Sunday, November 1, 2009

10/25-10/31

NY has recently filed a dispute against Native Americans claiming that the Native Americans should have to pay taxes on their cigarettes just like everyone else. The Native Americans are sticking to a legislation made in 1794, which keeps them immune from having to pay taxes. The state, cigarette companies, and anti-smoking agencies are all standing behind this dispute for many reasons. First, the state would earn approximately $400 million or more per year, which would make up the difference in the $3 billion budget deficit towards schooling. The cigarette companies find it unfair, especially when there are people out there counterfeiting their brand name and selling it tax-free over the internet. Lastly, the anti-smoking agencies believe that thousands of people would stop smoking if they actually had to pay full price for a pack of cigarettes. The average additional cost of a pack of cigarettes for taxes is $2.75 for the state of New York, and its believed that there are millions of cartons per year being sold but not taxed. If the taxation were to take effect, the industry as a whole could potentially see an increase in sales. Those people who don't buy cigarettes locally would most likely do so if they realize that they are no longer saving money by buying these cigarettes online or under-the-counter. I agree with the state of New York that a taxation should be put on all cigarette sales and not only some of the them. If cigarettes are being sold and consumed in a specific state, then that state has the right to recieve some type of benefit from it.

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