Wednesday, January 27, 2010

Colloton hates her constituents proposes tax hike.

Wow, ballsy move from Pat Colloton. Her district is right on the state line and she wants to raise the liquor tax.

This tax would make the small business owners in her own district less competitive with stores just across the street. Surely, some of them would fail as people go across the state line to save a few bucks. In Kansas almost every liquor store is a small business and they already face serious obstacles in competing with Missouri stores. Colloton would like to add another.

I know Colloton is a big advocate for people with disabilities and this tax would go toward the underfunding of those programs and for mental health programs. Noble gesture. She might just be offering her job or at least a serious primary challenge from some Tea Bagger in this anti tax environment.

They are quick to point out that this tax is paid by manufacturers but remember that manufacturers only collect taxes they don't pay them. In other words, they are passed on. Manufacturers will actually LOVE this higher tax as an excuse to raise prices beyond the tax. If you don't believe me, check out what happened in Illinois about 10 years ago. They will move every product up to the next price point (from $5.99 to $6.99 for example) even though the tax isn't that much. They would never absorb the can forget that.

All in all, when I saw a proposed cigarette tax increase I knew liquor was next. It always is. To bridge the shortfall in tax revenue I guess it isn't a horrible idea and better than 1% increase in the sales tax BUT coming from the lady whose constituents will be affected the most? Again, I say WOW.

1 comment:

Winston said...

Why would a person whose district is on the state line propose something like this? It doesn't make sense.

If I owned liquor stores in her district and knew I'd be less competitive with people across the state line I'd be pissed at her.