Originally posted at
Demspeak
Fees are taxes, don't let anybody tell you different.
Demonization of taxes is a central value with the Republican party. Starve the beast so we can drown "drown it in a bathtub", so their private leaders say.
This new tax, the $3 per airline ticket "fee", that Bush has proposed is a tax increase.
We have Recreation Fees, Toll fees, Destination Fees, Airline Fees, They are feeing us to death. Great, cut taxes and increase fees.
I heard a reporter today on NPR asking Bolton at OMB a question about the new Airline Tax, and he was very quick to reframe the Airline Tax into a simple fee applied to those that use it.
Can you talk about the airline ticket tax increase in here? What impact do you think that will have on tourism and on the financially troubled airline industry?
DIRECTOR BOLTEN: We are proposing raising the fees on ticket taxes to reflect the cost of the screening of passengers and baggage. I don't know what the effects on the industry might be, but we really have two choices -- is that we can ask those who are flying to bear those costs, or we can ask everybody, including those who are not flying, to bear those costs. We do have the costs; we want to make that system work as effectively as possible. But given the choice, I think the better policy is to ask those who are actually flying to bear the cost of the enhanced security system.
I found this very interesting, not only because I heard it coming, but because of the concept of the individual citizen bearing economic responsibility for the collective security of America. He also appealed to fairness to justify this tax, which kind of pissed me off.
Question for smart people: If it is a "fee" can it be written off as a business cost?
I bet it can.
Please let me know if I am wrong, but I am going to go ahead and lay this out before I forget.
The Airline Model
A fee is a Personal Usage Tax,as in take it outta your wallet and PUT it into a particular program of their of the government's choice. In the case of the Airline Tax, it is out of your wallet and into Homeland Security, not an ignoble cause, but it is from your after tax income. Which really IS your money.
I wonder how this impacts business travel? I bet that they get to write it off as a business expense, meaning that at the end of the year they will deduct it from their taxes that should be going to pay for Homeland Security and the well being of America. I guess it is only those real live persons "who are actually flying to bear the cost of the enhanced security system," and not everybody. That seems fair.
The Turnpike Model
If you live by a turnpike, this should be a money issue. You pay a toll tax for personal travel. A major trucking company gets to write off that toll as a business expense. The irony is painful. They destroy the highway with their giant trucks, causing the toll tax to go up, then they write off that their road usage 'fee', starving the federal government of money needed to fix the roads they have broken.
The Social Security Privatization Model
Fees in Bush's scheme are just like taxes, something that you have to pay. The only difference is that you will not be paying that 'tax' to support America, you will be giving it to some greedy CEO. Man that captive market thing sure is good for low fees. Never mind having to pawn our childrens future to initiate it.
Fees are going to become more popular. We can get out in front of this issue and bring it to the mainstream.
Values Statements:
- Progressives believe that the Individual American Citizen should not be stuck with the tab for corporate America's excesses.
- Fees are Personal Usage Taxes that do not apply to private enterprise.
- Private enterprise is given a free pass when it comes to fees, but real live American's have to open their wallets and pay.
- Fees and taxes don't mix, unless you are a business and you can expense it.
Note:I am sure that I am being too simplistic with this, but if I am wrong about expensing fees, all is not lost. Fees are still after tax taxes, and should be a big fat target.