Ohio’s cigarette tax proposal would light up a black market

Cigarette smugglers, or “buttleggers,” will “load up a U-Haul” with cigarettes from a low-tax state and re-sell them in higher-tax states. The practice is little-known but highly lucrative—the Bureau of Alcohol, Tobacco, and Firearms estimates that smugglers can net up to $4 million from a single truckload. As states increase their cigarette taxes, they also incentivize this black market activity.

http://watchdog.org/222601/ohios-cigarette-tax-proposal-light-black-market/