Ring, Ring: Hey, Fiscal Profligate, It's For You
I just made up that term, "Fiscal Profligate." It's the opposite of what I am -- a fiscal conservative, for small government and people in favor of wasteful pet programs paying out of their own pockets for all the programs they want (like the "high speed" train to SF that will cost billions -- when a Southwest flight from LA to SF is $59 if you buy it in advance).
Timothy Noah writes on Slate about a side effect of fiscal profligates voting in big spenders and big government -- and that's ridiculously high mobile phone taxes; a nationwide average of 16 percent:
A couple of years ago Bob McIntyre bought his daughter a mobile phone. She was living in Oakland, Calif., at the time, and McIntyre lived in northern Virginia. He told her to buy the phone in Oakland and to send him the bill. With rebates and discounts the phone ended up costing about $25. But when McIntyre got the bill, he hit the roof.McIntyre, I should point out, is director of Citizens for Tax Justice, a liberal nonprofit. CTJ has a well-established reputation for scrupulously honest research--McIntyre's been tutoring me about tax distribution tables for three decades--and the man doesn't waste a lot of time griping that our wallets have been picked clean by the gol-durned guv'mint. (That's Grover Norquist's racket.) But McIntyre was flabbergasted to receive a bill of nearly $60 for his daughter's cell phone, of which the majority was taxes. The city fathers of Oakland had calculated their tax based on the phone's sticker price of about $300. Consequently, McIntyre ended up paying more for the tax than he did for the phone.
Taxes on mobile phone use are so high that you might wonder whether the government considers their use a vice, like the consumption of alcohol or tobacco. A pack of smokes costs about $5, on top of which state tax will add, on average, $1.45. That's an average tax rate of 22 percent. In the states of Nebraska, Washington, or New York--where taxes on cellular service are highest--the combined state and local tax is 18 or 19 percent, which isn't too far behind. Nationwide, the average state-local tax burden on cell phone service is 11 percent, compared with an average general sales or use tax of only 7 percent.
...The only logical reason to maintain the current tax scheme would be to discourage cell phone use. That's why we have sin taxes on unhealthy stuff like Marlboros and Coca-Cola. ... ! If we're going to chide cell phone providers--as we should--for adding sneaky fees to your bill, we mustn't ignore the government when it does the same.
Voters need a remedial math lesson -- that when they vote for lawmakers like Barbara Boxer who throws money at anything that crosses her desk and when they vote in boondoggles like the "high speed" train -- the money for them will not rain down from the sky like snowflakes.
On a related note: Here are a few of the "wacky taxes" you may be paying.
The figure, $5.00, for a pack of cigarettes made me laugh. The real cost of a pack is about $.50. I guess your source forgot about our biggest tax parasite the Feds.
fatfred at February 18, 2011 3:15 AM
Amy Alkon
http://www.advicegoddess.com/archives/2011/02/18/ring_ring_hey_f.html#comment-1846523">comment from fatfredThe figure, $5.00, for a pack of cigarettes made me laugh. The real cost of a pack is about $.50. I guess your source forgot about our biggest tax parasite the Feds.
I know it's terribly taxing to put your finger on the mouse and click the link to a piece (kind of like digging a ditch or cleaning the rain gutters), so I'll pull the quote for you:
"Federal taxation of cigarettes (a federal excise tax of about 25 percent is built into the price of a pack) is much more onerous than federal taxation of cell phone use..."
Amy Alkon
at February 18, 2011 6:08 AM
Sorry, but Southwest - the air, in fact - cannot carry all the people who have to, or think they have to, travel in California.
As I have explained before, the appellation "high-speed" is merely a trick, to fool the idiot into thinking this is a high-tech device.
The real high-tech piece will be the scheduling software, which detects how many fares are waiting at the next stop, how full the train is now and where the next train is down the line, and adjust speed and thus arrival times. It sounds weird that the train wouldn't get to a particular spot on the minute, but on the average, delays would be reduced by passenger allocation modeling.
Now: notice there is no track?
AmTrak is held up routinely for freight, which progress is controlled because some track is at capacity. Trains have to hit a "window" to pass through Folkston, GA, for instance, on the way to Florida.
