Friday, November 30, 2012

Tax

Here in Maryland they are proposing an increase in the cigarette tax,again. Another dollar. The lawmakers and bean counters are counting on this revenue and see no problem in collecting it. There is no concern that massive amounts of people will quit buying this product. I'm convinced more will seek the product elsewhere. Whatever. I am happy to say I quit that habit some time back. What I do find interesting is the willingness of people to keep buying. If we could only get people as devoted to supporting charities or doing good deeds what a wonderful world we would have.
I'm not preaching, I was one of those people for many years. I understand. I do wonder just where the tipping point is going to be. That point where those attempting to get the product cheaply cause problems for everyone else. And at what point does the government become dependent upon this income ? The revenue stream is significant but the cash cow has got to go dry at some point. At least that is one of the reasons stated for increasing the tax. To make people quit and lower the cost of health care.
I have said this before, but older folks tend to repeat themselves, how wise is it to base an economy on " sin "taxes. Tobacco, gambling ( gaming ), and liquor. And now in four states marijuana. Can a tax on medicines be far behind ? I'm guessing not, as soon as they figure out what to call it other than a tax. A production fee ?
Fees are not taxes. That's what I've been told but I disagree.
I'm no statistician or pollster but I think I can safely state the demographics of those most likely to be using these products. Don't get upset, remember I was included in those demographics in the not to distant past.
It is not the strongest of financial bases. Just sayin'.
I believe these taxes are imposed in part because these are the people least likely to have the means to effectively protest or overturn this decision. Not many in this demographic have the power, influence or wealth to mount a significant challenge. Prey upon the weakness of man. That is the crux of the whole deal, isn't it. Chance or design ?  

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