Discriminatory Taxes Fueled the Whiskey Rebellion. They Remain Bad Tax Policy Today: Jonathan Williams on American Radio Journal
With each extra tax, the lessons from the 50 laboratories of democracy become even clearer. Excise taxes do not fit into the principles of sound tax policy.
In his latest American Radio Journal commentary, ALEC EVP of Policy and Chief Economist Jonathan Williams explained the problems with discriminatory taxes.
In day-to-day life there are some taxes that everyone is familiar with. Personal income taxes, sales taxes, corporate income taxes and property taxes generally get the most attention, in part because they collect the most revenue. But there are also countless targeted taxes on goods and services from gasoline to alcohol, tobacco, vaping, cellphone plans, cable bills and more.
In the United States, the history of these taxes goes back to before the nation was founded. Printed documents, sugar, wine and silk were some of the many products in which American colonists paid taxes to the British. Famously, the tax on tea inspired the Boston Tea Party in the lead up to the American Revolution. In 1791, a violent protest broke out over a federal tax and distilled spirits. The Whiskey Rebellion, as it came to be known, was eventually put down by none other than President George Washington. But this continuous history and long history of excise taxes has not stopped state governments across the country from imposing them, increasing them and creating many new taxes over time.
With each extra tax the lessons from the 50 laboratories of democracy become even clearer. Excise taxes do not fit into the principles of sound tax policy. Generally, the best tax systems minimize the impact of government micromanagement on the economy. They take the approach that taxes should apply broadly and at a low rate. This way the free market can expand businesses can create jobs and Americans can earn a living and live their lives without taxes getting in the way.