Monday, March 30, 2009

In Which I Ask An Awkward Question...

If the 60 cent increase in the federal cigarette tax is designed to decrease the number of people smoking cigarettes, what is the purpose of the proposed increase in taxes on small business owners?

5 comments:

cnick said...

Logical fallacy. Because all elephants are gray, therefore any gray object must be an elephant.

MeatAxe said...

When will you stop lording your class in formal logic over the rest of us? :)

I think my question is reasonable. If increased taxes on cigarettes are expected to suppress smoking, will not increased taxes on small business owners suppress the growth and success of their businesses?

cnick said...

Caveat: I don't know the details of the proposed tax you are discussing.

One is a consumption tax, the other essentially an income tax. So they aren't easily comparable.

Regarding business taxes, one would think that any taxes on business would suppress growth and profits of business. However, taxes pay for infrastructure, education, etc.; things that, without which, small business (or any business) would have a very hard time functioning at all.

So the answer to your question depends on what the taxes are used for, as well as many other factors. There's no easy answer.

Personally, I'm in favor of eliminating income and business taxes entirely, and replacing them with a national consumption tax on everything except education and necessary medical expenses.

MeatAxe said...

holy crap! so am I. Ive just finished reading two of the FairTax books...

cnick said...

We are not so different, you and I. Together we can rule the galaxy!

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