Cigarette Taxes vs. Cigarette Smuggling

"Three of every five cigarettes consumed in New York State were smuggled in from lower-tax states in 2011, according to new estimates from the Mackinac Center for Public Policy, a free-market research organization in Michigan. That is the highest smuggling rate in the country.

Perhaps not coincidentally, New York State also has the highest cigarette tax rate — $4.35 per pack, not counting the additional $1.50 per pack levied in New York City.

New Hampshire had the highest share of its cigarettes — 26.8 percent — smuggled out of the state. The state cut its tax rate in 2011 by 10 cents to $1.68, still slightly higher than the national average. But it is surrounded by states with much higher tax rates. In Massachusetts, for example, the tax was $2.51 per pack."

http://economix.blogs.nytimes.com/2013/01/10/cigarette-taxes...

Hmmm... I wonder if there is any connection. ;-)