Why do most cigarette smokers tolerate massive state tax increases?
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State governments don’t get a lot of fiscal good news these days, so it was surprising this week when the state of Connecticut announced that a recent $1-a-pack tax increase on cigarettes raised $5 million more than the state had projected. As economists would predict, the daunting total of a $3-a-pack tax in Connecticut—the fourth highest burden in the country—did reduce the sale of cigarettes. [...]
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