Many retailers and wholesalers have cleaned out stocks to avoid the floor tax and one manufacturer I spoke to had not sold a cigarette in a week.

Cigarette prices have already increased in advance of the tax hikes. Both PM USA and RJR raised prices -  slightly more for their discount brands than premium!

Consumption is predicted to drop at least 7%. The Federal Government expects to net $33 billion to fund Schip. In the short-term this income stream is secure but the longer term outlook is not so rosy.

There are many pending State tax increases yet to come! 

How will consumers avoid cigarette taxes?