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and in New Jersey, a staggering 61.8 percent.[*] A study published by Michael Lovenheim in the March 2008 National Tax Journal finds, "[B]etween 13 and 25 percent of [U.S.] consumers purchase cigarettes in border localities," and "[C]ross-border smuggling confounds many of the potential health and revenue gains from cigarette taxation."[1] He is not the only scholar to advance this thesis

Research has shown nicotine, the addictive drug found in tobacco products, can harm a developing adolescent brain and increases the risk of developing psychiatric disorders and cognitive impairment.

With nine containers seized in ten, Rowan says, [smugglers] still would not be losing money.[15] Canada had such tremendous problems with counterfeit and smuggled cigarettes that in 1994 the federal cigarette excise tax was cut from $16 to $11 per carton.[16] SCHIP Reauthorization in 2009 Was the Largest Federal Cigarette Excise Tax Increase in History The reauthorization of SCHIP in 2009 included the largest federal cigarette excise tax increase in history, bringing the tax to one of its highest levels ever in inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets

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