[Just another Joe]

This isn't the first time it's been said. It won't be the last time.
You can get a lot of prison time for importing marijuana, heroin, meth, and the like.
There are not very severe penalties for moving cigarettes from one state to another.

When the price is outrageous in one place ($7.50 in NY City) and reasonable in another place ($3.00 near KC, MO in some places), the penalty for doing so light, and the profit to be made really very good, what does the government expect?

Entrepreneurs will pop up anywhere there is a buck to be made with light penalties.

Weren't a couple of the founding fathers involved in some type of smuggling?

[Know your rights]

Entrepreneurs will pop up anywhere there is a buck to be made with light penalties.

Or even heavy penalties; there's no evidence that illegal drug users have a tough time finding what they want.

[TKDietz]

"When the price is outrageous in one place ($7.50 in NY City) and reasonable in another place ($3.00 near KC, MO in some places), the penalty for doing so light, and the profit to be made really very good, what does the government expect?"

Are you implying that this smuggling would not occur if the penalties were increased? I would suggest that as long as there is huge demand for cheaper cigarettes and a healthy profit to be made in supplying same, this smuggling would go on regardless of the possible punishments. Some who currently smuggle might decide to give it up if the possible penalties increase substantially, but others would only see that as an opportunity to increase their business and ultimately their profits filling the supply void for those who quit the business or get busted and sent away.

This type of black market operation is not unlike the illegal drug markets. Increasing penalties and arresting and incarcerating more and more people does not reduce supply because as long as there is demand, someone is going to step up and supply that demand if he can make a few bucks doing it. When one dealer is busted it just means more business for the rest. Supply/availability remain stable.

The only way to cure this problem is to lower taxes in these high tax areas to the point where it is no longer profitable to bring in cigarettes from neighboring states. As long as people are able to double their money selling illegal smokes, there will be people selling illegal smokes whether the penalties are increased or not.