At close to 10 dollars a pack here in New York I don't see how some of the low income people continue smoking...
The just go to NJ or a different state to stock up. They could order on-line, get duty free, or roll their own.
Why even bother when the tax payer is going to pick up the tab? Not that I condone smokers, but it is the working class and the smarter ones who trips to Delaware or an Indian reservation to stock up.
Mayor Bloomberg is very upset about people avoiding his cigarette tax... He is working very hard to put the Indians out of business and tax the internet purchases.
Giving that I hate the cigarette industry, I'm still opposed to the government levying ridiculous taxes. Even though these are taxes on something evil, they set the precedent to levy outrageously high on other things such as European taxes on fuel. While I'm for a consumption tax, there is no reason taxes on anything should be more than a quarter of what the product or service is worth, not to mention more than what the product is worth.
Given that the money does need to be collected, I would prefer to see it collected through the enforcement of crimes against smokers. If someone smokes in a public place, slap them with a fine. If someone throws a cigarette out of a car, pull them over and give them a ticket. While I believe people should have the right to smoke in their own homes(given that the homes are their's and not the government's), they should be charged with child abuse if they expose children to second hand smoke.
Also, make people have to register as smokers to purchase cigarettes. This information should be available for health insurance companies to calculate risk. Registered smokers should not be eligible for government benefits when they get lung cancer because they made the choice to smoke.