Since Government produces only regulations, Tax is the way Government finances itself.
It is a common misconception, that taxes are for the benefit of those who pay them.
But bear with me for one minute when you hear that taxes are for the benefit of those who do not pay them. If they were for the benefit the taxpayer, they could just keep the money, but the funds are destined for other people.
The answer is all the time
Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Hunting License Tax
Inheritance Tax Interest expense (tax on the money)
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Local Income Tax
Marriage License Tax
Real Estate Tax
Recreational Vehicle Tax
Road Toll Booth Taxes
Road Usage Taxes (Truckers)
Septic Permit Tax
Service Charge Taxes
Social Security Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer Registration Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
One of the worst effects of tax, is that where finances raised are spent directly on something against the taxpayers conscience. E.g
Also it can cause capital to be mis-allocated.
Tax reduces peoples ability to act morally. They might prefer to spend their money on helping their children become good citizens, caring for their elderly relatives or supporting good causes. Instead they see it go towards bank bailouts, foreign wars and expensive prestige projects.
Tax makes people less responsible for themselves and others and instead makes us agents of the state. A society cannot be generous and caring, when the money is forced out of their hands.
We pay so much tax, that we convince ourselves we have no social obligations.
We walk blindly past crime, vandalism and neglect, reassuring ourselves that these are things for officials to deal with.
Dead-weight cost http://www.cityam.com/forum/the-deadweight-the-money-go-round
High taxes suppress economic activity reducing incentives to:
Tax has a tendency to not treat all economic activities in a similar manner. In a non neutral tax system, people and firms have an incentive to devote socially wasteful effort to reducing their tax payments by changing formor substance of activities.
Sin taxes should be slashed. Given the low price elasticity of demand for the taxed 'sin products', this would not lead to a massive increase in 'sinning'. It would, above all liberate resources of low earners budgets for other uses.
It has long been a principle of English law that someone should not have the benefit of unjust enrichment.
Not only this but...
Louis XIV’s finance minster, Colbert, had a dictum any tax raiser should heed:
“The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing”.
A hypothecated tax is one raised for a particular purposes, for example, to pay for a health service. The British television licence is an hypothecated tax, but that is about it in Britain for hypothecation.
Attractive as the idea of an hypothecated tax is, they have two main practical drawbacks. It is very difficult to continually (and possibly retrospectively) adjust expenditure to match revenue.
http://www.bbc.co.uk/news/business-22676080 (avoiding tax and is tax voluntary)
http://www.bbc.co.uk/news/uk-politics-15843746 What you pay and what you get back
http://www.bbc.co.uk/news/business-29898083 Where the tax goes