Stealth Taxation - Part I
By Harris R. Sherline
July 21, 2008
America's politicians keep finding ways to levy taxes without having to ask for voter approval or, for that matter, to even make them aware of what they (the politicians) are doing. This is both a politically useful and seemingly painless way of creating new taxes for favored programs that do not necessarily have the support of the public. The concept works because voters do not fully understand the process and are usually unaware of what is happening to them or when it happens.
It's brilliant in its simplicity. The federal government requires the states to adopt certain programs or comply with various federal laws without providing the money to implement them. With a simple stroke of the pen, lawmakers are able to impose a wide variety of programs on the states at relatively little cost at the federal level.
Unfunded Mandates
The concept, which is generally known as "unfunded mandate," is defined as "... a statute that requires government or private parties to carry out specific actions, but does not appropriate any funds for that purpose."
The idea has been so successful that many states have imposed their own "unfunded mandates" on the cities and counties in their jurisdictions, which shifts the costs down to the local level, thereby creating another tax without voter approval.
"Unfunded mandates" date back to feudal times, when serfs were required to turn over a portion of their crops or earnings to their lords, who eventually "... insisted on the fulfillment of certain duties at the serfs' own time and expense." (Wikipedia)
Legislators resort to many tricks to impose taxes on an unsuspecting or ill informed public, but perhaps the most egregious is secrecy. And, "unfunded mandates" are generally adopted without most voters realizing what is happening, which is a form of stealth taxation.
States Resist
But, the states are becoming increasingly active in resisting such laws. In a study titled, "Home Rule: How States Are Fighting Federal Mandates," by Thomas Atwood, The Heritage Foundation reported on the impacts of "unfunded mandates." Among his many observations, Mr. Atwood noted:
>"Aurora, Colorado, for example, calculates that it will have to repair some 28,000 curbs in order to comply with the 1990 Americans with Disabilities Act (ADA) at an average cost of $1,500 per curb." (NOTE: With total projected revenue of $228.5 million and a capital budget of $336.1 million for 2006, it is clear that the $420 million cost of curb cuts is far more than the city can afford.)
>"...Anchorage, Alaska's sewage inflow was so clean that the municipality could not meet Congress's requirement that all sewage treatment facilities reduce incoming organic waste by at least 30 per cent. Still, the federal Environmental Protection Agency insisted that the city meet the arbitrary standard. Anchorage's response was to arrange for two local fisheries to dump fish viscera into the river so the city could remove them."
>"Arizona legislators have complained that the Clean Air Act is too strict even for the naturally occurring dust from Arizona's deserts, let alone automobile emissions...."
>> Continued -- Page 1 2
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