Tax for Illinois, Ohio, Mexico, Wars, and Malls

October 1, 2009

  • Illinois Governor Pat Quinn proposes a cigarette tax hike as a “short term solution” and an income tax hike as a “long term solution.” Illinois is not exactly known for its low taxes as it is.
  • Ohio Governor wants to freeze a phased-in-over-five-years income tax reduction in its third year. The income tax cuts were the sugar in return for Ohio adopting the bitter Commercial Activities Tax (CAT), a destructive gross receipts tax. The suspension would increase taxes by $850 million.
  • Mexican President Felipe Calderon proposes a 2% sales tax hike. His legislative opponents want him to exempt food and medicine, which is a big part of the sales tax base anywhere, let alone Mexico.
  • PLUS, a tax is proposed to fund war, and a tax is passed to fund a mall. Joseph Thorndike says hawks should love the war tax because they think it’s a just cause, and doves should love it because people will balk at the cost of the war. Of course, doves will hate the war tax because they don’t think it’s a just cause, and hawks will hate it because they think people will balk at the cost. And the mall tax is simply corporate welfare.

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