Smokin'Sin Taxes - Part 1

OFF THE WIRE
Smokin' Sin Taxes - Pt. 1
Decriminalize the sale of cigarettes
by Hank McGrath
Joker, a northeast biker,bought 5 cartons of cigs at the Lake Side store on Route 89 south of Seneca Falls and headed out on the highway...The state police watched the harley pass and sped out to make his stop. Joker was arrested & charged with tax evasion after accusing him of possessing untaxed cigarettes. None of the cigs had state tax stamps, and the receipt showed no sales tax. He had paid neither the excise tax on the cigarettes nor the tax on the purchase.
State tax law prohibits anyone except an authorized agent from possessing more than 400 untaxed cigarettes. Jokers five cartons contained 1,000 cigarettes. He was also accused of smuggling,but was not charged. Meanwhile,Cayuga County Sheriff's deputies armed with search warrants were confiscating cartons of untaxed cigarettes from two Cayuga Indian nation-owned convenience stores saying the sale of those cigs are illegal.
That was in 2008 - Joker paid a $200 fine and the Cayuga Indians won their appeal on the case July 10,2009 in a 3-1 decision in Manhatten on the basis they are a soveriegn Nation and not subject to state taxes nor to collect taxes as an agent of the state.
According to 2006 reports in NYC alone there was a $40 million loss in city revenue and over $1 billion in tax revenue for the state due to evasion of cigarette taxes which authorities claim is a direct result of the sale of non-tax cigarettes from reservations,specifically,[allegedly]the Seneca Indians.
According to goverment reports smuggling and bootlegging of cigarettes is being committed primarily by foreign nationals(arabs,chinese,lebonese,etc.),street gangs, motorcycle clubs,truckers and the common "Joe Shmoe" citizen (meaning everyone is a cig smuggler now until the govt gets 101% control!). That leaves only the politician and corporate official out of the criminal profile list!
According to Lawrence Delevingne in a 2008 WordPress article entitled Black Smoke: NYC Underground Economy,"the penalties for illegal cigarette sales are relatively light, especially compared to drug dealing. No matter how many cigarettes are sold, jail is rare. For the sale of fewer than 50 cartons, a first time offender typically receives a fine of $200 per carton, up to $10,000 for an individual and $20,000 for a business. For the sale of more than 50 cartons, repeat offenders receive the same $200 per carton fine, but the limits are pushed to $50,000 for individuals and $250,000 for businesses. The sale of untaxed cigarettes is a tax law violation or a misdemeanor, not a felony. There is typically no fine for fewer than 1,000 cigarettes (five cartons), a common amount for street vendors". The benefits outweigh the punishments as Delevingne explains,"The typical “butt-legging” operation is simple: buy low or no-tax cigarettes on an Indian reservation, in a low-tax state, on the Internet or from abroad, and then resell them on the black market for a mark-up, usually double what the smuggler paid – $2.50 to $5 per pack, for example. Smokers are happy because they’ve saved two or three dollars without leaving the city, or even their block. If a street vendor, the smallest player on the smuggling pyramid, moves 10 cartons a day at $25 profit each, that amounts to more than $90,000 annually – tax free.
The sale of untaxed cigarettes is a tax law violation or a misdemeanor, not a felony. There is typically no fine for fewer than 1,000 cigarettes (five cartons), a common amount for street vendors."
Recently,I sent a sensible economic stimulus proposal to NYS Governor Patterson suggesting a 6 month decriminalized grace period to allow for ALL TAXPAYING CITIZENS to purchase non-taxed cigarettes and tobacco from indian reservations for resale as an economic stimulus project.
There is no question most of us would be able to pay off all our bills and upgrade our lifestyles in that short period! Furthermore,since we elect officials and they essentially benefit from the sale of cigs,drugs and other items which are criminal for the common citizen to benefit from,we should be allowed to sell packs & "loosies" to pay our bills!
Hell,I'm smokin' a "King Mountain" menthol (I got for $3.50 a pack) as I write this!