Righteous Taxes?

The key to understanding the true Democrat agenda is to replace the word “reform” with the word “tax”.  To make things worse, they are now seeking to tax your carry-on luggage.  And the best part is that this tax on Americans, no matter how much or how little they make, is being disguised as some sort of valiant effort to protect consumers from greedy corporations.

It is a sad thing when the Senators in charge of ensuring that corporations play by the rules and that interstate commerce is appropriately regulated have no idea about one of the simplest concepts in economics.  Corporations don’t pay taxes.  This idea that corporations pay taxes is about as ridiculous as if you were to tell the cop that it was your car that was speeding, not you.

So you can imagine my disbelief when Chuck Schumer, D-NY, announced that Spirit Airlines should be taxed if they decide to charge their customers for carry on bags.  Apparently this is supposed to punish Spirit?  The effect however, would actually be that Obama’s government would get it’s cut of the new carry on fee from consumers.  Nothing else.  After all, shouldn’t government get their fair share?  When it comes to racketeering, they are the experts.

When corporations are taxed, there are three potential groups of people who must pay those taxes: the owners, the employees, and the consumers.  Employees pay the tax because profits are scaled back and it affects their raises, benefits, or even perpetuity of employment.  Consumers pay the tax when corporations factor that tax into their costs and pass that cost on to you.  The owners pay the tax when the dividends hit your 401k and you suddenly realize you have to work an extra five years to retire.  By the way, the owners are the ones who get to decide which of those three groups pays the tax.  Do evil CEOs pay taxes on consumer products?  Sure, but not in any progressive manner.  Only if they choose to fly Spirit Airlines and take a carry on bag.

Actually, what is really happening in the case with Spirit is that they have found a way to reduce the taxes you pay, and the party in power doesn’t like it.  You already pay taxes every time you buy an airplane ticket.  Spirit charges a very low ticket price, but then lets you choose to add on other fees for checked bags, certain seating, peanuts and drinks.  By not including those in the ticket price, they save you taxes.   If they can’t tax you more through your ticket, Democrats will look for new ways to tax you.

But doesn’t Schumer have a point?  Isn’t it ridiculous for Spirit to charge you for your carry on bag?  Why do they hate your bags?  Here is another concept Democrats like Schumer just don’t understand: consumer choice.  Nobody is forced to fly on Spirit Airlines.  Who flies Spirit instead of say, Southwest?  The people who would rather pay less for their flight and don’t have overhead luggage.  As long as we have a free market with choice and competition, Spirit will learn quickly whether their idea of carry on fees was a good one or not.  Already some of the major full service airlines are learning that fees on checked baggage were not such a good idea.

On the other hand, let me tell you a personal story about Ryan Air.  Ryan Air is an airline that flies in Europe.  They have very low rates, but charge fees for everything.  Last I heard, they were planning on charging for restrooms.  But last year about this time, my wife and I left for three and a half weeks in Europe.  We had a very tight budget, but wanted to see as much as possible and spend as little time in trains or cars as possible.  We went bare bones with nothing but the backpacks on our backs, and I’m not talking about big hiking backpacks.  I’m talking about packs that we could carry on with an airline like Ryan Air whose carry on size limit is less than in the US.  But our packs were small enough, and we flew from Paris to Rome for less than it would have been to take a train.  I am very thankful for an airline that let us choose what we wanted to pay for.

We knew a Democrat administration meant taxes across the board.  Anyone who bought the line that only the rich would pay higher taxes under Obama probably voted for him too.  They only need to find ways to make the taxes sound good.  Don’t let this carry on tax fool you.  In the end, you will be the one who pays it.

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