As most know, as the federal government has reduced or eliminated aid to states- the states need to take matters into their own hands.
State and local taxes are incredibly regressive. Some states have no income tax, others have a flat rate or marginally progressive.
In some states they can’t raise taxes so they resort to enormous % increases in fees, tickets, registration, inspection costs to make up for the shortfall.
In the past few years:
Multiple states have raised tolls and mass transit fares by 50% or more.
Traffic violations cost 500 dollars, parking tickets are 100 dollars.
Registration fees for business and cars have gone up 100% in many instances.
Fees for all sorts of official government documents, Birth certificates etc etc have gone up exponentially as well.
Public Schools are forcing parents to pay for services that used to be free by tacking on a bill for- cleaning supplies, bus travel, textbooks.
Tea party republicans have taken control of state governments same as in Washington and they are playing the same games.
Many states can’t raise taxes on the rich, and they aren’t able to go to Washington for aid, so they are playing this sick game.
They aren’t nickel and diming us anymore, the states are extracting large sums of money, and they fall most heavily upon the poorest of us. When they count effective tax rates on Americans they don’t look at the how much the bus fare went up. In some states, commuters are paying double what they used to, just to get to work.
Don’t be fooled by the name, all of these increase in fees and tolls are there because they are taking the place of taxes.
Fines, tickets, tolls, call it by any other name- but it’s a tax. And this game, that the republicans are playing by refusing to raise taxes is not only sick and disgusting- it’s a lie!
We need to raise taxes on the rich.
But even if we raise them by 10% that won’t be enough to get out of the hole that we are in.
I just wrote another diary asking “if there was any interest for a national sales tax to support entitlement programs”- and the people are pissed, the anger is seeping through the internet, and out of my monitor just for asking the question.
I totally get it, I don’t want to pay another tax, and I certainly don’t want to do it before the rich pay their fair share, and they aren’t paying their fair share as of right now.
As I said, even if we do get a 10% increase- that won’t be enough- then what?
I have a solution even more controversial than a national sales tax.
Want to get people off of food stamps?
Want to broaden the base of federal income tax payers?
Want to get people out of poverty?
Want to increase personal saving accounts?
Want to decrease consumer debt?
Want to resurrect housing?
Then, increase the minimum wage by fifty percent!
I know all the arguments against raising the minimum wage- but they don’t apply when inflation -real inflation- coupled with explosive price increases on local tolls, fares and registrations has destroyed purchasing power to the degree that it has.
Almost 90 million workers, or 85% of all working Americans earn less than thirty grand a year.
Thanks to inflation + stagnant wages, most families spend more on necessities than they take in.
These are The working poor.
Food for thought. How many in the tea party do you suppose make less than 30k a year?
Want to see GOP really explode- steer the argument away from taxes and onto the minimum wage.
check out my blog.