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The measure allows nicotine distributors to retain a vendor allowance of 1.1%

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and Raise over $6 billion in new revenue in the first year alone

Effects of Tax Increases on Cigarette Use and Tax Revenue One unintended consequence of raising cigarette taxes could be for increased tax avoidance strategies, such as purchasing cigarettes from Native American reservations or neighboring states where taxes are lower

Significant cost reduction Flexibility Less financial pressure For many, the trade-off becomes logical over time

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