Buffalo News: Letter to Editor – Non-smokers foot the bill for tax-free tobacco sales
Published:September 02 2010, 12:00 AM
There has been a lot of discussion in regard to the collection of taxes on tobacco sales. People feel it is important to protect these tax-free sales. After all, who wants to pay taxes?
I think it is critical to understand that there is not a tax-free sale occurring. The billion-dollar tax bill that goes uncollected is simply picked up by the remainder of New York State citizens. So if you do not smoke, you are helping to pay for someone else’s cigarettes; you are subsidizing that sale. Every New Yorker pays a cost to cover these cigarette sales.
The state budget does not change because these taxes go uncollected. New York State just raises all other residents’ taxes or reduces services to cover that shortfall. The taxes are simply reassessed to all state residents to cover these untaxed sales.
This is a difficult issue because it leaves me looking like an advocate for higher taxes. I am not. I believe all New Yorkers are overtaxed, but I am in favor of fairness.
We did not volunteer to collect taxes for the state; we were told we had to. The state should not allow for retailers to be penalized simply because they are following the law and doing what they are told.
The next time someone tells you to protect the tax-free sales, remember that what you are being told is “thank you for buying my smokes!”
Michael F. Newman
Executive Vice-President Noco Express