Monday, October 27, 2008

War For Tobacco Wampum

The city is d-e-s-p-e-r-a-t-e for money, so what’s a mayor to do? Declare WAR on honest tobacco-selling Indians, that’s what! Mayor Bloomberg is suing eight Long Island smoke shops on the Poospatuck Reservation in Mastic, Long Island for selling cigarettes (about $5 per pack) without charging local and state tax. He contends that if cigarettes weren't sold in these stores, they’d be bought in New York City instead. He believes this has cost the state $525 million and the city $195 million since 2004 however estimates vary. He’s called upon Governor Paterson for action. The governor is reportedly “negotiating.” An Indian spokesman believes they’re being unfairly blamed for the fiscal problems of others. That may be true. According to New York state law, cigarette buyers are responsible for reporting tax-free purchases, not the stores. Indian smoke shops operate legally throughout New York. These establishments buy cigarettes wholesale and then sell them without tax. All legal. No “smoke and mirrors.” Without a change in state law and unless NYC can somehow prove that cigarette buyers would purchase packs in the five boroughs and not on the reservation, Mayor Bloomberg’s case will likely go "up in smoke." One other thought. Since Mayor Bloomberg is actively engaged in reducing smoking in New York City, shouldn't he be looking to curtail sales as opposed to making money from them?

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