Operation Tax the Poor

State and local governments have figured out that the rich are geographically mobile and financially able to decrease their taxable activities, so raising taxes on the rich will not generate more revenue (see Kah-lee-fornia). Obama hasn't figured this out yet, but the 2011-2012 revenue figures will give him a clue.

The poor, on the other hand, are screwed. You can tax the crap out of them and it only makes them poorer and less able to get away from the taxes. Phoenix is going to implement a food tax. SF Muni is raising fares three times in a row. How many poor people in Phoenix can escape to a better place? How many Muni riders can really telecommute or buy, maintain, fuel, and park a car instead?

Europe had this figured out a long time ago. Instead of getting so much of their revenue from high marginal personal and corporate income taxes, they have VAT (sales) taxes that keep the poor poor and keep revenue rolling in to feed the government beast.


Negocios Loucos said...

Yes indeed, this has worked for us for centuries. The poor are to mentally illequiped to stop us. The one initiative that hasn't worked though is that we haven't been able to get rid of their smell. Stealing from them is the easy task though.

Dean said...

W.C., I forgot where I put it but I read an outstanding article a year or two ago about just how expensive it was to be poor.

While we stock up on the staples at the big box outlets with a one-time big ticket expenditure, the poor are paying through the nose at small, urban street corner outlets whose per unit prices are through the roof.

reddog said...

Nobody pays on the SF Muni, you're a fool if you do.

Just get an expired transfer slip out of the trash and wave it at the driver. What's he gonna do? Call the cops and have you thrown in jail for bus fraud? Never seen it happen.

Buy your food with food stamps. Go to any crack house and trade money for stamps, 4 to 1. Only takes a minute.

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