Politicians favor sales taxes

Steve Brown's picture

There was quite a bit of media coverage on the TEA (Taxed Enough Already) parties across the country, replete with signs, bumper stickers and t-shirts. Many of the events were rants on President Obama, assumed to be “Republican” TEA parties. Others were somewhat issues oriented. However, I thought the best witticism directed at Congress was the little toddler wearing a diaper and holding a sign saying, “I didn’t read the bill either!”

In 1773, we were fighting repression from overseas, but we now protest against our own elected representatives. Too few are asking, “So why do we keep re-electing irresponsible incumbent politicians who are greedy and never address the problems of the masses?” Moreover, why do we allow apathy and complacency to rule our lives when we have the bona fide freedom to transform things?

In 1773, we were fighting off a tyrannical monster. In 2009, we are the monster. Indeed, we applaud the customary rhetoric critical of taxes, but the people we elect flourish in an environment of pork barrel spending, lobbyist kissing and tax loophole inventing.

The TEA parties were promoted by FreedomWorks, a conservative nonprofit advocacy organization in Washington D.C., led by former Republican House Majority Leader Dick Armey. The irony is Mr. Armey is employed as a lobbyist with DLA Piper, representing private entities seeking government bailouts, favors and tax loopholes. Furthermore, while I do not question the motives of average Americans angry about an avoidable economic disaster and governmental neglect, I do have suspicions regarding Mr. Armey’s intentions.

Armey’s lobbying firm represents Canfor Corporation (Canadian lumber interests), Dubai Group, Emirates Investment & Development, First Kuwaiti Gen Trading & Contracting, Saied Ghaemi (linked to MEK which is listed as a “foreign terrorist organization” by the U.S. State Department), and a host of large U.S. corporations looking for favors from our federal government.

We have had enough congressional scandals to demonstrate the role of powerful interests and their lobbyists, as our elected representatives engage in unseemly practices from accepting gifts and travel junkets to outright bribery.

Neither party has shown much interest in productive reforms. It would be easy to create a one-purpose-per-bill amendment (eliminating sneaky, unrelated earmarks) or a balanced budget amendment to put an end to the fiscal shenanigans Congress likes to employ.

Locally, sales taxes have become the cure-all for any and every problem in the state of Georgia. There are a slew of sales tax options, some for education, some for roads, and others for general fund expenditures.

In the future, Georgians will be seeing more and more increases in sales taxes, replacing the stability and predictability of property taxes.

To the artful politician, sales taxes are a marvelous tool because no one keeps track of how much they spend annually in sales taxes. (It evokes the quote about a “sucker born every minute.”)

With sales taxes, politicians have the misleading and oft erroneous stories they tell like “shoppers from every county within 40 miles will come here and purchase lots of goods,” so you are not paying the tax, it’s them.

Or there is the “you are in total control with sales taxes because you choose whether to buy,” as if we have a choice to feed, clothe, transport and shelter our families.

The truth about sales taxes is they are the surest way to squeeze money out of the lower class without leaving a paper trail. It is similar to the way we have conned the working poor into paying for the college educations of middle-class children with the lottery, convincing them they can all be millionaires.

The saddest part is sales taxes are regressive, meaning the tax takes a larger percentage of the wages of low-income people than of high-income people.

There once was a time in my beloved Georgia that we truly looked out for the working poor. I remember a voice of morality, a church voice, a “do unto others as you would have them do unto you” kind of voice, balancing the scale of social justice. I think we have lost that voice.

A “flat tax” system would certainly be more evenhanded, but that is precisely why powerful interests oppose it. The reason our tax code is so enormous is Congress creates so many loopholes, tax shelters and exemptions to protect special interests. This is why billionaire Warren Buffet pays less in taxes than his secretary, earning around $60,000.

The answer, dear people, is to stop buying the rhetoric and start demanding some action.

I look back at then-candidate Harold Logsdon churning out the rhetoric on cutting taxes in one forum after another, special interests singing his praises. I also recall Dar Thompson, a candidate as well, specifically stating Logsdon had no plan or relevant ideas on how to cut taxes.

