Editorial is Opposed to Tax Hikes for the Wrong Reason

A Lawrence Journal-World editorial today expresses its opposition to a proposed sales tax increase because it would disproportionately affect lower-income people.

"It’s good that they are looking at eliminating some costly sales tax exemptions, but eliminating the exemption on residential water, electric and natural gas bills should be low on the list."

While it's true that raising sales taxes on these items would likely take a larger share of the take-home pay of lower-income than higher income people, the reason to oppose this measure is not for that reason.

The editorial veers further off course when it lists certain types of currently-exempt goods that lawmakers should consider subjecting to a sales tax.

"Raising taxes on optional purchases, like cigarettes or alcohol, makes some sense. Starting to collect sales tax on other optional purchases, like Girl Scout cookies, could be a valid strategy."

So now Girl Scout cookies are under-taxed? Good grief.

Governments should not be in the business of deciding winners and losers, but rather should apply tax law in an equal, principled and fair manner (which probably means no sales tax, a single-rate income tax, etc.). It's time to roll back sales tax on more goods, not add additional taxes on already over-taxed people.