Michael LaFaive and Todd Nesbit: R.I. set to lose tobacco revenue

The Rhode Island General Assembly is working toward a budget vote that may — among other things — raise excise taxes on cigarettes by 25 cents per pack. The increase will prove counterproductive from both a revenue and public health standpoint.
We first estimated a statistical model in 2008 to measure the degree to which cigarettes are smuggled. It covers most American states and has since been updated with tax and population changes through 2013. Our model tells us that through 2013 Rhode Island’s total smuggling rate is almost 32 percent of the total cigarette market.

http://www.providencejournal.com/article/20150508/OPINION/150509392/2011