Politics on the Hudson

Political news in the Lower Hudson Valley, New York state.


Senate Resolution To Congress: Pass Ban On Cigarette Mail Shipments

Posted by: Joseph Spector - Posted in Uncategorized on Mar 17, 2010

The state Senate yesterday passed a resolution that supports an attempt in Congress to ban the post office from shipping cigarettes, which senators said would close a loophole to allow cigarette sales on Native American reservations to be taxed.

The Prevent All Cigarette Trafficking – or PACT – Act could be passed in Congress as early as this week. The Seneca Indian Nation in western New York would be directly hit by the law, and the tribe has said about 1,000 jobs would be lost.

State lawmakers and governors have long sought to collect taxes on sales on reservations, but have been unsuccessful.

klein2Deputy Majority Leader Jeff Klein, D-Bronx, introduced the resolution on the Senate floor yesterday, saying the state loses hundreds of millions of dollars each year in uncollected tax revenue.

“At a time when New York State is struggling to fund vital programs and services, we cannot afford to lose any additional revenue from cigarette smugglers and online retailers who ship untaxed cigarettes via U.S. mail,” Klein said in a statement.

Here’s the resolution:

All Cigarette Trafficking Act (PACT)

WHEREAS, The systematic non-enforcement of New York tax laws has fueled a national and international criminal trade in untaxed cigarettes; the most damaging example is the State’s current non-enforcement policy on the taxation of cigarette sales by Native American reservation-based sellers to non-tribal customers; and

WHEREAS, The United States Supreme Court upheld New York State’s right to collect taxes on reservation sales to non-tribal customers in their 1994 decision Department of Taxation and Finance of New York et al. v. Milhelm Attea & Bros., Inc., et al.; however, more than 15 years later, New York has yet to collect these cigarette taxes, and is currently losing hundreds of millions of dollars a year; and

WHEREAS, This Legislative Body has passed laws explicitly requiring taxes to be collected on reservation sales, but many have not been enforced; and

WHEREAS, At a time when New York State is struggling financially to fund vital programs and services, this State cannot afford to lose any more cigarette tax revenue to cigarette smugglers and the businesses that sell untaxed cigarettes; and

WHEREAS, In 2000, New York State passed the first law of its kind in the nation prohibiting the direct shipment of untaxed cigarettes to consumers in an effort to reduce the internet trade in untaxed cigarettes and prevent remote sales to minors; and

WHEREAS, The State of New York has also been a leader in negotiating a multi-state agreement with credit card issuers to stop processing payments for illegal shipments of untaxed cigarettes; and

WHEREAS, Legislation is pending before the United States Congress that would shut down the internet trade in untaxed cigarettes by closing the remaining loophole that allows the United States Postal Service to deliver cigarettes to New York consumers; and

WHEREAS, The United States Senate passed the Prevent All Cigarette Trafficking Act (PACT) unanimously on March 11, 2010; currently, the the bill is before the House of Representatives; now, therefore, be it

RESOLVED, That the New York State Congressional delegation be and hereby is respectfully memorialized by this Legislative Body to enact the Prevent All Cigarette Trafficking Act (PACT); and be it further

RESOLVED, That copies of this Resolution, suitably engrossed, be transmitted to each member of the Congressional delegation from the State of New York.

 
 
 
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17 Responses to “Senate Resolution To Congress: Pass Ban On Cigarette Mail Shipments”


  1. Little Fog Horn

    I’d like to see Klein slip into his buckskin jacket, mount his old swayback in his native Bronx and head up 87 into indian country, and yell to the tribes about how they’d better get in line with all these taxes to their face. Better bring a lot of troopers, more than the three hundred or so that Custer thought sufficient.

  2. Kurt Goranson

    Really good read, some strong points were made.

  3. Carly

    I think this is complete non sense. Our government and the country that we are supose to love continues to take from native americans. They have already taken so much. They gave these people the right to have their own government so why not leave them alone. It’s not their fault that New York State ran themseleves in the ground by letting so many scumbags work the system and steal millions of dollars every year on the welfare system. And allowing NY officals to pay their limo drivers 60,000+ every year for a salary. NY is just trying to get themselves out of this rediculous debt they got themselves into by having idiots run our state into the ground. Once again our country is proving their greed. Why cant Natives have money and success? Why does the government have to keep shoving them back down as soon as the move up. Aren’t we supose to help the underdogs and the ones in need instead of distroying them? If so why are we at war protecting those people and not our own. Before people start agreeing on this bill you need to really look at what the bill really is. It’s not just to stop the shipping of cigarettes throught the usps it take away NATIVE SOVEREIGNTY. Something the government gave them because they took something else away. People seriously rethink what your doing because who knows maybe the government will want something from you and I hope they take it from you so you can feel how they feel.

