I would have thought to just fine them, or tax purchases out of existence. No need for shackles.
NYPD officers approached Garner on July 17 on suspicion of selling single cigarettes from packs without tax stamps. After Garner told the police that he was tired of being harassed and that he was not selling cigarettes, the officers attempted to arrest Garner. When Pantaleo placed his hands on Garner, Garner pulled his arms away. Pantaleo then placed his arm around Garner's neck and wrestled him to the ground. With multiple officers pinning him down, Garner repeated the words "I can't breathe" 11 times while lying face down on the sidewalk. After Garner lost consciousness, he remained lying on the sidewalk for seven minutes while the officers waited for an ambulance to arrive. Garner was pronounced dead at an area hospital approximately one hour later.
Black markets are a reality under current economic conditions, and they're a reality even in completely legal markets (there's always someone willing to pay XX% less in exchange for YY% more legal risk). Putting extreme taxes and/or fines on smoking might pour gas on that market, but long-term trends just don't support its survival.
And as for fines: we already have a legal structure for that[1].
But there's also a trend against long term damage here: smoking rates have been declining for decades, and the evidence overwhelmingly suggests that higher taxes and civil penalties (like fines for smoking in parks) do reduce smoking across all ages and demographics. Fewer people smoking overall means fewer people who are subject to any sort of systemic abuse. That feels like a decent tradeoff to me, especially when we consider the knock-on effects of smoking itself (individual and community health, pollution, dental outcomes, &c).
What happens when they don't pay their fines? There has to be some backup plan and it's usually jail. You could keep increasing the fine for as long as they don't pay, but they you end up with loads of bankrupt people.
> or tax purchases out of existence
That creates a black market. In the UK, where tobacco taxes are high, it's quite easy to find small shops and individuals who will sell illegally imported cigarettes at a fraction of the price.