State Needs More Revenue? Why Not Tax a Tax?
by Todd ShepherdColorado, like every other state in the nation, is struggling with revenue.
So what’s a state to do? Well, let’s see, the state already taxes income, gas, sales on goods, personal property, corporate income, entertainment, energy, phones, etc. All that’s left to do is…tax a tax.
Never happen you say?
Coloradans must pay a $1.50 waste-tire fee every time they dispose of an old tire at a retail outlet. And according to an “FYI Memo” from the state department of revenue, “Effective August 5, 2009, the waste tire recycling development fee is considered part of the purchase price and is subject to sales tax.”
Based on the revenue of the waste-tire fee from previous years, this means the state and other sub-governments could collect a grand total of anywhere between $300,000 to $500,000…all because they are taxing a fee.
“I realize $300,000 isn’t a scandal to most people,” says Jon Caldara of Colorado’s Independence Institute, a free-market think tank. “But if we don’t stop this practice of placing sales taxes on fees now, then it won’t be long until the state is collecting millions, for nothing. It makes me wish the Beatles could add just a couple of lines to the song, ‘Taxman.’”
The full story is available here at the Independence Institute’s website.
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114 Comments
“But if we don’t stop this practice of placing sales taxes on fees now, then it won’t be long until the state is collecting millions, for nothing."
They all ready collect millions for nothing.
So will they now start taxing the sales tax?
The Progressive mind at work; I hope we find a cure for it in November.
Kinda like a sales tax on gasoline….
And they said they weren't just another bunch of tax and spend Democrats. Oh really…?
No one seems to understand that we are going through a serious recession. Tax A Tax? Why don't they just put toll booths on the side walk. How much money do they think America has before we all run out of money. Why won't they just get out of our lives. Do we as Americans have to literally go out & physically stop these people. Do they really want another American revolution? It didn't work out to well for the British the last time they taxed us & we felt we didn't have representation. This type of situation is exactly why the 2nd Amendment is part of the Constitution. Be weary fools in D.C.. Americans are getting more & more pissed off.
California already taxes your state income tax refund as income.
Hey Dumb Americans,
Do you need any more convincing or can we dump the democrats already?
Hawaii has a General Excise Tax which is a tax on the gross revenues of a business (so almost all business transactions are subject to it). Currently 4% for the State with a 0.5% surcharge if the County wishes to impose it (yes, the State decides what taxes a County may impose). Since the GET is a tax on gross revenues it means that if the business collects the GET that is included in the gross revenue and subject to tax as well. This is not your ordinary Sales Tax as most other states have it.
The result is that for a 4.5% GET rate, the business charges 4.712% so the net result is the business does not lose money on the transaction.
The price of doing business.
Colorado voted 54% to 45% in the last Presidential election. This is what you got. So STFU and pay your dues. Next election, THINK, before voting.
Beer has sales tax on it's excise taxes.
Politicians see the middle class as a never ending supply of dollars, and politicians know how to spend your money better than you do. Resistance is futile unless we all stand together.
Maybe if they start taxing money you don't have they'll call it the GOT or the HAD tax.
This is already happening nationwide. Our nation's truckers are charged Federal Excise Tax for their tires (apparently the government considers tires for our truckers who are the life blood of our economy to be a luxury). Anyway, this federal tax, in most states is subject to sales tax. No wonder out truckers are going out of business left and right, and our economy is in such bad shape.
I think CO could very well go 'R' next time. Even leftists are angry at angry at this crowd of nuts. Boulder is a sanctuary city for illegals but they arrest the homeless. Makes about as much sense as anything else.
Our telephone bill is filled with examples of mutiple taxes, some of which tax on taxes.
Here in California they tax everything. I remember the citizens outrage when California started taxing unemployment benefits, which are basically wages that have already been taxed. When they find out about what Colorado is doing, sure as you know what, they'll do that too, and more. They're probably thinking, "Why didn't we think of that?". Ugh, I can just see it coming.
I cannot wait until Ritter & Bennett are gone… CO is going back to Red. Mark my words.
yup, we have been paying sales tax on the gasoline tax for years…..the governments, state, local and federal, are out of control with their tax and spend attitudes.
You've got to be kidding.
No, I guess not, you said California.
California already taxes your state income tax refund as income. That's effectively a second tax on income that you lent the gov't after paying tax on it.
My head hurts.
Does that flag look like a ravenous commie pac-man gobbling up a tax paying citizen? Maybe somebody put something in my coffee…
" Next election, THINK, before voting. "
That is the problem, people dont think they vote with their feelings.
Dead serious, they send you a form 1099G, as if it was income.