  4. Lisa Weston-Bialy

    I want to thank Deputy Majority Leader Jeff Klein for introducing this important resolution to the floor. This measure is not about resticting or impinging on Native American rights or trade. It is solely about recouping losses that all New Yorkers suffer. The truth is that New York would have to charge a tax of over $10 on every pack of cigarettes to pay the medicaid costs associated with treating tobacco caused diseases. Those medicaid costs are currently paid for by all New york households paying income tax. How do you think the average New Yorker would feel about the tobacco tax if they knew that they pay, on average, $1000 per household for medicaid to cover the healthcare costs of those suffering from tobacco caused disease? As a New Yorker I know how I feel. The costs should be paid for by those who smoke and the tobacco industry. They lure and addict thousands of children to smoke every year.

  5. smartporpoise

    Liberals can justify everything, onerous laws, higher taxes, including even the occasional cost efficiency, so long as each and every one is addressed not at them, their unions and pets, but at any and everyone with whom they do not sleep. Last month, government jobs surpassed manufacturing jobs in the USA. Anything non-productive, they champion; everything productive is to them, anathema. It is a prescription for implosion. The glory that was Rome is of another day.

  6. ed1

    Maybe the indians didn’t yet read the letter from Klein stating that, for 50 grand, they can buy protection for themselves from the tax cavalry.

  7. Martin Peck

    Great post. I’ve been searching for this exact information for a while now. I’ll bookmark it in the public bookmarking sites to get you more clicks.

  8. Wayne

    Folks, this isn’t about health or taxes. This is just another step in the corporate takeover of the United States.

    All of the small companies took a huge hit, and many won’t recover. Meanwhile R.J. Reynolds, Liggett & Myers, Philip Morris, etc. retain their diverse storefront distribution system—minus the competition.

    Even the Senators from Virginia, North Carolina and Kentucky voted for the Prevent All Cigarette Trafficking bill. Get it?

  9. Jake

    I’ve even heard they are trying to ban ecigs from china…

  10. E-cigarettes

    Electronic cigarettes are a good alternative cand cheaper then traditional cigs and can still be shipped via mail.

  11. Zaposlitev

    tdkeufemwitxikyhkmdg, zaposlitev, PCzXUuu.

  12. Taxes are not the issue

    Limo Divers Protest Medicare Mediciad Reform Cuts, It’s rumored this issue could become part of the Tea Party movement. AmeriChoice Health also rumored to take a position on this issue. Recirculate those tax dollars? Help keep limo drivers working, benefits flowing and overpaid tax dollars remain in abuse.

    Medicare.gov as well as other Federal agency’s encourage you to report any fraudulent activities, yet, the same government agency’s were notified the way this company does business yet did nothing. Three years ago they were reported to these Federal agency’s and as of todays date not only were they allowed to continue doing business but were never charged once. Protected vendor status sure, politics sure, limited government budgets sure, Federal and State officals looking the other way sure, and rather then stop these activities a strong desire not to rock the boat previals. Even with the vast changes in the laws, budgets,a hands off policy remains, you tell me what’s wrong with this picture?

    The Government created this monster and now they don’t know what to do about it, like shooting yourself in your own foot etc. Tons of money to advance their national growth, it’s market positions, tons of money for political donations, tons of money to send 75 millIon back to its home office from New York state alone, tons of money to suppot National TV shows, tons of money to pay hugh State fines, tons of money to hire the very best law firms, tons of money to pay for bribes and kickbacks, tons of money for hugh salary’s and bonuses, all done on the back of the American tax payor, you see this company receives all it’s money from the Federal government. Should your tax dollars be held to a higher standard? Should our government agency’s responsible for there review and be held to that same standard? Should the IRS audit their corruption? Why has this company not been charged? How long can the buck be passed here in more ways then one?

    Hey, it’s your tax dollars don’t complain now.. then don’t complain later on…

    ps… I know times are tough for a lot us, but it would be great to have a free limo to go to the Doctors, Pharmacy, Movies, Grocery shopping, and given free tickets for the movies. Offered soda, pop corn and hotdogs, as well as have them receive free coupons for Grocery items…Kind of makes you wish qualified for Medicare and Mediciad right?

