Taxation Without Inhalation

Colorado cigarette taxes are going to jump 320% after the first of the year. While good intentions may be behind this tax, I predict that the results will be a massive backfire. Two things will happen, a thriving black market will spring up in the state, and purchases (as well as tax revenues) will jump in neighboring states and on the Indian reservations. My crystal ball says that Colorado will see a drop in tobacco tax income.