gling in all 50 states. The states are estimated to lose at least $674 million per year due to interstate cigarette smuggling from low-tax states to high-tax states. The California Board of Equalization, which collects state cigarette taxes, estimates that the state loses between $20 million and $50 million to cigarette smuggling from Mexico.
             The Effect of Increasing Tax on US Cigarette
             Eric Lindblom (2002) from National Center for Tobacco indicated that when government increases cigarette tax, it would affect to the price of cigarette. In other words, price of cigarette will increase causing the impact in the supply and demand of cigarette in the market.
              Suppliers- when government increases tax, manufacturers are not willing to produce more and also wholesalers are not willing to sell more of cigarettes than before. Therefore, an excise tax has effect of decreasing the supply of cigar
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