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If you think about it, fines and penalties are actually another form of stealth taxation: first the public is taxed to fund the operation of an agency, law enforcement, regulatory, etc. And, when revenue from fines exceeds budgeted amounts, instead of using the excess to offset operating expenses, the money is used for some other purpose. At the very least, the public pays the cost again by virtue of the fines that are not applied to help cover the costs of funding the agencies involved by a like amount.

Another interesting fact is that fines and penalties are not tax deductible. When violators, corporate or individual, pay their income taxes, in effect they pay additional taxes on the amount of the penalty that has been imposed because it cannot be included as part of the cost of doing business. Thus, a $450 million corporate fine could actually amount to something on the order of $600 million ($450 million plus $150 million tax).

When it comes to finding ways to fleece taxpayers without their even being aware of it, politicians and bureaucrats are usually found at the head of the class.

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NOTE: Read more of Harris Sherline's commentaries on his blog at "opinionfest.com."

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Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA.

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