Quote:
Originally Posted by Angeline
You can't selectively raise tax on staple goods like meat or fat, the outcry would drive them out of office.
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It's not hard to do at all. You raise the taxes on that stuff the same way they get most taxes past most people - by not letting the effect of the tax be obvious.
Say Sheila, who's single without kids, makes $9/hr. If she got the entire thing every week she would get a check for a whopping total of $360 a week on which she would have to cover all of her expenses including her rent, food, car insurance, you name it.
What if, in addition to all of that, she had to write a check to the Federal Government for $100. How long do you think people would tolerate that?
So instead, the Federal Government takes out something like $240 a month before she ever sees it and Sheila gets a check instead for about $305 instead. As a result, she doesn't realize the impact or what that extra $240 a month, which is very possibly more than she is paying for her share of the rent where she is living, would mean for her standard of living. If she were overweight it is almost certainly enough to pay for the cost of almost any plan she chose to follow, even if it involved a gym membership.
The loss of that much of her income is so unseen that, if her check was for $300 each week should would feel like the government was being so nice to give her a check for $260 every year.
And if she works hard and over time gets to a point that she is making three times as much money her taxes don't go up by a factor of three - that wouldn't be fair. So they go up by about a factor of six.
And none of this includes state or local income tax.
It's the same with gasoline, cigarettes, and alchohol - the price you see on the sign already includes the taxes because, if it didn't, people would be outraged. Everyone is so quick to dump on the oil companies if the price of gasoline goes up a dime but few even realize that it would come out to about forty cents a gallon lower if they only had to pay normal sales tax on it. But if the sign said $1.49 a gallon and people who bought $15 worth had another $5 tacked on they would scream.
I remember when I was a kid I noticed that we never had to pay sales tax on gasoline and asked my dad why it wasn't taxed just like everything else - at which point he told how much tax was already included in the price. Because I didn't see the tax being added at the time it was purchased, I assumed that it wasn't taxed at all.
You can easily have the same thing happen - in fact it has been proposed already - that the manufacturers of the incredients be taxed so that the higher cost would flow down to all of the foods that used that ingredient. What people would see would be a gradual rise in the shelf price of lots of products that was outpacing the rise in other products, but there would be no drive to throw the rascals out.