By Joyce Kryszak
Buffalo, NY – The Seneca Nation of Indians released a study Tuesday that says the state's plan to tax tobacco products would devastate the Seneca's economy.
Twenty-seven thousand Seneca jobs would be lost if the state eventually goes through with its plan to tax non-Indian tobacco and gasoline sales. That's according to a new study commissioned by the Seneca Nation. The state has indefinitely delayed implementation of the plan. Seneca Nation Councilor Duane Ray says he hopes it never goes through.
"There's no other industry at this time that's going to take up that many jobs," Ray said. "Basically, we would be losing a lot of jobs."
The Seneca study, conducted by a former state economics official, says the tax plan would also cost the state about $500 million in lost business revenues and wages. But those figures are in stark contrast to a study released last month by a State Senate Committee. That report showed the state is losing as much as $1 billion dollars a year from untaxed products sold on Indian reservations to non-Indians.
Charles De Seve wrote the Seneca Nation study. He says the state's estimates are unrealistic and grossly overestimated. According to Deseve, the bulk of cigarette sales are over the Internet -- and would stay there.
"They're sophisticated Internet users," Deseve said. "They've already demonstrated that by purchasing cigarettes over the Internet. All they have to do is take their mouse, click to a site for either an Indian nation or another seller out-of-state that isn't taxed and they would avoid the tax. They're on the Internet to avoid the tax. They're going to continue to do that. The state will never get any of their revenue."
He says the state would only stand to collect about $27 million with the tax plan. But some state legislators are pushing to see the taxes collected. They say any additional revenue would go a long way toward solving the state's budget crisis.