With most state and local governments caught between a budget crunch and possible receivership (bankruptcy), it would appear that many of them devising some fairly outlandish proposals to boost tax revenues. Depending on your point of view, these sin tax proposals range from making reasonably good sense to the asinine.
Having watched the debates at length for several months now, here is a short list of goods/services that have a fairly good chance of falling under the taxman’s purview in the near future.
As the list suggests, it would appear that the government (federal, state, or local) is determined to tax anything that might give us, or result in, a little pleasure.
Just for fun, I thought would be a clever exercise to identify any other items that the government could tax that might be “bad” for us.
Again, I’m not rallying support for or against any of these, but just throwing ideas on to the table that might make a little more sense, might generate more revenue, or lessen the impact on socioeconomic groups that can’t afford to take the hit.
If you have more ideas, please leave them in the comments section below.
Photo by lucyfrench123
What states have car taxes??
For the first set I’m up for 1,2,4,5… 3 i’m against cuz I dislike the smell of marijuana…
For the second set 1/2/3 seems to just be a progression of green tax. That makes sense… include the environmental cost in the pricing.
4 is another “sin tax” with 5 being an idiot tax.
I guess I’d be supportive of green taxes. And idiot taxes. Tho the latter could be seen as regressive… and possible the same for the green taxes…
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Matt SF Reply:
March 30th, 2010 at 10:51 am
North Carolina has one. It’s a personal property tax based on the car’s value that is due every year. If you don’t pay, they block registration on your car.
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Porn tax is interesting. It’s hard to tax something that most people get for free online.
In that same vein… Internet tax or Facebook tax.
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Matt SF Reply:
March 30th, 2010 at 10:53 am
Yeah, that would be tough to figure out. That’s why I suggested taxing sex related domain names. Although, the porn webmasters would almost certainly revolt, but if you’re goal is to apply sin taxes across the board, porn is the most logical place to start.
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Interesting. California is considering legalizing marijuana with the upside that they will get tax revenue from it. However, I think they fail to realize that should the drug become legal the price is certainly going to plummet. For now the only thing keeping it from costing more than a houseplant will be the other states that haven’t legalized it yet, but once that happens say goodbye to revenue.
Taxes on items are usually a short term solution, but can discourage certain behaviors. We might do better by repealling tax incentives on mortgages of second homes, taxing American businesses for every job they send overseas, taxing businesses for each HB1 visa they use, and maybe making the capital gains tax a progressive one so middle class americans can still get a good tax break out of the stock market but hedge fund managers raking it millions every year will have to pay a higher portion.
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Matt SF Reply:
March 30th, 2010 at 11:05 am
Marijuana prices will certainly fall. Many of the northern California growers are actually protesting the proposed marijuana legalization bills as they’re written because they fear that Big Tobacco will undercut their prices using more efficient growing and manufacturing techniques.
You bring up an important point that I nearly included into the post: instead of applying taxes to consumers, why not remove the tax breaks and subsidies given to the corporations making them. Let the free market be free, and when the prices on junk food and soda spike, that could have the same effect.
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Abigail Reply:
March 30th, 2010 at 7:06 pm
See, now, I always thought the solution to the marijuana pricing thing was simple: Let the government grow it. (Ok, all you anti-big-guv folks just give me a minute to explain.)
In Washington, all liquor is run by the state — and certainly it can be the state or county or even city government that controls it all — and so the price remains steady. Things still went on sale and such.
We could task the state (or county or city) with growing and supplying the marijuana. It would create plenty of jobs and ensure that certain standards are maintained: ie, it’s not laced with anything weird. It would also be somewhat more direct than a basic tax.
And I should add: I’m not a pothead. I really don’t like the stuff much. I just think that it’s about time we legalized it, given how much less dangerous it is than both alcohol and tobacco — especially if it means more revenue for the government. (And think how many teens will actually care about botany class finally!)
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I agree with strip club and porn taxes! But then again I don’t partake in any of those things. Personally the only tax I would mind is the bottled water tax considering that’s that only item on the list I use. I don’t drink soda or eat junk food.
I also have a novel idea, what about cutting wasteful spending within the various sectors of government? I’m sure there’s plenty of that to go around…
Also how about some furlough days… A few of my friends had these, in addition to a pay freeze, maybe the government should try some of the fixes that the private industry is doing.
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Matt SF Reply:
April 1st, 2010 at 12:20 pm
Yeah, it’s funny how the “don’t tax the things I use” concept works in our individual minds. I wouldn’t like broadband tax considering how much I use the net, but to each his/her own.
I know a bottled water tax could be fairly popular considering how expensive it is compared to tap water, but in cities like Los Angeles (where the water quality is pretty bad by my standards), I’m not sure it will be all that popular.
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myfinancialobjectives Reply:
April 2nd, 2010 at 7:43 am
Would a tax on broadband also apply to 3g? Would a broadband tax affect more/less people than a bottled water tax?
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Matt SF Reply:
April 2nd, 2010 at 2:58 pm
All good questions, and I think that’s where the politics (and lobbyist money) would cripple any such debates.
Since the government is pushing something of a “broadband for all” agenda, I’m doubtful we would see a big tax on residential internet service. But as you just mentioned, perhaps mobile broadband could be a prime short term target.
Another that’s been passed around is a “trader tax” where you tax daytraders or huge volume traders (say $1 million or more) a small fee per trade. Makes sense, but those traders also have the money to pay lobbyists, so who knows.
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myfinancialobjectives Reply:
April 5th, 2010 at 7:34 am
Wow a day trader’s tax, that would really piss off them off. Then again, any of these taxes will piss off the recipients of them so, I guess it almost becomes “Which tax will piss off the least amount of people”.
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11:25 pm
You missed the biggest one yet…. breathing tax!
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Matt SF Reply:
March 30th, 2010 at 10:42 am
Don’t we already pay that? It’s called FICA!
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