    For three years now, a woman has left her home in Poughkeepsie, New York, five days a week and taken a taxi to visit her child at St. Margaret’s Center, a nursing home for disabled children in Albany, New York. Each night, she rides home by taxi. That costs $300 a day. What dedication by taxpayers. That is right. Taxpayers have shelled out $196,000 over the past three years so that she can make this Poughkeepsie-Albany commute each day. Incredibly, state health officials defended this daily abuse of taxpayers. Could not the woman move to Albany? It would have been cheaper to buy her a Cadillac Escalade and have her drive herself. But under Medicaid’s incomprehensibly illogical rules, taxpayers had to give this woman a whopping $65,000 subsidy. We underpay doctors by 20% or more. But one — likely two — cab drivers have a gravy train going there. For New York state, the bill comes to $98,000 — with federal taxpayers shelling out another $98,000.

    Oh and this happens all over the place. Ambulances in Southern West Virginia became taxis as they shuttled people off to the drug store and the like — and then billed Medicaid. New York state Comptroller Thomas P. DiNapoli said the $196,000 taxi drive was part of at least $169 million in misspent funds. “We found the state Medicaid system is leaking millions of dollars,” DiNapoli told the Albany Times-Union. “Safeguards designed to protect the taxpayers by detecting waste, fraud and abuse keep failing.” Taxpayers finance $196,000 ride By CATHLEEN F. CROWLEY Staff Writer Published: 01:00 a.m., Wednesday, December 23, 2009

  13. Thats Important

    The Players and whats up for grabs. Profits United Health Group 2010 $4.293 billion
    Here are some other 2010 budget numbers: Wonder what it cost CMS ( Can’t Manage Shit) to operate each year. $453 billion Medicare/// $290 billion Medicaid ///$78.7 billion Department of Health and Human Services/// UnitedHealth Group Awarded TRICARE Managed Care Support Contract … Jul 13, 2009 … UnitedHealth Group Awarded TRICARE Managed Care Support Contract for more than $20.3 billion. BILLIONS awarded and still to be awarded United’s AmeriChoice unit is the largest government contractor administering state Medicaid programs for the poor and federally sponsored plans for children. AmeriChoice’s revenue rose 34% last year, to $6 billion.

    United Health Group and its subsidiarys must be exhausted from signing Corporate Integrity agreements each and every year and as reward for their violations well what happens? they are awarded more contracts and more money and maybe even an ambassadorship here and there and if anybody should question what the heck is going on, then send them a Elmo doll. (Americhoice sponsors Sesame Street) Up side, Billions to be made, down side pay some fines (cost of doing business) move on and nobody goes to jail or gets excluded from the game. Get up the next day put on your Elmo costume and its back to work as usual. WOW, even in the Casino world or Mob world this would be a no no, suprised Hollywood has not done a movie on this or maybe even great TV.
    Full Name: Wayne Berman Title: Vice-Chair; Finance Co-Chair; Adviser

    Over the course of three years, Berman’s lobbying firm was paid $660,000 to lobby on behalf of UnitedHealth subsidiary Americhoice, a managed care HMO providing health insurance to Medicaid, Medicare, and SCHIP recipients. Specifically, according to the lobbying report, they lobbied on Medicaid issues in the Deficit Reduction Act of 2005. [Americhoice Lobbying Reports 2004 – 2007; Americhoice.com] Berman Also Lobbied For “Absurdly Low” Rates for Medicaid Managed Care Companies to Pay Out of Network Hospitals. Also included in the DRA, and mentioned as a lobbying issue on Berman’s Americhoice lobbying report, was a provision setting rates managed care companies must pay to out-of-network providers—mainly hospital emergency rooms—for care received by Medicaid beneficiaries. Rather than forcing managed care companies to reimburse out-of-network hospitals an amount comparable to network providers, the legislation set the default amount to the state’s “fee-for-service rate,” which often is “absurdly low.” The provision thereby shifted financial responsibility for services to Medicaid beneficiaries from the managed care companies to the hospitals themselves, permitting managed care companies to rake in huge profits, while hospitals incurred added losses. [Modern Healthcare, 1/29/07; Text of S. 1932] To Save Money, Bill Cut Services to Medicaid Beneficiaries, But Left Managed Care Providers Untouched. Under the final budget package, substantial Medicaid spending cuts were achieved by imposing new premiums and increased co-payments on Medicaid beneficiaries; some costs were also shifted to the states, who in return were awarded new powers to drop coverage or reduce benefits to certain beneficiaries. In a letter to Senate Majority Leader Bill Frist, the AARP CEO decried the final bill, saying it “protects the pharmaceutical industry, the managed-care industry and other providers at the expense of low-income Medicaid beneficiaries.” [Inside CMS, 12/29/05; Los Angeles Times, 12/22/05; World Markets Analysis, 12/21/05; The Hill, 12/20/05]

  14. Dan Jones

    I think the Cigarette Trafficking could be passed ASAP, because it is avery important one!!

  15. 160

    Well put, Dan. What time’s the Mensa meeting?

  16. Gilbert Heidt

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  17. victoria sex

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