Cigarette smuggling causes tax revenue to go up in smoke

By Michael D. LaFaive and Todd Nesbit | Michigan Capitol Confidential

Since 2008, Mackinac Center for Public Policy analysts have periodically published estimates of cigarette smuggling in 47 of the 48 contiguous states. The numbers are quite shocking.

In 2012, more than 27 percent of all Michigan in-state consumption was smuggled. In New York, almost 57 percent of all cigarettes consumed in the state were also illicit. This has profound effects on the revenue generated by state (and sometimes local) government.

at Michigan Capitol Confidential.

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