I mean, I won’t speak for you, but a lot of sales taxes are regressive, hurting the average consumer a lot more than those who can and should be paying more (on account of their benefiting from the common infrastructure more, while also placing greater strain on it), but I will concede there are sales taxes that make sense, and fuel taxes are one of them.
I will argue that the introduction of many sales taxes were a mistake…
But once they exist, removing them won’t help consumers because the market will just raise prices to suck up the difference. It’s a ratchet effect.
Edit: If we ever want to “reverse” a tax, then the solution is just to send people thier cash back after the fact. Like the Carbon rebate program (that 80% of Canadian households ended up getting more back in rebates then the paid in carbon taxes. Great program. Good politics to reverse, but terrible policy to reverse)
I mean, I won’t speak for you, but a lot of sales taxes are regressive, hurting the average consumer a lot more than those who can and should be paying more (on account of their benefiting from the common infrastructure more, while also placing greater strain on it), but I will concede there are sales taxes that make sense, and fuel taxes are one of them.
I will argue that the introduction of many sales taxes were a mistake…
But once they exist, removing them won’t help consumers because the market will just raise prices to suck up the difference. It’s a ratchet effect.
Edit: If we ever want to “reverse” a tax, then the solution is just to send people thier cash back after the fact. Like the Carbon rebate program (that 80% of Canadian households ended up getting more back in rebates then the paid in carbon taxes. Great program. Good politics to reverse, but terrible policy to reverse)