Monday, March 06, 2006

Loser fees help fund Texas government


Chron: Texas Government is too scared to raise taxes so they tack on fees to losers who can't fight back.
No politician wants to raise tax rates. But life's temporary civic losers - those with a traffic citation, a DWI conviction or a bail bond to make - are an increasingly attractive target of cash-starved governments.

Lozano and everyone else in line that day were paying 21 mandatory fees that now grace the average local traffic citation.

Got a broken taillight? The city of Houston fine is $30. But you'll pay $93 extra in surcharges - four to the city and 17 to the state.

Governments often cover the cost of specific services with a "user fee." Call this twist the Loser Fee.

"This stuff happens all the time, especially in states without income tax. I just call it 'anything-but-taxes,' " said David Brunori, a contributing editor to State Tax Notes and a public policy professor at George Washington University.

Even "sin taxes," such as the 41 cents Texas collects from each pack of cigarettes, have maximums. If they go too high, smugglers move in with tax-free contraband or people buy in a neighboring state.

Thus, the newest alternative - loser fees, Brunori said.

"What has happened in the last 10 years is a proliferation of cities and counties and states using fines and civil penalties, although they won't admit it's for general revenue," he said.
A tax by any other name is still a tax. In fact, fees are the most regressive worst taxes for workers. They fall hardest on those with the least money. It is no surprise they rise with Republican government. It is no surprise they are worse in the no income tax states.

Link from Drudge Retort, the good Drudge.


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1 comment:

Anonymous said...

This is truly amazing. Looks like Texas is taking lessons from the credit card companies.