Even better; Their plan this year and last was to increase withholding while not actually changing the tax rate. SO, they take more of your money after you pay taxes on it, and when you get your refund, the next year it is taxed again.
Needless to say I changed my withholding immediately.
Well, I think that is happening to a certain extent. There are always going to be morons who have trouble turning a door knob but the real masses have just not fully woke up yet. This is just another example of why most politicians should be removed & replaced with honest people in touch with the Heartbeat of America. We are not Europe & we have fought to not become them. We fought for our freedom for a reason.
Hawaii does it in the open. If a seller explicitly charges excise tax (they don't or won't call it a sales tax) as a separate line item, the seller must send in taxes calculated on the entire amount it collects including the "taxes" it collected.
DON'T THINK THAT IT'S NOT PART OF THE PROGRESSIVES PLAN!
WATCH GLENN BECK TONIGHT!
In OUR state we have to pay $3 per tire. It's an environmental thing, but they're so stupid that they don't realize that if they'd PAY $3 per tire, instead of CHARGING, they'd make cleaning up the environment a cottage industry. Don't even get me started about that retarded CLEAN AIR ACT.
Cleatis,
I forgot about that one. They tax everything they can think of here. There's already a big problem of people dumping tires in the woods rather than pay the fees to dispose of properly and this would make it worse, especially in this recession. And it costs the state and local gov'ts to clean them up. But they'll do it anyway, just as soon as they find out about it. And more. Mark my words.
Hey, people, take a hint for how we do things here in "Doity Jersey": take your old tires and leave them by the side of the road. Or, in vacant lots. Or behind City Hall.
Have a nice day, ya hear.
Here in Washington state, we've all payed for HOV lanes with taxes. Now in pursuit of more money, single occupants can use them if they pay a user fee by means of transponders that track your usage and charge accordingly.
High occupancy vehicle (HOV) lanes become HOT lanes (high occupancy toll lanes) if you've got the money. Doesn't matter that you have already paid for the lane with taxes. Thanks Dems.
Tax is a government protection racket. The IRS is the knee breakers. Flat tax kills the scam.
Hmmm idea for CO….leave your used tires on the capital lawn. Or mail them your used tires….might be a good thing for the feds too.
I don't care what they call it, bottom line is this; if its a fee, a surcharge, a due, a duty, a levy, a toll, a charge, an excise, a tariff, or any word that means giving the government money, no matter what form, is a tax! They can disguise it any way they want, bottom line: TAX! Enough is enough!
Is that even legal??? Doesn't that constitute 'double taxation'???
Can someone tell Obama to shut up please … Stocks tumbling again today !!!!
http://finance.yahoo.com/news/Stocks-fall-for-3rd...
Fair Tax would kill it quicker.
I think that America should go back to being America..Land of the FREE!!! We need to put a stop to the stupid people we elect (thanks to their lies!) and MAKE THEM pay more!!!
If I'm not mistaken, we who imbibe already pay sales tax on "sin-taxed" alcohol and tobacco products. Taxing taxes is really a pretty old practice.
Maybe when they feel pissed off enough.
Two areas of Colorado are heavily democrat: Denver and the people's republic of Boulder. The rest of Colorado is more conservative. Since those two areas concentrate high populations (and supposedly, the most educated people in the country live in the Boulder area), it's hard to circumvent. But I live just outside Boulder and have to say I see more and more angry people at the direction this country and state seem to be taking.
God I hope so! I have written so many letters to Bennet and gotten back form letters that are espousing liberal nonsense. Enough already. I'm going to support his opponent in the primary and then the Republican in the general.
Last year you deducted the state tax from your federal income. California state tax is on federal income after deductuioons. When you get a refund, you are actually reversing a previous deduction.
Now California tries to tax people on income tax they deferred by reason of a 401. If you leave California, they still want you to pay california tax on california 401 even when you got smart and left before retirement.
The Progressive movement might as well be called what it is, a communist movement. Because that is all it is with a different name. They think we are fools, and think we the people do not see through their attempts to destroy this country. They are so arrogant and do not realize their end is coming soon with a swift decisive end in America. FOREVER……
I heard they pay an additional 15,000 tax on trucks in Jersey.
we already use the tax code to punish people, it make sense to a progressive to tax a tax for it is already done.
first we must find a cure for the uniformed and those who use the power of government to get their way..
last time I bought tires, I told them I would keep the tires. They forgot to put them in the trunk. I saved the fees.
to bad both government parties believe in the progressive tax code and thus are progressives.
Leave them in your back yard. The water in them breeds mosquitos which the birds and frogs eat. Good for the environment.
