cigarette Taxes and Smuggling," released Dec. 2, 2008, and LaFaive were cited Friday in Chicago Talks … government revenue, and those higher taxes can also lead to more cigarette smuggling.

Wyoming Lights Up a Tax Hike

Op-ed published in Casper Star Tribune

… healthier. Why? Cross-state smuggling. It’s more common than you … degree to which cigarettes are smuggled between U.S. states, imported … Cowboy State was a source of smuggled smokes to other states. … Wyoming, an additional 17 were smuggled out to other states. The direction of smuggled smokes will reverse itself, …

Cigarette Smuggling Study Released

… recognized work on cigarette smuggling. The study ranks 47 states … degree to which cigarettes are smuggled in or out of each and confirms that Michigan’s smuggling rate has declined in recent … report “Cigarette Taxes and Smuggling: A Statistical Analysis and … arrests involving a cigarette smuggling cell operating in North Carolina …

Smuggling Study Continues

… to which cigarettes were smuggled into the state. There was … of hard data on cigarette smuggling in Michigan or elsewhere … remained the 10th-highest smuggling state at 25 percent of the … Lake State, one in four is smuggled in. Our original and subsequent … designed to measure the smuggling rates of just three states: …

Prohibition Doesn't Work — Need it be Said Again?

Efforts to eliminate flavored cigarettes or vaping products won't succeed

… that bans give birth to smugglers, as do high price differentials … result, both are a cigarette smuggler’s paradise. Banning flavored e-cigarettes will prompt more smuggling, enriching smugglers and the treasuries of bordering … degree to which cigarettes are smuggled because of tax evasion and …

Proposed Flavor Bans Invites Trouble

History shows prohibition doesn't work

… prohibition, leading to rampant smuggling and other very negative consequences … tobacco consumed in Vermont was smuggled in. That is relatively low … New Hampshire and brazen smugglers of illicit smokes and other … million as a direct result of smuggling in 2017. For every 100 cigarettes … 65 were acquired there and smuggled out. This latter figure will …

States Tempting Fate With Cigarette Bans

Some policies may make problems worse

… avoidance (what we call “smuggling”) for most U.S. states. We … worst among 47 states for smuggling. Nearly 20% of the state’s … explosion of additional smuggling by imposing an almost complete … troubled histories of cigarette smuggling, are also toying with a complete … behavior includes rampant smuggling and other lawlessness, including …

Where There’s Smoke, There’s Smuggling

… Detroit Free Press, the smuggling ring involved "104,300 cartons … Policy, "Cigarette Taxes and Smuggling," shows that this single … (legal and illegal) were smuggled into the state, and smuggling is not the only unintended … to terrorism. Cigarette smuggling is a function of two primary …

Prohibition Repealed 81 Years Ago Today

Similarities exist in cigarette market due to high taxes

… appendix to a large study on cigarette smuggling. The purpose of doing so was to … market. These high taxes encourage smuggling by individuals and organized crime … cigarettes consumed in Michigan were smuggled into the state. But smuggling isn’t the only parallel with the …

The National Vaping Ban is a Bad Idea

Mackinac Center signs onto coalition letter against national ban on flavored vaping

… possible increase in cigarette smuggling and the smuggling of flavored vaping products, … Prohibition and cigarette smuggling informs our decision. During … Lakes State due to rampant smuggling. One Michigan road trafficked … by casual and large-scale smugglers looking to save or make a …

Cigarette Taxes and Smuggling

An update through 2015

… habit, but to an increase in smuggling. Since 2008 the Mackinac … degree to which cigarettes are smuggled into and out of states. High … believe it is a function of smuggling. In 2015, New York State had the highest inbound smuggling rate at 57 percent. In other … there eventually wound up smuggled into other states. New Hampshire …

Interstate Cigarette Smuggling

… Michigan — can tempt people to smuggle. In economic terms, smugglers are engaged in arbitrage, … the financial cost of the smuggling is relatively low, some people … activity. Interstate cigarette smuggling is not new. Graphic 5 shows … recent years, however, so has smuggling. A number of scholarly studies …

High Taxes Make Cigarettes 'Gold Bars' For Thieves

Government has helped make cigarettes more valuable by imposing $2 per pack tax

… that 29 percent of cigarettes in Michigan are smuggled. Dale Brown, commander of Detroit private security … ~~~~~ See also: High Cigarette Tax Leads to Smuggling Study: High Cigarette Taxes Cause Widespread Smuggling in Michigan, Elsewhere in U.S.

Cigarette Smuggling: Financing Terrorism?

… safehouse was used as a base for smuggling cigarettes. The smuggling operation exploited the tax … a pack. Allegedly, the smugglers would drive the 680 miles … dollars were made on the smuggling operation between 1995 and … bought with profits from smuggling cigarettes. It is estimated …

Real Cigarette Smuggling Anecdotes

… cigarette tax rates and illicit smuggling. The figures this analysis … suggests that cigarette smuggling is, in fact, a real issue … anecdotes, they imply that smuggling and related crimes are becoming … other costs to cigarette smuggling — the corruption, violence … investigating the alleged smuggler, Wenheng Zhao, and undercover …

The Realities of Cigarette Smuggling

… cigarette excise taxes, smuggling ensues. Cigarette packs are … 19 percent as a direct result of smuggling. There is ample empirical evidence that such smuggling occurs. In our 2008 study, … new tobacco “diversion” (smuggling) cases each year. Since 2003, … involvement in massive cigarette smuggling. The complaints were recently …

Minnesota Eyes Higher Tobacco Taxes

… buying contraband cigarettes smuggled in by organized traffickers. … Center’s newest cigarette smuggling study indicates that in 2011, … consumed in Minnesota were smuggled in through one of two means: casual and commercial. Casual smuggling typically involves border … consumption. Commercial smuggling is typically a function of …

Prohibition by Price

… of which we speak include smuggling, violence against property … across the country cigarette smuggling has been used to generate … analyses of cigarette taxes and smuggling. We estimated in 2010 that … would increase cigarette smuggling to more than 53 percent of … is a staggering amount of smuggling — an estimated 119 million …

High Cigarette Tax Leads to Smuggling

… every four cigarettes is smuggled into Michigan as the state’s … percent of cigarettes were smuggled into Michigan. Overall, the … Michigan men were accused of smuggling more than 56 million cigarettes … the 5th highest “casual” smuggling rate in the country at 11.6 percent. A casual smuggler was defined as an individual …

Cigarette Taxes and Smuggling: A 2016 Update

… degree to which cigarettes are smuggled into and out of American … scholars too, suggests that smuggling is a rampant problem, particularly … cigarette-related crime, such as smuggling. These crimes not only deprive … tax rates and cigarette smuggling rates. It relies on the same … again claims the highest smuggling rate in the nation. In fact, …