As the Denver Post reports:
For Libertarians, it is a step toward social engineering.
But to Gov. Bill Ritter, a proposal to tax candy and soda-pop sales is nothing more than a way to help close a widening budget gap.
Regardless of the motivation, if Ritter’s idea is adopted next year by the legislature, Colorado would become one of a growing number of states and localities going after candy bars and soft drinks.
And, like cigarettes and liquor before them, sweet treats would achieve a special status as items whose consumption is discouraged by the very governments that become dependent on the revenue they provide.
Ritter’s office estimates that eliminating the sales-tax exemption for candy and soft drinks would generate $17.9 million and help avoid deeper cuts to schools and colleges.
“We thought that people would be willing to pay 3 cents on a dollar candy bar,” said Ritter, who once spent three years running a nutrition center in Zambia before resuming his law career. “We just viewed it (allowing the sales tax) as something that doesn’t do anything to our (state’s) competitiveness.”
Sounds right to us–very few people will even notice that they’re being charged three cents on the dollar to buy their Snickers bars and Cokes, and most dentists we know will forgive any resemblance to “social engineering.” Didn’t somebody say the same thing about tobacco taxes back in the day? If that’s the best they’ve got, repealing this exemption isn’t much of a controversy.
That said, there’s always somebody out there whose well-compensated job it is to complain, no matter how good an idea may seem from a health or fiscal policy point of view. In Colorado that’s Jon Caldara, set your watch to it:
“Not only has Ritter already hacked off taxpayers in Colorado, he’s now going to hack off children as well,” said Jon Caldara, president of the Independence Institute, a Golden-based libertarian think tank.
“I think the governor needs to sit down and watch Willy Wonka a couple of times and stop being such a buzz kill.”
Yeah. Is he done? The, ah, grownups are talking.
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We’re going to need a lot more revenue if we’re going to solve this budget crisis. This seems like a lot more of the same kind of tactics we saw from the legislature last year to try to create the appearance of solving problems.
I personally don’t have a problem with tacking on 3 cents per candy bar or soda bottle, but this isn’t a solution for the higher ed problems this state is facing. Adding $18 million is great, but we need about ten times that amount to sustain current levels of education funding.
Because the Governor has decided to cut the vast majority of the funding he needs to balance the budget from higher ed, we’re going to see one of the largest de facto tax increases in the history of this state. It might be using Republican logic, but the unwillingness on the part of the Governor and the legislature to make the tough choices is going to create a pass-through of thousands of dollars to middle class families to continue putting their kids through college.
This a stop-gap. It’s slightly better than what the legislature did last year with the band-aid they tried to put on the gaping wound that is the state budget, but it’s not that much better.
Politically it will probably be fine (like Pols said, people won’t notice 3 cents, though Republicans will probably add this to the ole talking points list for 2010) but we need long-term, sustainable solutions for the budget, not more band-aids.
but, in fairness, the article also says:
Now 132 million isn’t a billion either, but its a good faith step.
I didn’t read the article, so forgive me for sounding harsh. It’s just that, as a college student, I feel especially angry that we were pretty much singled out as the biggest recipients of cuts from the Guv’s office. It makes sense: we’re not that well organized and we certainly don’t vote in droves, though our parents do.
No matter what, removing tax credits and exemptions isn’t going to be our life preserver. We’re going to have to repeal TABOR or get the voters to pass a tax increase if we’re going to get out of this mess.
At any rate, if we’re going to repeal anything, it should be the $320 million tax credit for the O&G industries. Ritter failed to pass A-58, which would have saved a lot of the stress we’re facing right now incidentally, but that doesn’t mean that we should give up trying to get rid of that 30-year-old anachronism in our tax code.
prisons & higher ed. Everything else has it’s budget baked into the constitution. We either educate you today or imprison you tomorrow.
Wait, now people are going to prison because they can’t get college educations?! Really?
of the population at large vs prisoners. If we worked to get every child into and through college, we would drop the crime rate substantially.
and high school graduation first, David.
Higher ed funding has a huge effect on the state — making it attractive to employers, keeping exceptional students in-state, bolstering important industries — but it’s got nothing to do with keeping residents out of prison.
but every time I say that all the public school teachers want to have me lynched 🙂
everyone gets to transfer to one of the UCcampuses.
Start small- all the departments that overlap.
tax exemptions skew the market. When there are no exemptions then it has an even impact on the market.
Willy Wonka: Uh, you really shouldn’t mumble. Because I can’t hear a word you’re saying.
Willy Wonka: Once again you really shouldn’t mumble, ’cause it’s kinda starting to bum me out.
Willy Wonka: MUMBLER! Seriously, I can’t understand a word you’re saying!
Send misbehaving Caldara down the trash chute with the rest of the nut-cases.
getting rid of a tax exemption is a good idea. There are a few other foods that could be removed as well.
That any of the exemptions are still around baffles me at this point. We’ve had several years of cutting the budget under Republicans and Democrats. It’s time to re-examine all of the tricks and gimmicks we’ve built into the state constitution and tax laws. Unfortunately, that really needs to come from the governor and I don’t think we have one – or one on the horizon – who has the political power to make that happen. I was disappointed with Romer and his failure to get very far on his Smart Growth agenda. I can now see that it is more a result of the structural weaknesses of the office.
Which leads back to next steps. I’m afraid and glad, at the same time, that in Colorado it will have to be done incrementally. Which is why outfits like the Independence Institute will continue to be important – they are a source of leadership and long term thinking. (The Bell comes to mind on the Democratic side.) Hopefully, some one, some where, is working on the next steps regarding TABOR.
The R’s are consistently saying that the increase in fees for vehicle registration and the addition of late fees under the FASTER bill are a de facto tax on Coloradans (even though it is really an increased user fee.) Why don’t they think that another 9% increase in higher education tuition is the same thing?
The governor and legislature need to look closely at every corporate welfare provision be it subsidies, exemptions, interest-free loans, or credits in order to find the right balance for Colorado. Right now are kids in K-12 and our public universities are being left behind, and we will never get the chance to make it up to them if we fall short of our obligation of a quality public education in Colorado.
Couldn’t agree more.
I believe most Libertarians would be in favor of this change to the tax code. No social engineering involved. Buying a soda or candy bar is a choice. We’re all about choice.
This would end what is effectively a government subsidy of a particular industry. We do favor ending subsidies. This tax break supports what some Libertarians call corporatism. We favor capitalism not corporatism.