Tax Lawyer Robert Wood—Taxing GaGa
Thursday, October 7, 2010 at 12:32PM As consumers and taxpayers, we may well ask what taxes are
next. And we’re not the only ones worrying. At the federal,
state and local level, taxes are big business. Faced with
budget deficits, an eroding tax base, and the legal and
political impediments to raising tax rates, what’s to be done?
Find new and untapped things to tax.
There’s Botox, tanning, music downloads (many states now
tax them), and more. Some taxes are labeled “sin taxes,”
targeting what some view as socially irresponsible behavior.
They have the dual purpose of raising revenue and decreasing
“bad” conduct. Usually they are excise taxes, such as on
alcohol, cigarettes, soft drinks and candy. They are indirect
and imposed on producers or sellers, but are usually passed
on to buyers. They differ from sales taxes mostly by being
more targeted.
