Reply #148: Excise (consumption) taxes are inherently regressive. Period. [View All]

[TahitiNut]

I don't know what kind of hallucination creates the surreal notion that the nature of such a tax is altered merely by an individual choosing not to (or UNABLE to) buy the particular item taxed ... but that's just nonsense. By that kind of 'reasoning' we can just increase taxes on ALL consumables and price the poorest out of any consumption what soever. The idea that the poor are thereby priced out of the market and unable to buy goods does NOTHING to make such a tax less REGRESSIVE. Hell, that would make enormous taxation of consumption LESS regressive? Total nonsense.

The observation that "money is fungible" is an example of an over-reaching claim. While one might say that somewhat accurately regarding taxes overall, that does NOT mean that it applies with regards to all the alleged costs being targeted. Furthermore, there is no discernible direct offset whatsoever for those who bear the greatest costs. Indeed, that's the case when it comes to health care - since the tax system is only very loosely coupled to the health care system, despite our desire that it be otherwise.