We previously noted New York City’s “roll your own tobacco shops” which were not much more than a blatant attempt to get around cigarette taxes. (I thought I linked to this at the time, but I can’t find the link now; the shops reached a settlement with the city and closed down, last I heard.)
Well, now the Indian tribes have gotten into the act. You see, the tribes used to buy smokes wholesale from distributors and resell them, tax free. But the state of New York went to court, and got a ruling that requires the wholesalers to collect taxes.
Now the Indian tribes are making their own brands of cigarettes.
And there’s rent seeking: