Steven Greenhut Explains Why Cigarette Sin-Tax Hike Could Boost Black Markets
"Do-gooder" types are just making the situation worse.
Anti-smoking activists in Sacramento have submitted to the attorney general a proposed ballot measure to boost taxes on a pack of cigarettes by $2, and use the revenues to fund research into the treatment of tobacco-related diseases. It's the latest effort to crush smoking by significantly hiking the costs of tobacco. But, Steven Greenhut points out, tax hikes offer diminishing benefits and can lead to black markets.
