Goose, Gander, Tax

The Denver Post recently published an editorial supportive of lifting some state tax exemptions. While I don't have a position on every provision and am actually a little confused by their suggested by-product benefit of taxing paper bags and napkins, I do have to take umbrage at a Republican Senator's attempt to tax newspapers.

After all isn't the 'net mantra, "information should be free"?

Snip: Imagine It Without "Clunkers"

Cash for Clunkers wasn't a boon for sales-tax revenues, said Mark Rapin, president of the Fresno-Clovis New Car Dealers Association and vice president of Freedom Ford in Fresno, because many new vehicles sold during the July and August program were smaller and more energy-efficient -- and less expensive.

To reap sales tax dollars, "the dealers had to sell two or three times as many [of the smaller vehicles] compared with prior years," when more expensive vehicles such as large pickups and luxury vehicles were targeted by buyers, he said.

(Source)

Politically, A Hard Sell

Like a lot of states, Washington is facing an enormous budget shortfall and one of the proposals being floated by some Democrats would be to redefine candy as non-food, which would make it subject to sales tax.

Because such a change would only generate $28 million in its first year, a few legislators have suggested that the funds should be earmarked for public health initiatives, but as you might imagine, in between the cries about the potential affect on candy manufacturing jobs, they are already facing soundbites such as follows;

"We’re going to be putting a tax on 5- and 6-year-olds? I mean, come on," said Orcutt, of Kalama. "I think it’s a downright shame that we’ve gotten to the point where we actually have to tax kids to balance our budget."