[Heartofsong83]

That's true, although the main reason is the wide disparity in state taxes (from $0.03 to $2.50). Personally, I would rather see high taxes all around on tobacco - with no revenue adjustment budgeted (to make it appear revenue-neutral).

[patton]

Indian reservations are exempt, and

many grey-market cigs come from oversees, and

counterfiters pay no taxes at all.

Not to poke holes in your idea, but...