If taxes were increased just a little bit more on tobacco growers the government could incent people to produce and smuggle cigarettes illegally, (it's happening now to a small degree anyway, so we're very close to that price point as it is).
Once we as a society decide to recreate the prohibition experiment (this time with tobacco), the Bureau of alcohol, TOBACCO, firearms and explosives can prove their worth and keep themselves busy fighting the evil tobacco smugglers threatening our society. I can hear it now “The tobacco cartels are trying to turn our teens into nicotine addicts and are bringing about the collapse of our health care system as hospitals strain under the burden of providing lung cancer patients with expensive treatments.”
It may sound far fetched but it’s not that far off from what BATFE has tried to do with gun ownership. They want more firearms crimes to chase down so they manipulate public perception in an attempt to pass laws that criminalize gun ownership, and thus increase the perceived need for a BATFE.