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It places a disproportionate financial burden on a small group of adult consumers, many of whom are already facing significant cost-of-living increases across the board. Cigarette taxes in neighboring states When Indianas tax on cigarettes rises from just under $1 a pack to nearly $3 a pack on July 1, the Hoosier State will have the 12th highest state cigarette tax in the country and a higher rate than any of the states that touch its borders

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