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Wed Mar 13, 2013, 12:31 AM

Not another head tax - the most regressive tax of all [View all]

Last edited Wed Mar 13, 2013, 05:22 AM - Edit history (2)

According to a Pioneer Press article:

A group of lawmakers will take a second look at a controversial bill to impose a $5 surcharge on homeowners and vehicle insurance policies, raising about $23 million annually for police and fire pensions.


More at: http://www.twincities.com/politics/ci_22768070/insurance-surcharges-boost-pension-plans-gets-second-look?source=rss

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Taxing each household the same amount (similar to a head tax) is far more regressive than even a sales tax. Yes, I know, it's households, not people, but it's close. And yes, I know only homeowners pay the homeowner insurance surcharge, but virtually all economists believe that in the long run in a market economy, homeowner costs and taxes are paid mostly by the renters in the case of rental property. And yes, the poorest of the poor probably dont have a vehicle. But it is still a VERY regressive tax.

In Golden Valley, weve been recently hit with new $24 / year surcharges on our electric bill and another $24/year on our gas bill another similar head / household tax. (I know that's not the legislature's doing, but its an illustration of how our elected officials are adding and increasing the most regressive taxes).

And then dont get me started on the sales tax increases the next most regressive tax after head / household taxes. The sales tax on services, besides being extremely regressive, is mostly a tax on local labor.

In an age when inequality is soaring through the roof, I am shocked and horrified that a Democratic governor and legislature seems to be doing all it possibly can to make the situation worse.



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Reply Not another head tax - the most regressive tax of all [View all]
progree Mar 2013 OP
Angry Dragon Mar 2013 #1