CONGRESS IS CONSIDERING WAYS TO END SUBSIDIES TO SMOKE SHOPS ON INDIAN RESERVATIONS

Motorists who live near or travel past any number of Indian reservations around the country are familiar with the so-called smoke shops that dot the landscape and provide major income sources for tribal members lucky enough to have concessions.

They are called smoke shops because they primarily sell cheap cigarettes inside along with cheap gasoline outside. Both cost less for consumers because the reservation outlets don't collect federal taxes. But there's another reason the smoke shops undercut competition: HUD subsidies.

Right now HUD says there's nothing it can do about the subsidy arrangement, but a move in Congress would close that loophole. Meanwhile, U.S. taxpayers are subsidizing sales of cheap cigarettes.