Since New York's cigarette taxes were increased in June, state officials have been learning a lesson that's been in the public eye since the failure of prohibition.
When you make something harder to get hold of, people will obtain it illegally - something the government should have learned half a century ago.
Modern bootleg smokes have been dubbed $5 Men, replacing bathtub gin of the 1920s with $.50 "loosies" (loose cigarettes) and $5 packs of Newports.
These bootleg cigarettes are replacing the Marlboros and Virginia Slims commonly found on corner store shelves. The faux puffs come with a substantial price shave, thanks to their sans-tax status.
The cigarettes being sold are purchased on reservations in New York to excise the nation's supremely high taxes on cigarettes. Officials in New York City, the area hit hardest by the influx of $5 Men, have filed civil suits against smoke shops on the nearby Poospatuk reservation.
A bill has been passed by New York legislators that would resume the enforcement of cigarette taxes on reservations. Gov. David Patterson has said that he wants to negotiate with the tribes prior to signing the bill.
Unless lawmakers are prepared to infringe further upon the autonomy of a sovereign nation, they must acknowledge that their choice is either to lower the taxes on cigarettes or accept that modern bootlegging is here to stay.
Negotiating with tribes, instating more tax, will only breed demand, and in the case of cigarettes, a more potent resistance.
Photo: Courtesy of Laron Fomby