Property tax… Here in Va we pay property taxes every year just for the priviledge to live here… I already paid taxes on my house when I bought it, now I pay taxes every year on it…
Yeah, I'm the taxman.
if you drive a car – I'll tax the street;
if you try to sit – I'll tax your seat;
if you get too cold – I'll tax the heat;
if you take a walk – I'll tax your feet.
Taxman!
( if you exhale CO2 – I'm the taxman and I'll tax that too.)
Huckabee says flat tax on consumption would let hookers and drug dealers participate every time they buy a new set of wheels or jewelry. Now they get left out on taxes because no one furnishes them with a 1099 or W-2
Colorado probably got the idea from California ………………… Hanzo
Maybe Ohio isn't so bad afterall
………………Hanzo
I've emailed bennet three times and all I get back is liberal crap I told him he is through in nov. better sign up for unemployment benefits. Also been emailing Udall with the same crap in response. I'm looking to move to greener pastures.
I’m by no means a tax expert but isn’t that because the refund is actually income that is never taxed in the first place? Your federal and state tax is calculated on income AFTER deductions, one of which is state tax withheld. Since your refund was withheld and taken as a deduction as tax paid, it was never taxed which is why they send out the 1099G to get it the following year. Otherwise you could have the state withhold a large excess of tax to reduce your federal taxable income and then get a large refund tax free.
How can they charge a fee to dispose of new tires when you purchase them. Who's to say how many years it might be before you dispose of them. Those new tires might be for a classic collector car that will stay in the garage for the next 50 years. In Indianapolis you can drop off old tires at a recycling center that pays you for the old tires. You cannot charge a fee for something you are not providing at the time unless the contract states that you can bring back the old tires at any time in the future free of additional charges. As far as the tax; give me a brake.
Progressive mindset~"Tax a tax, brilliant !! ………………..Hanzo
yes indeed this will be an eye opener for those of you who were never taught the real history of marxism/communism/socialism and people like che, mao, hitler, and others who the progressives seem to admire….
I believe EVERY state that has an income tax will tax last year's refund as income in the following year. Don't you people do your own taxes?
And are you the type who, when asked how much you paid in income taxes say, "I didn't pay anything. I got a refund!"
If you haven't read about The Fair Tax, now is the time!
Doesn't Obama also want to implement a surcharge on the income taxes that "rich" people pay beyond a certain dollar amount? Talk about a tax on taxes!
Mark Twain
The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.
Randyl2: Thumbs up!
Now my advice for those who die, (Taxman !)
Declare the pennies on your eyes. (Taxman !)
'Cause I'm the taxman,
Yeah, I'm the taxman.
And you're working for no one but me.
Taxman !
Well said! Hopefully they're removed in November!
This is actually part of a sinister plan to chase all the damn Californians OUT of Colorado!
So, you're a Californian – 'on the run'….where to relocate …where to hide…
Let's see, theres Idaho ….no, too many "2nd amendmant nuts" up there -… Montana – nope -might hafta talk to Ted Turner…..New YorK? …Whoa – SKY HIGH TAXES there…Switerland? no the IRS is hunting there….
They should have mentioned that Colorado has made it so hard to meet their environmental restrictions no oil company can drill a new well in the state. Keep in mind that Colorado is sitting on more oil than the enire ever had.
That is both oil shale on Federal Land and oil field in the eastern part of the state. You can't cure stupid.
I am so sick of progressive thieves, what more is there to say.
Am I the first programmer here to point out that there's no way to break out of that recursion loop?
Every smoker in my state pays sales tax on the price of a pack or carton of cigarettes, a price that's already largely made up of state, local, and federal taxes.
The most educated people in the country do live in Boulder. It's the 15-20 of us that are conservatives.
Boy, there would be no end to taxing fees.
I'm sure the IRS will love the creation of the income tax tax(twice as hard as the original to understand, with twice as much paperwork, and collecting a lot less revenue ).
If states really want revenue, the solutions are simple. But these idiots seem to think a tax(like a law) will solve problems. It's to bad all they are going to get is far less money.
The tax on alcohol and tobacco is hit with sales tax as well in most states.
If you want to dispose of tires just burn them.
Naw, we have enough mosquitos. They are the state bird afterall.
[...] Big Government: Coloradans must pay a $1.50 waste-tire fee every time they dispose of an old tire at a retail [...]
Yeah, and here in Doity Joisey we have to pay an "Exit Tax" if we sell and move away.
(Oups, didn't mean to give any blood suckers an idea).
[...] Big Government: Coloradans must pay a $1.50 waste-tire fee every time they dispose of an old tire at a retail [...]
No, refunds are overpayment of taxesalready withheld from income.
