Stealth Taxes March 19, 2010 Joseph Bishop-Henchman Joseph Bishop-Henchman Ever since Walter Mondale was pilloried in 1984, it's been the rare politician who makes a stand for higher taxes. Even President Obama sold his program during the campaign as lowering taxes for all but high-earners. We at the Tax Foundation work a lot on tax definition issues, and I often argue that it's important for two reasons. One, many states have stricter legal requirements for tax laws (multiple readings, public votes, etc.), so a firm definition is important. Two, Americans are more skeptical of things labeled "tax" than other revenue proposals, a skepticism that dates before the Founding of the Republic. Maybe not just Americans. An excellent New York Times piece lists some stealthy taxes being proposed both here and abroad: France has introduced taxes on crustaceans and mollusks to pay for diesel fuel subsidies for fishermen. A higher airline tax in Britain will go to the general fund, despite rhetoric that it would further environmental efforts. Also there's a "horse tax" proposal that I don't fully understand. Northern Ireland increased the cost of dog licenses ten-fold. The article notes that average VAT (sales tax) rate in the European Union rose to 19.8% in 2009, up from 19.5% in 2008. Full article here. Have you come across examples of stealth taxes? Send them to me at henchman [at] taxfoundation.org. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy Sales Taxes Tax Law Value-Added Tax (VAT)