Unfortunately, what Thompson failed to realize is people will vote for what they want to hear, now resulting in record levels of taxation and fees, deficit spending and severe service reductions. The voters wanted a reduction in taxation, but never really examined what was on the table.

Posters, bumper stickers and t-shirts are nice, but an educated, caring and responsive electorate is much better.

[Steve Brown is the former mayor of Peachtree City. He can be reached at stevebrownptc@ureach.com.]

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mudcat's picture
Submitted by mudcat on Thu, 04/23/2009 - 4:07am.

Need to turn this thing around where the higher income earners pay much more than their fair share of taxes. The upper 1% pays something like 37% of all taxes and the bottom 50% pays none at all!! Is that fair? Not to me. Of course the way things are going I will be in the bottom 50% soon. I'll see how that feels and I may change my mind.

A sales tax does not hit the poor harder, they buy less stuff, therefore they pay less in taxes. Maybe they pay a higher % of their income in taxes, but so what? It evens out the playing field. And the lottery is just a tax on stupid, not a tax on poor. Of course if you believe that being poor is a consequence of being stupid, then you may have a point.


sniffles5's picture
Submitted by sniffles5 on Thu, 04/23/2009 - 10:51am.

Mudcat, your comment "A sales tax does not hit the poor harder..." is, in my opinion, the single most breathtakingly ignorant comment ever posted in the entire history of the Citizen's blogs.

Even the Fair Tax morons know that isn't true.


mudcat's picture
Submitted by mudcat on Fri, 04/24/2009 - 4:25am.

Food is tax free, beer can be purchased with food stamps and the big screen TV can be picked up for free at a local sports bar after hours. Gas is a problem, but that's the only area in which I see a bias against the poor. Maybe they could carpool when they drive around aimlessly.

The Fair tax is a great idea - they even bribe the poor with the prebate each month. I'm very surprised the Democrats don't go for this plan. What is there to lose? A little power in Washington? If the power to the people crowd is sincere in what they say - Fair Tax is the way to go.


Steve Brown's picture
Submitted by Steve Brown on Fri, 04/24/2009 - 5:40pm.

Actually, Mudcat, food is not taxed at the state level, but is applicable on the local level (SPLOST, etc.).

I am not sure the poor "drive around aimlessly" either. In fact, many, as a general rule, have to work further from their employment because they cannot afford to live in the suburban areas where most low wage service/retail jobs are found. It is a great paradox (The lower the wages, the further away you have to live from the job).


sniffles5's picture
Submitted by sniffles5 on Fri, 04/24/2009 - 8:59am.

Your ignorance continues to astound me, Mudcat!

If you truly think beer can be purchase with food stamps, I propose an experiment: On May 1st, when SLindsey gets his monthly allotment of food stamps, borrow them and we'll go to Kroger together. Purchase some beer (Miller Lite has 30 packs on sale for $9.99 after rebate...a great buy!!) and attempt to use food stamps in payment. We'll see how many seconds it takes for the nice Kroger lady to laugh at you and inform you that you cannot pay for booze with stamps...


matt.barnes's picture
Submitted by matt.barnes on Fri, 04/24/2009 - 10:27am.

Food Stamps are actually distributed with an ATM card now. Now if you try to use that Atm card at Kroger to buy beer the computer is supposed to decline the purchase. However, you can use that ATM card to draw cash from an ATM and then use that cash to buy beer, cigs, meth, hookers, pick your vice if you know how to work the system you can buy whatever with food stamps.


NUK_1's picture
Submitted by NUK_1 on Fri, 04/24/2009 - 7:09pm.

Thanks for the tip! I got pretty upset the other night when my hooker over in The Estates(hey, times are tough, yo)and the dopeman sneered at my food stamp ATM card. I'm bringing the Benjamin's next time!

Will your soon-to-be-wife have a problem if you become a radio host and are the Clark Howard for the ethically-challenged poor? Besides this tip, you could do a feature on how to convert a can of Lysol or bottle of Scope into a refreshing alcoholic beverage, best spots in midtown to panhandle and at what times, selling oregano as marijuana to dumb white boys, where to get Roofies for that special date, washing windshields of unsuspecting motorists for fun AND profit, etc? Smiling


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