Politicians love taxes. Obviously, they can’t say this out loud so they yammer about safety nets and infrastructure and equity, all of which concepts imply raising taxes, but they don’t actually say the “T” word aloud. When asked how he plans to pay for this or that vote-getting scheme, every successful politician has a song and dance routine designed to assure you that everyone else will pay. You, personally, will be left unscathed.
Given the opportunity, I think politicians almost anywhere would raise taxes to 100%, then redistribute the money according to “need.” This would, of course, insure a just and equitable society (and also pretty much ensure that the politicians themselves were set for life). The Soviets, East Germans, Poles, Czechoslovakians, Romanians, etc. tried this concept but it didn’t work. Not that it was a bad idea; they just didn’t know how to implement it properly.
The problem, of course, is that you have to tax the poor. Why, because:
- There just aren’t enough rich people around, as it is.
- When taxes increase enough, the rich disappear. They move out of the state, out of the country, into the underground economy, or just quit and reflect on the part of the Constitution that prohibits ‘involuntary servitude.’
What’s a tax and spend liberal or a tax and spend conservative to do? (Keep in mind that the only real difference between liberals and conservatives when it comes to taxes is who gets the money).
Well, the poor do have money. It just doesn’t show up in places where it’s an easy mark for the revenuers: payrolls, bank accounts, real estate, 401k’s, etc. It tends to be hidden in pain sight, either in cash or personal property.
Where do the poor get their money? Who cares? Whether it’s from welfare, stealing, selling drugs, wholesaling food stamps, or a minimum-wage job, the poor have money. Individually, not a lot, perhaps. But there are so many of them (according to the government-controlled statistics, anyway), that if you could just squeeze a little out of each of them, you could balance a budget.
The answer is Tax the Poor.
But how? Easy: sales, use, and excise (e.g., tobacco, liquor, gasoline, communications, entertainment) taxes.
Every one knows that even though the poor have no income (and by inference, no money) they own cars and HDTVs, smoke and drink more than most, and don’t seem to have too much trouble paying their cell phone bills, buying gasoline, or tickets to Avatar.
And they’re buying shit all the time. Those folks wheeling bales of Pampers, cases of Diet Coke, Blu-Ray discs, and extra large bags of Ol’ Roy dog food out of WalMart aren’t rich, but they’ve got money to spend.
So the trick is for the revenuers to rake off their share when the sucker opens his wallet. And that’s exactly what they’re doing. There are few places left in this country where they don’t have sales taxes and for good reason: because no matter how poor some schmuck is, if he wants a ham sandwich or a box of nails he’s going to have to pay a tax to get it.
And the sales taxes keep going up! Here we are with unemployment at 10% nationally, over 20% in some locations, and the politicians are whining because they don’t have enough money. After they totally fucked up the economy (and this was a bi-partisan effort), ruined many taxpayers’ life’s savings, shipped good jobs overseas to avoid EPA, OSHA, and the rest of the regulatory pirates, the politicians have the balls to tell us to ‘economize’ or learn to ‘live on a little less.’
And what are they doing? Economizing? Living on less? Hell no, they’re raising taxes. The economy is in the shitter and the politicians are; a) too dumb to figure out why they don’t have as much money this year, and; b) too arrogant to think that, like their constituents they need to learn to live on less.
And on whom do they raise taxes? THE POOR. Why? Because it’s a slam dunk. What’s another penny or two out of a dollar?
And the really good news is that most of the poor, because they attended, (but probably did not finish) our public schools, have no idea that sales and excise taxes are the most inequitable and regressive taxes of them all. They are specifically engineered to place a disproportionate burden on the poor.
I used to hate sales taxes. Now I love ‘em. I’m not rich, but I’m not poor either. I love to see the shoppers at Best Buy getting nicked an extra $80-120 when they buy a big-screen TV. I love to see welfare folks paying an extra 80 cents for a bag of dog food.
I try to buy as much possible on-line. Even if the shipping costs are equal to the sales taxes I would have paid locally, I figure I’m paying Fed-Ex an honest dollar for an honest service.