The Feds have already changed the deductied amount this year. Look at you paycheck – it is less. They refer to it as a "free loan". Change your deductions to add at least 1 more.
When did they implement that?
for three years this state has gone the way of the libs, tax and spend, tax and spend, tax and spend. Its time for a change … a move to the right and back to free market principles and fiscal responsibility. We must cut back the spending of the government, even if it means cutting services. The government must become responsible.
Who knows what "fair" is? Who would decide? Congress? OMG!
Precisely, Colorado is the new California; where do you think all the Calfornians moved to? I remember the year 250,000 California's moved to Colorado, immediately, they started screaming about wood burning fireplaces, needing better highways, changing laws so that if you are a natural born American citizen you need a birth certificate to get a driver's license, however, if you aren't, all you need is an electric bill to show your residency. I was raised in Colorado, it was wonderful until these horrible people moved there and ruined the whole State. Oh, then they voted in a liberal government.
Russia
No, you go to the TAX subroutine for every purchase. If you do not purchase anything and the tax is zero you go to the alternative minimum tax subroutine. That bucket ain't gonna be zero – no matter what!
maybe…maybe…could work….in the South, you know, the "warm" part (is there a warm part?), they do have a Range Rover dealership over there, right?
And (like I have to ask, sha ya, as if! ) Russia has Starbucks, ya?(see I'm "practicing")
….Californians? Are you listening?
Why not just tax the air you breathe? A scientific estimate of how much each person breathes in with each breath could be made and an average of the number of breaths each person makes each day could be determined similarly and that every person would need to pay a tax on the amount of estimated air consumed. Of course, they could impose a tax on the exhalation of the air breathed in as a pollutant (thus requiring a heavier tax).
You think it's out of the question? They already tax you when you die.
So if it's refunded then it is no longer tax that you paid, it goes back into the taxable income column. Since it was not taxed originally as income (was deducted from taxable income) it has never been taxed. Thus the 1099G.
I know how you feel, living in Oregon in the mid to late 80's was pure hell as I witnessed Californians moving in with their liberal agenda and sanctimonious attitudes. They totally changed the face of politics in that state. Oregon went from a Conservative state to virtually the most radical left-wing nut job haven in the Union.So I moved back to Ohio.At last, the native Oregonians are just now starting to turn the nightmare around. Be strong, we're pullin' for ya', fight the good fight, friend …………………….. Hanzo
The overtaxation of the transportation industry is well hidden from most of the publics view…Not only tires but how many miles you drive {different in each state}…fuel is taxed{in most states}by the Fed and State upon purchase and at the end of the year…not to mention you have to buy the licence so that they can bestow them taxes upon you…when you add enviromental fees,insurance and the chance of increased healthcare mandates…When transportation prices rise everybody suffers the increase…
Crazy, ain't it? But you are actually paying money on money that has been used as a tax payment and given back to you because you do NOT owe it. Who wrote the tax code. Charlie Rangel?? Oh, yeah, the tax cheat does actually right the tax code…
They also tax social security payouts to elderly which,. of course, is also a tax…
New York State has a "use tax" which is a tax for all items brought into the state purchased in another state. Like when I moved to NY, any item that I move into the state (furniture, clothing, books, sundries – all used), I am obligated to pay a tax on them. Don't tell the NY taxman, but they can put me in jail before I will every pay a "use tax"!
I have a whole poem about taxes that ends with,"And they are going to tax you till the day you die.And a little more after that.MY,my,my."
What's sad is how creative they become when it comes to new taxes and fees but they seem completely incapable or unwilling to become for efficient and waste less of the taxpayers money. As others have said, if our "leaders" and "representatives" were as good as the average taxpayer at managing money our nation would not be nearly as far in debt as we are now. The budgets would be closer to balanced than they have ever been. As it is our so called leaders and representatives are intoxicated with themselves and drunk with power and many have been on career long spending sprees whose end is in sight. One way or the other this nation cannot and will not be able to sustain such debts. Either these people ruining our nation must go or we risk loosing our nation all together.
The net result is the business doesn't lose money on what they charge, but we do. That is the problem I have. It all get's passed on to the consumers & businesses charging 4.712% against the get rate of 4.5%, doesn't that mean the business is making a tiny bit of extra money on each transaction? Sounds like they are both ripping off the consumer.
WSDOT – Project – SR 167 – HOT Lanes Pilot Project – Open May 2008 High Occupancy Toll (HOT) lanes are your ticket to the fast lane when you just can't be late. This four-year pilot project will test a new congestion …
http://www.wsdot.wa.gov/projects/SR167/HOTLanes/
Washington State has invested more than 1.5 billion of state and federal dollars in freeway …
Yep.
