After consistently complaining about the state's failure to enforce tax laws on Indian reservation retailers who sell cigarettes to non-Indians, Mayor Bloomberg took action yesterday, filing a lawsuit in federal court in Brooklyn against eight smoke shops on the 50-acre Poospatuck reservation in Mastic, Long Island. The suit accuses the stores of selling cigarettes to bootleggers who smuggle the cartons off the reservation to sell them in the city, saving smokers a $4.25 per-pack tax. ...

A member of the House Committee on Homeland Security will be releasing a report that alleges cigarettes sold on Indian reservations ultimately help fund Hamas and Hezbollah. The report, "Tobacco and Terror," from the staff of Republican Representative Peter King, illustrates how bootleggers could buy tons of cigarettes from Indian reservations, where cigarettes are not taxed. Here's a sample sentence from the report: “A motivated terrorist cell could generate sufficient funds to carry out another......