Taxes and tax cuts are a major focus of the present political climate. Yet, it seems to me that people are easily misled. They don’t understand very well how the tax paid relates to income and more to the point of this post what should be considered a tax. I have two examples
Tariffs make the best example. We are told by the present President that our nation benefits from increasing tariffs on imports because money flows into the coffers of the U/S.. This may be true, but the reality with tariffs is that consumers either pay more because they purchase goods and services originating in the US, or they pay more for imported goods because of the tariff. The exporter does not pay the tariff. This increase in the cost of goods, no matter the origin, is essentially a tax.
I think it can also be argued that the removal of a safety net program such as Medicaid is also a tax. If you have ever spent time in a public hospital emergency room you should understand why. There are folks there needing immediate help. There are also people there with less severe problems – say a family with a child who has a painful ear infection. Why doesn’t the child with the ear infection seek help from a family physician or urgent care? The answer is likely that the family does not have medical insurance and the public hospital will not turn people needing help away. Who then pays for the costs of the “freebies”? We all do. The hospital has to meet expenses and the option without safety net support is to charge more of the people who can pay – a tax. Preventative care and treating problems before they become serious and more costly would be a better approach.