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Specifically, for low-tax states, the nave model will systematically under-predict actual sales (positive residual), as consumers from other states travel across state borders to purchase cigarettes in the lower-tax state

Opponents of Proposition 56 said during the campaign that with just 13 percent of the new tobacco tax money earmarked for anti-smoking efforts, the tax would mostly benefit insurers and other wealthy special interests on the backs of smokers, many of whom are poor

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