WhyNot?

Tax Taxes

Category: Financial
Responses: 4 (2 in support, 1 neutral, 1 in opposition)
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Government believes it's effective to use some taxes to change people's behavior. Let's do the same to the government and give it a taste of it's own medicine: legislate taxes on taxes. Set them higher for certain taxes we see more negatively. This is easier and more elegant than trying to eliminate the tax. It could be done at the state or federal level; for example, the Michigan tax on the federal gasoline tax could be 20%. The revenues would go to a pool which would be periodically rebated to the people on an even per capita basis.

Mulder, Dec 17 2003

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You do realize that all taxes orgininate from the taxpayers pocket. If you tax a tax, guess who pays the tax twice???

If you idea is to shift what monies are taxed from a product to property or income or inventment divedends, then why not just change the way tax income is distributed. It seems rather circular to create legislation to try to mold that same legislative body into creating a specific style of legistlation...

However, please consider that if the tax is lowered on gasoline, it will be raised somewhere else to make up for the lower state (fed or town) income.

In the end, the only way to really lower taxes is to cut spending. Either live without services, or accept the taxes associated with those services.

adamsjosh, Dec 22 2003

That brings to mind an odd thought...what if a state were able to appropriate a percentage of a federal tax on individuals and corporations within its juristiction?

It would then be up to the state to use funds derived from that tax's tax as it saw fit. It could rebate the funds to those deemed to be taxed, or it could apply those funds to other things.

A good example would be to allow a state to redirect funds from a federal tax on gasoline to alternative energy projects that boost the local economy.

Another example could be to redirect a tax on specific exported items to subsidies for the industries that produce them.

Some sort of limit would need to be applied as to how much of a federal tax a state can appropriate; you don't want to starve the federal government of funds.

MikeMol, Oct 13 2004