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Reason
Reason
J.D. Tuccille

Cigarette Taxes and Regulations Continue To Fuel a Thriving Black Market

If you want to create a black market in a perfectly legal product, just make regulations and taxes so onerous that many people prefer to buy from illegal vendors to escape being hassled and mugged by the powers that be. As a new study reveals, that's certainly the case with cigarettes, which remain available for sale across the United States but with much of the trade continuing to involve smokes smuggled from one jurisdiction to another. Since busybody politicians refuse to learn from the ongoing trade, this is a tempting business opportunity for risk-tolerant entrepreneurs as well as low-tax jurisdictions.

High Taxes Create Black Markets

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