Category Archives: economics

Caesar Can Get Bent

[BSMETER.GIF]What a crock.

"Did you buy anything through the Internet last year without paying sales tax at the time? If you did, state tax collectors warn that you’d better say so by April 17 and write a check–or else."

"Online purchases from sites like Amazon.com and eBay may seem to arrive in a state of untaxed bliss. But the law actually requires shoppers to pay their own state’s sales tax rate–the concept is called a ‘use tax‘–and voluntarily cough up the exact amount owed each year at tax time."

"Tax bureaucrats for years have lamented the difficulty of collecting use taxes on catalog and mail order sales. Now, with online shopping growing rapidly and nearing $100 billion a year in consumer sales, tax collectors are adopting more aggressive tactics."

"New York state has added a line to income tax returns requiring all residents to calculate how much they should pay on Internet, mail order or out-of-state purchases. The threat is explicit: Anyone who creatively underestimates will face stiff penalties if an audit occurs."

If Amazon.com, et al., start charging sales tax, I won’t be thrilled, but it won’t stop me from buying from stores on the net.  Why isn’t that being done?  Expecting folks to tax themselves is asinine.

Destruction of Capital

Via Dom Bettinelli:

“A highly-educated woman who chooses to stay at home and not to work – that is destruction of capital. If you receive the benefit of an expensive education at society’s expense, you should not be allowed to throw away that knowledge unpunished.” – Sharon Dijksma, a leading parliamentarian of the Dutch Labour Party

Dom sums up my feelings well.

“Yeah, because raising children is a selfish exercise that provides no benefit to society. Of course, this is the problem with socialized education since the socialists are then allowed to argue that since the government paid for something, they have a right to demand something in return. Where does this end? ‘We own you forever! Hahahaha!!'”

Commenter Ian raises an interesting counterpoint.

“I must agree with the Dutch to some extent. Consider: The Dutch invest in the education of their young (via exhorbitant taxes) to ostensibly increase the quality of their workforce. If the young accept that free education, they have an obligation to repay Caesar.”

I’d argue that they no obligation whatsoever. That’s what “free” means. IIRC, Germany has something more like what Ian is referring to. Every male citizen has a nine-month obligation to either be in the military or do civil service. If goverments wish something in return for education provided free of charge, they need to make it obligatory rather than whining when they don’t get back what they put in. To propose punishing stay-at-home moms is especially petty. Commenter Christian Martin explains.

“Children who get ‘primary caregiver’ attention from someone who loves them (as opposed to a paid employee) come out smarter and more productive in study after study than children who do not.”

“Furthermore, those who stay at home are more likely to have larger families, which will provide a future income base upon which to build the financial structure to assist this politician and his cronies when they reach retirement age.”

“Stay at home parents also provide for their children many of the services that otherwise would be paid for by the state, so the stay at home mom actually lowers society’s financial burden for things like education and healthcare.”

Immigration Debate

I’ve been doing a little thinking about the current immigration debate. The two main lines of argument that seem to be dominating discussions are as follows (in broad strokes).

  1. Illegal immigrants are hard workers who just want a piece of the American pie and are willing to do jobs that Americans aren’t willing to do. Leave them alone.

  2. Illegal immigrants don’t pay taxes and heavily burden America’s educational and medical services. They’re also a security risk. Kick them out.

I think both are right and both are wrong.

Continue reading

Screwed Up Priorities

Which of these is more likely to help poor people, cheap groceries or cheap cigarettes? Groceries, right? Tell that to Mississippi’s Republican Gov. Haley Barbour.

Addendum 03/20/06:  Since Publius doesn’t care for my "self-righteous indignation over an evil, greedy Republican supposedly screwing the little guy to benefit evil, murderous tobacco companies", I’ve decided to explain what I thought was so obviously screwed up in these priorities.  I have no desire to "soak the poor while at the same time looking liberal".  I do, however, wish to be compassionate, and I do not believe that Gov. Barbour made a compassionate choice.

Given a choice between lowering taxes on necessities, like groceries, or a non-necessity that causes health problems, some deadly, for users and those around them, which cause increases in everyone’s insurance premiums, I’d think anyone with more than sawdust for brains would choose groceries.  Publius and some folks in the comboxes have suggested that no matter how steep the tax on smokes got, poor people would still buy them, which certainly wouldn’t help them become any less poor.  If all we were talking about was raising the tobacco tax, I might agree with them that little good would come from it.  However, Gov. Barbour had an opportunity to sign a bill into law that would not only raise the tobacco tax, but also lower the grovery tax.  It seems to me that at worst poor people would break even in that scenario; what they’d save on groveries, they’d spend on smokes.  Meanwhile, those who don’t smoke might be able to buy something nutricious for their families.  On a side note, I’d like to point out that PA, a state whose legislature is full of selfish asshats, does at least one thing right by having the decency to not tax groceries.  Taxing necessities – how retarded is that?!?

"I have a close family member who would really feel the crunch if over 80¢ were added to the cigarette tax in Virginia — and there’s no way she’d quit over it."  So says Publius.  "In Chicago, where I spent last week, a pack of cheap smokes is $7.50. Yet the po’ folks there still buy fags before food." So says Tom Smith.  "[I]if it means cutting out just one meal a day to buy a pack of smokes… i would have done it and i know plenty other smokers who would too. Case in point: i work with several guys who never have enough money for lunch, but they always have plenty of smokes." So says Squat.

Am I supposed to have sympathy for such fools?  I feel sad for them that they’d rather smoke away their lives than eat and I’ll pray that they come to their senses.  I’ll also pray that tobacco companies take it up the wazoo for deliberately addicting people.  I feel bad that they’ve been exploited and manipulated.  However, they still have free will.  As far as I’m concerned, a tobacco tax is a stupidity tax.  If you can’t figure out that food is more important than smokes, don’t come whining to me about how you don’t have enough money to feed yourself.  Forest gump had it right.; stupid is as stupid does.

That said, I’m not a fan of "sin taxes", i.e. taxes on undesirable behavior.  I prefer tax relief for desirable behavior.  That’s easier to implement in income taxes than sales taxes, though.  Still, I don’t much care for the government chiding folks for smoking, drinking exessively, etc. while profiting from those same activities.  In the case of tobacco, perhaps a decent comprimise would be to use cigarette tax proceeds for anti-smoking and smoking cessation programs.

One more thing: don’t give me a sob story about how taxing cigarettes hurts the tobacco industry.  I don’t care.  Making abortion illegal, or at least rarer, would hurt the abortion industry.  Boo-hoo.  I wouldn’t give a flying fig if Big Tobacco just curled up and died.

Lining Their Pockets

The pay raise PA legislators gave themselves was bad enough as it was. I disagreed with their excuses about cost of living increases, but at least it was an attempt at a defensible reason for being so generous to themselves. Then I read this.

"Starting in December 2006, an automatic cost-of-living adjustment will be tacked on to legislators' pay raises, state officials said yesterday. It means that for lawmakers who are elected in November 2006, the salary increase will be even larger than the previously reported 16 percent to 34 percent."

….

"But in addition to the base salaries, the pay raise law contains an automatic cost-of-living boost that is set to take effect Dec. 1, 2006, House Parliamentarian Clancy Myer confirmed yesterday. A new COLA increase also will occur each successive Dec. 1, he added."

"The pay raise law states that legislators' base salaries "shall be increased by the greater of" two alternative methods."

Operation Cleansweep is looking better and better…