Judge blocks NY’s bid to tax cigarette sales

ALBANY – A federal judge Tuesday blocked temporarily the state’s latest attempt to collect sales tax on cigarettes sold by Indians to non-Indians, though it was unclear whether the decision applies to all tribes.

Here. NY Governor David A. Paterson proposed the tax as a way to suck $100 million from the private economy into government coffers, and harm native American’s ability to make a living on their reservations.

We have another experiment in how taxes affect behavior. Non-Indian New Yorkers are shopping at Indian places of business because there are lower taxes.


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