How does this relate to taxes? In two big ways:
First, the Feds must be involved under the Interstate Commerce clause. This is one of the few ventures where it actually applies. Your legislature has to figure out what to do to get new track laid, too. Even eminent domain costs money. The hassle is that California, especially, never seems to get that an expense should have a return on it.
Second, existing transportation has a big, giant ball of inertia which will demand to be fed, even when you don't use it. Got an Insight or a Prius? When the city/county/state/nation notices how little you're consuming, and therefore how small your tax "contribution" is, they will increase it to pay for all the equipment and people hired to cope with 1960's traffic.
So you have two big gobs of bad news. You won't be able to afford gas, and you won't have a train to ride.
-----
Lastly, you mentioned Ms. Boxer - here's a funny:
"Frankly, I don't know what it is about California , but we seem to have a strange urge to elect really obnoxious women to high office. I'm not bragging, you understand, but no other state, including Maine , even comes close. When it comes to sending left-wing dingbats to Washington , we're number one. There's no getting around the fact that the last time anyone saw the likes of Barbara Boxer, Dianne Feinstein, and Nancy Pelosi, they were stirring a cauldron when the curtain went up on 'Macbeth'. The three of them are like jackasses who happen to possess the gift of blab. You don't know if you should condemn them for their stupidity or simply marvel at their ability to form words." -- Burt Prelutsky, LA Times
Radwaste at February 18, 2011 6:22 AM
I just made up that term, "Fiscal Profligate."
- - - - - - - - - - - - -
Just curious: do you recognize any other kind of profligates anymore?
Could you name some?
Ben David at February 18, 2011 6:31 AM
Amy Alkon
http://www.advicegoddess.com/archives/2011/02/18/ring_ring_hey_f.html#comment-1846543">comment from Ben DavidI just made up that term, "Fiscal Profligate." - - - - - - - - - - - - - Just curious: do you recognize any other kind of profligates anymore? Could you name some?
Anyone whose profligacy doesn't affect me is none of my business -- or yours.
Amy Alkon
at February 18, 2011 7:00 AM
"when a Southwest flight from LA to SF is $59 if you buy it in
advance"
No argument with this, but consider that they don't feel you up for
a train ride.
Ron at February 18, 2011 7:26 AM
Amy Alkon
http://www.advicegoddess.com/archives/2011/02/18/ring_ring_hey_f.html#comment-1846553">comment from Ron"when a Southwest flight from LA to SF is $59 if you buy it in advance" No argument with this, but consider that they don't feel you up for a train ride.
And you think this won't change? Quaint!
Amy Alkon
at February 18, 2011 7:32 AM
I read that piece yesterday. I recall Noah surmising that the high taxes are likely a holdover from when mobile phones were luxury items (think Michael Douglas holding an early brick phone on the beach in Wall Street), and haven't come down even though mobile phones are no longer a luxury item. The cigarette tax is an interesting comparison – legislators are more than happy to tax the "sin" goods of booze and tobacco, and the items of conspicuous consumption. There's no large, vocal and sympathetic constituency to complain when they do.
Christopher at February 18, 2011 8:04 AM
Just curious: do you recognize any other kind of profligates anymore?
Could you name some?
Posted by: Ben David
Well there is the bitching, whiney, "why dont you ever read my mind and blog about the stuff I want to talk about because I'm too lazy to send in articles to start a discussion or start my own blog", profligates
And I know of one named Ben David
lujlp at February 18, 2011 8:13 AM
LOL!! Lujy wins this one!
Flynne at February 18, 2011 9:30 AM
Rebates occur after the product has been purchased. Why is anybody surprised that the taxes are charged against the cost of the phone when it is purchased, not after you have received the kickbacks.
This happens all the time with big ticket items (discounted interest rates, pay your sales tax, ...), but its more noticeable when you buy a cell phone for $25* (* after receiving $100 debit card, or whatever). People ignore the asterisk and are surprised at the price at the counter.
Which reminds me I need to re-read my Asterisk and Obelisk books.
The Thomas at February 18, 2011 8:12 PM
Y'all have to excuse Ben David. He can't help it. He was born this way.
Radwaste at February 19, 2011 5:21 PM
I appears that you’ve put a good amount of effort into your article and I require a lot more of these on the web these days. I sincerely got a kick out of your post!
Wendell Avetisyan at March 21, 2011 12:27 AM
Leave a comment