When is everyone gonna get it? The lawmakers are CRIMINALS. Don't just vote 'em out – PUT THEM IN JAIL!!!
This is nothing new. You already pay taxes on taxes. If you Smoke or Drink you pay taxes on taxes on taxes. If you use a phone you pay taxes on taxes on taxes on taxes. There are so many hidden fees, excise taxes, whatever you want to call it hidden in most transactions you do every day.
Don't forget cigarettes. Half the pack price is state and federal taxes, then we pay sales tax on the full amount. That's how it always starts. Do it with something unpopular with the majority, so only a few protest, and that opens the door to tax on tax on other things. It's sad how many will say go ahead to bad practices that don't affect them, at least until the bad practices expand to include them. How many of you, protesting now, cheered about the tax on tax on cigarettes?
I doesn't surprise me really, anywhere to find a dime to make up for budget shortfalls. Gregoire and the state legislature is a piece of work . If we make it without going the way of California, I will be surprised. One good thing with all of this is I think it will be the end of her as Governor. Reelect Dino!
"Reelect Dino!"
Love it LOL
The Dems are in control of the Statehouse and Gov seats in Colorado. They have been raising taxes and fees on everything that they can, but they have to get around the Tabor Amendment to do so.
Ritter, the Dem Governor is disliked by most here and is not running again this year. The equally liberal Mayor of Denver, Hickenlooper, has thrown his hat in the ring. I just hope the good citizens of CO take the opportunity this fall to throw these tax and spend liberals out on their cans.
Tax the salaries and benefits of government workers. Compared to comparable private sectoe workers, bureaucrats and politicians are over paid as it is.
one of the oldest and most inviolable laws of economics is that businesses do not pay taxes, they collect them. and yes, it is SOP (and only fair) to compensate themselves for the time & hassle of performing this 'service'. that's exactly how a 4.5% tax turns into a bigger expense for the downstream customer.
the only reason govt taxes businesses is to hide the game from consumers/voters. this scam is aided and abetted by the general ignorance of business and economics among the general populace. while it might be a stretch to call it a conspiracy (but maybe not), the pi$$poor job public schools do educating students in this area is indirectly complicit in this ripoff.
i have a degree from CU-Boulder (about 30 yrs ago)- never met so many overeducated idiots in my entire life…
[...] a Tax State Needs More Revenue? Why Not Tax a Tax? – Big Government __________________ Just here for the [...]
[...] here to see the original: » State Needs More Revenue? Why Not Tax a Tax? – Big Government Share and [...]
I believe that we fought the American Revolution over the 4% tea tax. Time for another?
Wow. 15 -20 conservatives in the PROB! When I lived there the count was two. Sounds like a few people moved north from the springs or south from Ft. Collins.
I miss the fly fishing and Avalanche games, but at least I can get Fat Tire.
It's not a matter of 'Democrats' or 'Republicans', it's a matter of inept leadership and greed. Politicians, whichever side they come from, are the to make as much money as possible. Isn't that what America is about anyways.
It is also the blindness of citizens that is allowing this country to fail. We have a two party system, or as I like to say regular vanilla ice cream or creamy vanilla ice cream. To say that one party is better than the other…. ummm….yeah…. they both have problems.
Convincing citizens that the basket should be in the left hand or the right hand as we work our way to Hell is the greatest pacifier in modern politics. Don't like what one party is doing? Well you should have voted for the other person. See it's all your fault. Why don't you pick up a sign and protest, that will get it out of your system. Better yet, why not leave ineffectual comments on a random website? Now that you feel better, run along to your little life and let the politicians do what they do best.
Or Cigs, jesus cigs price is ALL TAX save .25$ or so then they pile the sales tax on that.
Florida(Repubican controlled) has had that in place for years. But hey, don't let that stop you from bashing a Democrat since all Repubicans can do is fear everything. How about some ideas to help fix the problems that years of Repubican control has brought on us.
Where have yo been Todd? The Feds have been taxing our Social Security Tax from the get-go!!
GT Horvat
Colorado has taxed Federal Income Tax refunds as income for years. This has outraged me since I was old enough to file my state income taxes.
Too many voters have short memories. But enough sustained voter anger can (temporarily) move mountains and change power bases. A tsunami to wash some arrogant, boneheaded Dems out of power is coming; but if the Republicans who replace ‘em forget why they were elected (as did the Class of ‘94, by ‘04), we’ll find ourselves right back in tax-anything-’n-everything-to-spendville.
Sometimes to close a budget deficit you have to cut spending, and *gasp* raise taxes.