Rule for living: If it costs more than $25 and weighs less than 200 lbs., buy it on line out of state. There are constitutional issues that have prevented the states from closing this loophole. The states will win eventually because, in the end, the constitution always loses. But, for a while, you can take comfort in ordering from Amazon and avoiding the ‘poor tax.’
What’s the excise tax on beer in your state? I’ll bet you have no idea.
Below is a small sampling of initiatives underway to raise sales taxes. If your jurisdiction isn’t on here it’s only because the size of the complete list would run hundreds of pages.
- The St. Louis [MO] County Council voted Monday to put a half-cent sales tax increase on the April 2010 ballot.
- City leaders in Jenks [OK] have scheduled a series of public meetings to discuss a sales tax increase.
- The least harmful tax to job growth and economic development is a broad based sales tax,” says Rhode Island gubernatorial candidate Lincoln Chafee. Rhode Island’s sales tax is already the nation’s second highest, surpassed by only California.
- In Olympia [WA] lawmakers are considering extending the state sales tax to consumer services.
- Ottawa County [OH] officials are making moves to increase the sales tax in the county from 6.5 percent to 6.75 percent.
- A 1 percent sales tax increase already is in place in Indiana.
- The Tempe [AZ] city council voted 4-2 to refer a proposed sales tax increase to the general election ballot.
- Jackson Hole [WY] town and county voters may be asked whether they want to increase the sales tax from 6 percent to 7 percent.
- Jefferson [OH] county commissioners voted to hold public hearings on raising the county’s sales and use tax rate to 7 percent.
- Baldwin County [AL] community leaders are campaigning to gain approval 1-percent sales tax increase that could help lessen the current financial crunch.
- Oregon Measure 67 alone boosts state business taxes by more than 40 percent — the largest share of it from the new gross sales tax on corporations that have no taxable income. [Oregon has figured out how to tax POOR corporations!]
- Kennett [MO] is currently pushing to raise the total sales tax rate to 6.475 percent.
- The sales tax in Rowan County [NC] will increase to 8 percent.
- Milwaukee County could raise its sales tax a half cent under legislation that cleared its first hurdle Tuesday.
- Earlier this year, Massachusetts state lawmakers increased the sales tax rate to 6.25 percent from 5 percent and eliminated a sales-tax exemption for alcohol sales.
- Michigan business leaders would like to slice the state’s main business tax roughly in half. The lost money would be replaced by extending the state sales tax to a host of services.
- El Paso [TX] Rep. Joe Pickett said he will ask for a gas tax that would index the rate to inflation. As the cost of living, for instance, goes up, so too would the gas tax rate. [Joe, are Texans so dumb that they don't realize that, as inflation increases, tax revenues will increase automatically without a tax rate increase?]
- The Denver Regional Transportation District wants voters were to approve an additional 0.4 percent RTD sales tax.
- Debate over Cook County Board President Todd Stroger’s penny sales tax increase — even though it was partially repealed late last year — just won’t die down.
- Gov. Sonny Perdue proposed asking Georgians to boost the sales tax by one-cent.
- New Mexico proposes expanding sales tax.
- Arizona Gov. Jan Brewer is asking lawmakers to pass a 1-cent “temporary” increase in the state sales tax and expanding the tax to include repair services, such as for autos or appliances. [Quick, name a temporary tax that quietly expired.]
- South Dakota is considering an increase of 1 percentage point in its sales tax.
- Kansas Gov. Mark Parkinson is proposing a 1-percentage point sales tax to help rescue the recession-battered state budget from a $400 million deficit. He also proposes increasing cigarette taxes by 55 cents a pack and quadrupling the tax on other tobacco products.
Counting Cows
January 21, 2010Probably the most underrated political controversy of 2010 is yet to come: the decennial census required by the Constitution. Everybody, and I mean everybody, eventually will claim their constituency, be it a city or state, ethnic minority or majority, religious group, occupational group or whatever, is underrepresented by the census data. Why? Because the census is about votes and money.
