A Voice from the Eastern Door
Dear Editor,
I have received feedback on the issue of gasoline-pricing in Akwesasne and wished to share these comments. The interest in general in tax-immune businesses is strong, persistent, and growing, both on and off-territory.
Within the community, the ability of tax-immune Akwesasne business-people to exercise collective rights at the commercial level is understood, accepted and appreciated. The sheer number of businesses existing within Akwesasne speaks to this. According to visiting Tribal Nation economic specialists, no other Indigenous territory compares to the economic breadth and diversity of Akwesasne, and this is evidenced by not only the commercial displays of the community businesses, but by the absence of Tribally-owned businesses, which are so predominant in other North American indigenous communities. The visiting business specialists have lamented that their own federal trust-land status communities do not reflect the level of small business diversity that the original land status of Akwesasne offers, perhaps because of this difference.
The levels of success of these many businesses widely differ, of course. The related issue of the Akwesasne gasoline retailers livelihoods has been a topic of some discussion.
Both on and off-territory, there is a perception that if you own a gas station, that you are not just well-off, but extremely wealthy. The tendency to do this is human nature, especially in an era of record-setting oil prices. Let us look at several Akwesasne gas stations that are either closed or can no longer afford to offer gas because they cannot make ends meet. An abundance of competition, increasing wages, increasing utility costs, the increased cost of goods sold, coupled with decreasing profit margins, have forced these retailers to close their doors.
This is not a suggestion that Akwesasne gasoline retailers are poor, only that a number of these businesses are struggling and that those that appear to be well off have in many cases diversified their interests into other businesses that can help subsidize the loss of earnings from their retail gas outlet. For instance, BJ’s Warehouse in Massena agrees to lose money on gas sales to bring customers in. In marketing terms, this is called a “loss leader.” It is a deliberate and strategic use of inventory.
Off-territory interest in Akwesasne business owners also has been highlighted recently. On-territory prices are closer to those outside Akwesasne than in years past, due in large measure to the New York State Association of Convenience Stores (NYACS). This organization hysterically notified New York State legislators in Albany that the unfair tax advantage of Indian retailers is forcing them out of business.
A survey of these claims will find locally that more stations have closed within Akwesasne than the new ones that continue to open in the surrounding communities. NYACS, a special-interest group, fails to recognize the sovereign and collective right for Akwesasne business-owners to offer goods and services free of New York State taxes whether it be to Akwesasronon or to non-natives alike. What NYACS is proposing is a two-tier level of pricing that is racially based, and could open Akwesasne business-owners up to charges of discrimination. The Convenience Store Association constantly lobbies New York State politicians to make laws which are not only contrary to treaty rights, but are unbearable to Akwesasne retailers. From the attempts to force Akwesasne businesses to collect New York State sales tax, pre-tax goods from suppliers, or force residents to have a coupon to obtain their monthly quota of gas and cigarettes; NYACS is not attempting to “level the playing field”, but is actually attempting to remove Akwesasne businesses from the “field” altogether. This is the challenge that has been made. It is also a challenge which must be met, for the sake of the Akwesasne economy.
The rights of Akwesasne Mohawk Territory must be preserved, not diminished. State Senate Majority Leader Joseph Bruno recently stated that businesses in New York State were obligated to paying New York sales taxes, including businesses on Indian reservations, or they faced prosecution.
Illegal taxation goes against the way that it has always been in the Land Where the Partridge Drums. Unfair legislation will be forced to run the gauntlet of resistance in Akwesasne, as well as other North American Iroquois communities. The unwary New York State politicians who desire incarceration for Akwesasne business-people, over self-reliance and success, must ask themselves, does the cost exceed the value?
The days when there was just one gas pump in Akwesasne, and little entrepreneurial opportunity are thankfully past. Those first businesses were the foundation for today’s shining business climate. The pressure on Akwesasne to take a step back economically truly does exist. However, the outcome of those efforts leaves little room to spare if Akwesasne wishes to remain the current economic powerhouse of the North Country. More automobile fuel will be spent traveling to Massena and Malone to do the shopping that once was able to be done in Akwesasne.
-Respectfully Submitted,
Chaz Kader
Executive Director,
Mohawk Chamber of Commerce at Akwesasne
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