Crain’s New York Business Editorial

Lighting fire for cigarette taxes
Published: March 8, 2010

Editorial pages from around the state are sounding off in support of efforts to ensure that the state collects the $1 billion dollars in annual tax revenue lost from the sale of cigarettes to non-tribal members on Native American reservations.

Join our effort @
www.collectthetaxny.com

With the Paterson administration disintegrating, the Legislature nearly paralyzed and less than four weeks left for the state to close a $9 billion deficit, Albany will not be able to right its fiscal ship this month. Its immediate goal is to adopt a legal budget by April 1. Missing the deadline would trigger automatic 7.2% spending increases that would quickly exhaust state reserves.

One step, however, that does not require legislative consent is to collect sales taxes on cigarettes sold on Indian land. New York's failure to enforce the law has created a destructive black market that eats away at taxpayers' wallets and children's futures. Roughly $1 billion in tax revenue is lost annually.

Indians have the right to sell cigarettes tax-free on their reservations to other Indians. But they are not collecting taxes from anyone. Smokers and bootleggers from far and wide are drawn to 180 Indian outlets, which critics say account for an incredible one-third of all cigarettes sold in New York. Another 23,000 honest retailers collect taxes as required.

There is no justification for this double standard. The Seneca Nation, the primary beneficiary of this fundamental breakdown of government, makes only a feeble attempt to defend the status quo. The Senecas say that they paid their “fair share” when they lost most of their aboriginal lands hundreds of years ago, and that their economy is “treaty-protected.” But no treaty allows them to sell cigarettes tax-free to non-Indians.

The cost to New Yorkers is immense. The forsaken revenue could be used to lower property taxes, hire teachers, treat indigent patients or pay for any number of worthwhile programs. Instead, it enriches smugglers who park vans at Indian smoke shops and stuff them with six figures' worth of tobacco.

The administration signaled in January that it will end this madness. Regulations are being developed to allow for the collection of taxes from wholesalers upstream from the Indians. But there are strong doubts that the state will follow through, and not just because Gov. David Paterson was barely clinging to his job last week. Far stronger governors have abandoned similar efforts in the face of political pressure and protests. Tellingly, Mr. Paterson's 2010-2011 budget proposal assumes no additional revenue from these tobacco sales.

Yet there is reason for optimism. A campaign to pressure the administration to keep its promise was launched last week by interest groups, including health care and teachers unions, who have lobbied Albany effectively for years. They join advocates who have documented that cigarette taxes are the most effective way to deter children from getting started on nicotine. Business groups also back the effort, not just because it will boost sales for taxpaying retailers but because robust commerce requires uniform application of the law.

Mr. Paterson's rocky tenure is ending, but the equally applied collection of cigarette taxes would be a fine legacy for him to leave New Yorkers.

Unions begin effort to help workers at Fresh Direct fight for fair wages, benefits

NY Daily News column today: “If Fresh Direct is not anti-union and its workers do not want to join one, there is no reason for them not to remain neutral.”

NYC Public Advocate Bill de Blasio: “(Fresh Direct is) not providing benefits and wages to the workers commensurate to that amount of (public) subsidy.”

(New York City – February 18)  The Teamsters and United Food and Commercial Workers have begun an effort to help workers at online grocer Fresh Direct fight the company for fair wages and benefits.

The warehouse workers – more than 1,000 men and women from mostly immigrant, Latino, and African American communities – approached the unions because Fresh Direct forces overtime in cold, wet conditions, offers unaffordable benefits for their families, and pays $2.50 to $6.50 per hour less than the industry standard.

The unions began the public campaign this week after Fresh Direct refused to remain neutral as workers attempt to organize.  In the past, Fresh Direct has been accused by elected officials and workers of union-busting, including the use of federal immigration officers.

“The stories we are hearing from workers make you want to pound your fist,” said Teamsters Local 805 President Sandy Pope.  “Fresh Direct has gotten away with mistreating its employees for too long.  That ends now.”

Since its creation in 1999, Long Island City-based FreshDirect has received millions of dollars in city and state subsidies from New York taxpayers, allowing the company to significantly expand its business and post record profits.

In the Daily News today, New York City Public Advocate Bill de Blasio said Fresh Direct is “not providing benefits and wages to the workers commensurate to that amount of subsidy.”

"If you compare what workers at the company's warehouse make with unionized workers who do a similar job, there is a very substantial difference," de Blasio added.

In the article, columnist Albor Ruiz summarized: “If Fresh Direct is not anti-union and its workers do not want to join one, there is no reason for them not to remain neutral.”

The full text of the article is below.

City must attach strings to its economic aid

Article by Bill de Blassic / DIALY NEWS

Last month, the governor and legislature enacted long overdue changes to the rules governing the state's many authorities. A very interesting article on New York states spending ways.

To All Teamsters Local 805 Members

As of November 1, 2009 your medical and hospital coverage will be with

BlueCross/BlueShield.

You can locate participating doctors by calling 800-810-2583 or internet

@ www.empireblue.com.

Your Healthplex (dental) and your Express Script (prescription) coverage

DID NOT CHANGE.

Please keep the cards.

The Local 805 Welfare fund department has moved to Savasta and Company, 60 Broad Street, 37th Floor, New York and New York.

If you have any questions about your medical, hospital, prescription or dental
please call 212-308-4200.

The Local 805 Pension & Retirement department has moved to Savasta and Company, 60 Broad Street, 37th Floor,New York and New York.

If you have any questions about your pension years, check or update your information
please call 212-308-4200.

Teamsters Local 805

Mayor Bloomberg's School-Snack Bungle

published: October 13, 2009

Vending machine politics By Tom Robbins

Public health has always been Mike Bloomberg's strong suit, and last week, he pressed ahead with his latest initiative: new vending machines offering healthy snacks and low-calorie drinks in city schools. This is good policy, especially for obese-prone kids, and Bloomberg's team presented it as another instance of the good government New Yorkers have come to know and expect from their mayor.

Another Organizing Victory For Teamsters Local 805

"Another organizing victory for Teamsters Local 805: Drivers at Corporate Coffee in Westbury, NY voted 10-5 to join the Union last week. The drivers were referred to us by our members at International Coffee who joined the union last year. A big thanks to ICS shop steward Lloyd Clark who helped BA Enrique Martinez talk to drivers about the benefits of joining the union. "

Thanks, Sandy

Pension Crisis Calls for Teamster Action

May 22, 2009: Our union needs to mobilize Teamster members and retirees---in the halls of Congress and in the streets---to save our benefits. It’s time for decisive action.