Tuesday, October 19, 2010

Resolving the Issue of SSB Taxation

My proposition to resolve the debate over the SSB tax issue is to allow the local governments to make a decision whether or not they want an SSB excise tax. Since this is the lowest level of government, they have the most direct control over its citizens. They can look at the specific statistics of their area and decide if the health and financial stance needs assistance or not. The federal government should not impose a nationwide tax; however, they should encourage state governments to make a decision on whether or not they want to impose an additional excise tax.
State governments can impose excise taxes in order to assist both health crises and financial crises. 46 states have faced budget shortfalls in 2010. If states imposed an excise tax, their budget deficits would shrink. State governments can then use this money to get out of the millions 2010 marks the largest state budget shortfalls in history. Since states already have state taxes and/or small excise taxes, they might want to reconsider the amount of taxation and may decide to raise the amount of excise tax.

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