BBQMan, the points I am going to try and make are not to shut down your points. They are intended to further the discussion. I find this discussion very important and fascinating. It is one of those things I have really, really thought about and talked about with other people with opinions on both sides. I don't have a definitive answer in my mind.

One thing to consider in this discussion is people do still smuggle cigarettes and it is still a very big business. A single truckload of cigarettes (typically 800 cases) highjacked in Virginia yields $1,917,600 in profits if sold in New York.

Here is how most tobacco smuggling rings work according to the Bureau of Alcohol, Tobacco, Firearms and Explosives: " ...legal entities pay significant taxes on their product, including $1.01 per pack in Federal Excise Tax, from $0.07 to $4.25 per pack in state and local excise taxes, and typically $0.50 per pack to a settlement fund for health care costs incurred by the states as a result of tobacco use by their citizens.

"By selling non-tax paid cigarettes at tax paid prices or just below that price, criminal organizations are able to net a substantial profit. For example, purchasing legally taxed products in Virginia (a low excise tax state) and driving them to New York (a high excise tax state) for resale creates an immediate $3.95 per pack profit margin. A single carton of cigarettes (10 packs) purchased in Virginia and sold in New York will yield about $39.50 in profits; a single case (60 cartons) yields $2,397 in profits and a single truckload (typically 800 cases) yields $1,917,600."



http://www.atf.gov/press/releases/20...commodity.html

Also, a 2004 study from the Government Accountabilty Office (that's an oxymoron): http://www.gao.gov/new.items/d04641.pdf

Did you know about this report and the new "global laws" and new search and seizure without a search warrant laws the government is considering to thwart the cigarette smuggling?