Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at email@example.com , with comments or suggestions.
Monday, December 11, 2006
Featured Entry - Tax free Cigarettes
Right now there is no tax on Indian cigarettes and they are significantly cheaper. Indian reserves are like a Costco for cigarettes because when people have the chance they like to buy a lot at once and save some money (I know Costco has taxes but the whole buying in bulk idea carries over). NY state is trying to pass a law that would place a tax on the cigarettes. NY state loses about 600million dollars a year to untaxed cigarettes and now wants part of that money. The new tax would be about $1.50 (still less than other cigarettes). The tribes are worried because most of the revenue they make is from tax-free cigarettes and if the tax is imposed their revenue would be significantly less. The tribes would be in serious trouble if this law is imposed and it is unfair to impose the tax so all of a sudden. Maybe if the government did something to keep them in business but they can't just take away such a large part of their revenue and not expect consequences.