[lowbridge]

New York State earlier this month began charging $1.50 in taxes for each pack of cigarettes sold. On the same date, April 3, Connecticut began charging $1.11. On July 1, Maryland will begin charging smokers $1 in taxes for every pack. Washington State, Alaska, Hawaii, Maine and Rhode Island also currently have, or soon will have state tobacco taxes of $1 or more per pack.

Oh good. The mafia has been cash strapped lately. This is just what they needed to get themselves back on their feet.

[StriperSniper]

I can't understand why there isn't a "gigantic" black market in this area.

lowbridge, you beat me to the 'government as mafia' angle, but that was my response to evad's statement.
The biggest goon (in this case govt. on all levels) controls the 'action'.