The original reason for the census was to determine how the votes were distributed among the states in the US House of Representatives. Votes mean power in congress so the individual states want to show the largest possible (or even impossible) numbers to ensure as many representatives as they can get. Here’s a list of those likely to gain, or lose, representatives in the 435-member House:
Arizona +2
Illinois -1
Florida +1
Georgia +1
Iowa -1
Louisiana -1
Massachusetts -1
Michigan -1
Minnesota -1
Nevada +1
New Jersey -1
New York -1
Ohio -2
Pennsylvania -1
South Carolina +1
Texas +3
Utah +1
Washington +1
And don’t forget, these same numbers impact the votes in the Electoral College. Our president and Vice President are chosen, not by the total popular vote of the nation, but, in most states, by a winner-take-all bloc of votes cast for the winning candidate from the state. Think about the politics of the above states and it will occur to you that the Republicans likely will benefit from the 2010 census.
For this reason, and many others, advocacy groups of every stripe already are putting out propaganda about bias and under counting in the census. A review of news stories over the past 30 days reveals over 400 claims, even before the census has started, of under counts that will cheat these or those people out of votes or money or both. Keep in mind that about $400 billion of the federal budget is distributed to states, counties, and municipalities based on census data.
Some examples:
College students. Under census rules, people are considered residents of the place where they live and sleep most of the time. Many college students are away from their “homes” for 9 months out of the year and will be on April 1, 2010 which is the official counting day (though the census actually takes months). Since one “head” is worth about $3500 a year in federal benefits, localities are eager to claim college students as “residents.”
The National Association of Latino Elected and Appointed Officials claims Latinos will be under counted by at least a million. The National Coalition of Latino Clergy and Christian Leaders agrees. Others say, that because of the high number of illegal Latinos in the US and their general distrust of government, the Latino under count will run into the millions. For the record, citizenship is NOT a question asked by the census.
The Florida Legislative Black Caucus says blacks will be under counted in that state.
Marc Morial, president of the National Urban League, and the Revs. Al Sharpton and Jesse Jackson, claim blacks are always under counted everywhere.
This same bunch also are claiming that prisoners are being counted as residents of the town where the prison is located rather than their “hometowns” thus depriving their home neighborhoods of federal money.
The Arab American Action Network complains that there isn’t a race category for Arabs on the census form. Opponents claim that ‘Arab’ is not a race.
The Korea Central Daily News claims Koreans will be under counted because many of them are in the country illegally and are afraid even to talk to a census taker.
According to Pinoy, Filipinos will be under counted because they fear they will be called for jury duty or other civic responsibilities.
The India Tribune claims Indians will avoid the census and be under counted because many are illegals.
Extra claims teenagers and young adults will be under counted because they are afraid to give any information to the government. (These kids are smarter than I thought).
The Polish Daily News claims Poles will be under counted because many do not read English and will not realize the importance of the census forms when they arrive in the mail.
Utah claims its citizens are under counted because many are Mormons who are out of the country on church missions.
American Indians are complaining that they are under counted for a variety of reasons. I suspect it has something to do with their receiving more federal money per capita than virtually any other identifiable group.
Cities with large homeless populations fear an under count for obvious reasons.
A Pew Research Center report says that as many as 1 in 5 Americans will not respond to the census for a variety of reasons, most having to do with distrust of what the government might do with the data. (Although raw census data are supposed to be kept secret for 72 years, recent abuses of private data by other federal agencies give people no particular reason to trust the Census Bureau).
The list goes on and on. You can bet that the census data will be argued and challenged in court for years to come particularly by the states that are likely to lose representatives and electoral votes: Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, and Pennsylvania. Too close to call right now is the possibility that Texas may gain 4 seats, instead of 3, and California may lose a seat instead of remaining even.
Looks like another banner year for lawyers.
(Note: The publications cited above are all US domestic publications, most of which represent ethnic constituencies).