I am donning my asbestos suit as I type this...............
Why shouldn't the sales tax on cars be the same as any other product?
I'm not saying I would support it, but I would support it a heck of a lot faster than an increase in the gasoline tax, which is a far more regressive tax than a sales tax on vehicles.
The $15 increase for registration is outrageous IMO.
In theory, I tend to agree with you. However, in the face of massive budget surpluses, ANY tax increase just annoys the living daylights out of me.
"Why shouldn't the sales tax on cars be the same as any other product?"
OK I'll try. Cars and houses are the only things that come to mind in this category. Yard sales might be next.
You buy a car or a house in this state, either the first time or the last time, the state is there to get its share. If the state would be satisfied with 5% on the first sale, you have a point, but each time you sell the car, the state is there to watch the title transfer. With hands out. So if the car is sold at 20,000, the tax is 1000, in three years it is sold again at 10,000, the tax is 500, and so on.
Same thing with houses, except normally the price increases. So a sales tax at %5 on the subsequent sales would really sock the buyer.
I had the same reaction myself . . . I had no idea there were ANY states that assessed a lower sales tax on cars than on any other product.
Well said. Here in WI there are dozens of exemptions for our sales tax, and a state Dem Senator wanted to eliminate these exemptions & lower the property tax, but Gov Doyle shot it down.
Every item should be taxed at the same sales tax rate, with the possible exeception of prescription drugs. I'm all in favor of paying a single rate sales tax and abolish all the other state taxes.
Could it be because of the Car Tax? Get rid of the car tax and I'll gladly pay 5% on a new car purchase.