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If a soda tax curbs obesity what does tax on business curb?

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Connecticut recently shut down the roll-your-own tobacco industry after first taking a store owner to court and losing. The state was charging that the tobacco shop, and all others like it, were skirting a particular tax law that enabled their product to be sold below the price of conventional cigarettes. After losing the suit they changed the law so that if a judge makes another decision like the one before, he or she will find that the rules have changed in favor the state.

The shops had their own machine where tobacco and tube paper were loaded into slots and the cigarette product was made. The customer operated the machine, therefore the store owner was not a manufacturer. If the store were to make the product then they would be labeled a "manufacturer" pay the tax and therefore not able to remain in business. Works all the time.

A Connecticut legislature wants to curb obesity and the way he wants to do this is to tax soda at 2% thinking that if the product were more expensive then people would buy less of it and therefore it would cause less fat people in the state. Such people happen to be morally repugnant the way smokers are. Make them pay.

So we have here an admission of what taxes do. It discourages activity. The tobacco shops are now all closed throughout the state because they could not pay the manufacture tax. What is the purpose of the manufacturer tax in the first place, and since we're on the subject whatever happened to all those manufacturers Connecticut used to have?

But having a manufacturer tax is the least of it. There are various other "business" taxes on top of it too. Business has to pay their fair share, right? But don't look for the legislature,or any other tax hungry politician to make the connection when one day they propose a tax to discourage an activity and then months later propose to raise an existing tax on those who employ people. When we have less people employed, something must be discouraging business from hiring or even staying in the state.



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