Breitbart.com posted an article today about the impact of an upcoming tax increase on cigarettes in Illinois scheduled to take affect later this month. On June 24, the tax on a pack of cigarettes will increase by $1. Some convenience stores are running low on cigarettes because customers who usually come in to buy one carton are currently buying two or three in order to save the $20 or $40 dollars.

The article reports:

As NBC Chicago reports, a Cook County, Illinois, cigarette tax hike earlier this year is to blame for an alleged 15 to 20 percent drop in business at one Illinois tobacco retailer, adding that Indiana sellers could substantially gain from the latest increase:

“After March 1 when Cook County raised their taxes, I lost about–between 15 to 20 percent of my business,” Illinois tobacco shop owner Jawad Muqeet said. “The prices are so high nobody wants to buy cigarettes in downtown”

Indiana tobacco sellers could gain from the this increase. Hammond smoke shop owner Roni Patel says a carton of Marlboro cigarettes costs $56 on average in Indiana, compared to $50 in Will County, Illinois. He says the average price per carton in Will County will raise to $61 following the tax increase, expected to go into effect June 24.

Behavior that is heavily taxed decreases; behavior that is subsidized increases.