
As I predicted, the attempts of cash-strapped New York State to collect hefty cigarette taxes from the Seneca Nation of Indians has been blocked at the 11th hour by a federal judge. And already the angry rallies are starting up in anticipation of the state trying to keep persistently attempting to collect these taxes.
In their challenge before Arcara, Seneca lawyers contend that the taxation would violate Indian treaties dating from as long ago as 1794, but state lawyers say that is inaccurate.
“Judge Arcara’s ruling sets the stage for an orderly and thoughtful legal review of what we believe is an illegal, ill-conceived attempt by New York State to use the Seneca Nation and other Indian Nations … as piggy banks to balance the state budget,” said Barry E. Snyder Sr., the Seneca president.
Huge amounts of money are at stake.
Andrew D. Bing of the Attorney General’s Office estimated Monday that the deficit-ridden state could collect $110 million in cigarette taxes from Native American businesses in the first six months after the law takes effect.
That’s it: All this muss and fuss over a measly $110 million in projected tax revenue? This issue shouldn’t be debated anywhere beyond this absurdity. We can discuss the morality of cigarette smoking until the six-winged Martian chickens come home, but violating Indian treaties shouldn’t factor into a more important issue: the completely inability of NYS to balance its budget. The recently-mandated $4.35 per-pack tax was a feeble attempt to fill a budget shortfall. That is why people are flocking to the reservations for cheap packs and cartons.
If you tax an addictive vice ridiculously high, addicts will find a cheaper way of getting their fix. It’s kind of like the old cliche about plugging up a garden hose with a golf ball. Let’s just say the state is able to impose their tax on the Natives. Enterprising individuals will start smuggling mass quantities of cigarettes from states without the hefty tax. A black market will ensue. We all know what this means: criminal activity and all sorts of real tax dodging; stuff that will clog up our already overburdened legal system. Not smart, guys. We all know where prohibition leads.
Let’s balance the budget first by cutting out all the useless waste that need not exist anymore. Then, later we can worry about how to treat smoking as a public health issue and subsequently get more people to quit. This can all be done in a way that doesn’t involve resorting to oppressive taxes and the violation of Indian treaties.


