Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Tuesday, March 30, 2021

"Transportation Secretary Pete Buttigieg said Monday that neither a gas tax nor a mileage tax would be part of President Joe Biden's sweeping infrastructure plan to be detailed on Wednesday."

 CNN reports. 

The absence of both taxes to fund the infrastructure proposal marks a shift from Buttigieg's comments Friday.

"I think that shows a lot of promise," Buttigieg said of the mileage tax. "If we believe in that so-called user pays principle, the idea that part of how we pay for roads is you pay based on how much you drive.... The gas tax used to be the obvious way to do it -- it's not anymore, so a so-called vehicle-miles-traveled tax or mileage tax, whatever you want to call it, could be a way to do it... [I]f there's a way to do it that doesn't increase the burden on the middle class, we can look at it, but if we do, we've got to recognize that's still not going to be the long-term answer."

That was last Friday, after which Buttigieg got "roasted" (according to The Week). The big problem with that "user pays principle" is that richer people live in the more close-in suburbs and have the benefit of a shorter commute, and the poorer people who must buy further-out real estate and put up with a longer commute would now be expected to pay more for their opposite-of-privilege.

Here's Buttigieg displaying absurd glibness embracing the principle and acting like he and that principle never met:

Sunday, March 21, 2021

"Unreported income is the single largest reason that unpaid federal income taxes may amount to more than $600 billion this year..."

"... and more than $7.5 trillion over the next decade.... The government has a basic obligation to enforce the law and to crack down on this epidemic of tax fraud. The failure to do so means that the burden of paying for public services falls more heavily on wage earners than on business owners, exacerbating economic inequality. The reality of widespread cheating also undermines the legitimacy of a tax system that still relies to a considerable extent on Americans’ good-faith participation.... ...Charles Rossotti, who led the I.R.S. from 1997 to 2002... that Congress needs to... [create] a third-party verification system for business income.... Under his plan, the government would require banks to produce an annual account statement totaling inflows and outflows, like the 1099 tax forms that investment firms must provide to their clients.... The money is undoubtedly in chasing wealthy tax cheats, but equity argues that business income, like wage income, should be subject to a uniform reporting standard.... Consider what happened after Congress passed legislation in 1986 to require taxpayers to list a Social Security number for each person claimed as a dependent.... The next year, seven million children abruptly disappeared from tax returns.... The government can crack down on crime, improve the equity of taxation — and raise some needed money in the bargain. There are many proposals to raise taxes on the rich. Let’s start by collecting what they already owe."

Says the Editorial Board of the NYT.