Cigarettes are cheap in California

Because current cigarette taxes are so low in California, cigarettes are cheaper here than in the US as a whole.

According to The Tax Burden on Tobacco (page 182) in 2010 the average pack of cigarettes in California costs $5.374 compared to$5.554 for the US as a whole.  The low price in California reflects the tobacco companies' success in keeping taxes in California; total taxes only comprise 35.0% of the price of a pack of cigarettes compared to 44.2% for the US as a whole.

Cheap cigarettes promote smoking.

Passing Prop 29 would raise the fraction of the price that is tax to a bit above the national average, 45.2%, assuming Philip Morris and Reynolds pass the tax through to consumers. 

Of course, the price increase might be more than the $1 tax increase because the cigarette companies often increase the wholesale price at the same time taxes go up so the companies can maintain or increase revenues despite declining consumption.  That allows the companies to get the cash while smokers blame the government.

Pretty clever.