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Nevertheless, the state of New Jersey recently witnessed a revenue decline after a cigarette tax increase - in this case, in the year following a fiscal 2007 tax hike from $2.40 per pack to $2.575 per pack.[5] Newly available fiscal 2008 data indicate that the net decline has occurred for the second year in a row.[] While some of this decline may be due to people quitting cigarettes, some is probably due to increased consumption of smuggled tobacco

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What about productivity, the number of successful ex-smokers generated

The burning of the tobacco produces a complex mixture we call smoke