Excise taxes: Look at Them with a Close Eye and Adios.

The Federal tax excise taxes system is an often overlooked source of Federal revenue. Among the goods and services subject to U.S. excise taxes are motor fuels, alcoholic beverages, tobacco products, firearms, air and ship transportation, environmentally hazardous products, coal, wagers and alot more. There is even an excise tax on indoor tanning services. Have you looked at the tax portion of your telephone bill lately? Whoa, that is a tax magnet. 

Excise taxes try to either regulate an activity, fund a particular federal program or just pad the government fisk. They are a cost of doing business and their burden is ultimately passed on to consumers. 

I have been doing some work on tax reform and it occurs to me that these stealth innocuous taxes should be examined very closely. I am certainly not against the concept of user taxes but in most cases I would just repeal them for the most part. The only one I can see surviving scrutiny is the gasoline tax which I think should be gradually but substantially increased to provide funds for all type of infrastructure and for energy conservation. The rest of them--Adios. A relic of the past. 

Many State and local governments are in a financial crunch. Most of their pain is of their own making and now that the Stimulus money to support and subsidized them (and their unions) has dried up, officials have to face a new reality.

Here is a solution to help these beleaguered governments make a transition to fiscal sanity. (although many of them are not worthy) Get rid of the Federal sin excise taxes and let the states have the dough and make the decision on how much they want to tax their citizens on tobacco and alcohol. They do it already do it, plus they could use the extra money. It would reduce duplicate taxes and paperwork. 

As we say at my house, just an idea.

 

Comments

[freelance writers]

The constituents must follow the government in regarding to pay their own taxes.