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February 2017

The Effect Of Excise Taxes On Cigarette Smuggling In Wisconsin

From: Wisconsin Public Radio

Tax On A Pack Of Cigarettes Is $2.52 In Wisconsin, Making It The 10th Highest In US

By Shamane Mills

A national nonprofit that wants lower taxes on cigarettes says the high cost encourages smuggling. But health groups say higher taxes reduce cigarette sales and discourage smoking. Caught in between are smokers who pay the taxes and states that rely on that revenue.


But the national Tax Foundation, a tax policy nonprofit, likens high cigarette taxes to de facto prohibition. They say the higher the taxes, the more likely people are to buy cigarettes in areas with lower taxes and bring them across state lines for sales and consumption.