Taxing Puzzles

I’m not sure that I’d exactly be considered a supporter of Ralph Nader for, well, much of anything. But I’ve got to hand it to him for at least pointing out the inanity of our current taxation system. His example? You go to the store and buy furniture, you pay taxes. You buy stock, you don’t. Now of course he didn’t mention that you will pay taxes when you sell the stock, which doesn’t happen when you sell the sofa – but the point is probably a good one.

Why is it that necessities are taxed? While it may certainly put a crimp in the government’s plans if they had to forego the taxes from necessities, it would certainly make life more affordable for those who like to eat.

Specific to North Carolina (though I don’t suspect it’s unique), we see the state raising college tuition – in essence increasing the taxes on education. Meanwhile, the state (and perhaps this is unique) won’t raise the tax on cigarettes. Naturally this is because North Carolina is most certainly a tobacco-producing state. But it doesn’t really make a lot of sense, does it?


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