LIPIPE
Well-known member
- Joined
- Dec 18, 2010
- Messages
- 972
- Reaction score
- 0
Tim: Thoughtful, scholarly, and well presented argument. What I believe we are witnessing is the failure of economic policy and the inability of government to stimulate economic recovery. Taxation is the only available tool governmental authorities have to generate revenue. Governments do not produce any goods nor sell any services. They are strictly cost centers and not revenue centers. All revenue is derived from taxation; it is not earned. We pay income tax when we earn money, sales tax when we spend it, real estate tax on our property, and inheritance tax when our relatives leave any money not otherwise spent or taxed. We also pay road, tunnel and bridge tolls, parking tickets, and other fees to government authorities that are also taxes under different titles such as use fees or penalty fees. Governmental agencies at all levels are up against a brick wall as to how to continue to generate revenues from a population suffering an economic catastrophic decline. Hence they bounce upon goodness and holiness. "Tobacco is bad for you, so let's tax it". Our good health is not the concern, but, rather the wave of the punishment finger for our transgression is a ruse to charge a tax. Gasoline tax is another issue out of control. In New York State we pay enormous per gallon tax for fuel which is 10% ethanol. We pay registration fees for the right to drive on public roads and we pump money into parking meters so that we may have the opportunity to leave our car on a street in order to go into a shop and spend money that is taxed again. If we dally for an extra minute or two, we get a summons and hence another tax. It is a game of gotcha. Revenue is raised from the backs of those who work. Unfortunately, now, many backs are broken and more than just a few are not working.
Cellaring is a code word for hoarding and with respect to tobacco that is not a sustainable solution. Unreasonable taxation on tobacco will lead to unreasonable taxation on every other taxable item and the end result that we are beginning to witness is a failed system. It is a dimwit band-aid on a spreading systemic infection. Our congressional representatives need to become realistic, about their powers of taxation and the backlash that they will create for idiot bills that they float when their constituents are beyond their fiscal breaking points.
Cellaring is a code word for hoarding and with respect to tobacco that is not a sustainable solution. Unreasonable taxation on tobacco will lead to unreasonable taxation on every other taxable item and the end result that we are beginning to witness is a failed system. It is a dimwit band-aid on a spreading systemic infection. Our congressional representatives need to become realistic, about their powers of taxation and the backlash that they will create for idiot bills that they float when their constituents are beyond their fiscal breaking points.