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Originally Posted by vtec260
Before considering sales tax, I would go for increase sin taxes on alcohol(might not be too popular with some CP members), tobacco and a couple of cents on a litre of gas.
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I know this just from Freakonomics, but I found the discussion on Gas Taxes vs. Sales Tax pretty interesting. (Again, a grain of salt with it because it is just a Freakonomics blog post)
http://www.freakonomics.com/2013/01/...o-the-gas-tax/
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Politically, the idea has one major merit: voters have consistently demonstrated greater antipathy to raising the gas tax than the sales tax. In fact, when sales tax hikes are pitched as being dedicated to popular transportation projects, voters across the country have approved them at the ballot box. It’s unclear why voters seem to prefer higher sales taxes over gas taxes: perhaps it’s because a half cent sales tax increase just sounds like less than a five cent gas tax increase, although of course this may not be true since the former falls on a much broader base. In any event, McDonnell’s proposal may be a politically feasible way to raise badly needed transportation funds.
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I find it interesting that people would rather have a small sales tax on everything then a larger increase to gas taxes.