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Of the 152 countries from which information is available, taxes as a percentage of product price range from 80 percent down to almost 0 percent.[11] The tax-related price differentials between tobacco products in different nations induces cross-border bootlegging and casual smuggling in much the same way it does between American states, although some scholars report that smuggling rates can also be influenced by the degree of corruption tolerated in and among nations.[12] In a widely cited paper, economists David Merriman, Ayda Yurekli and Frank J

(2) Reducing negative externalities-If there is less alcohol and tobacco consumption as a result of excise taxes, the taxes may have socially desirable consequences

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