Chicago Herald: New Chicago bag tax will boost revenue, but will it cut waste?
media mention“Meg Wiehe, state tax policy director at the Institute on Taxation and Economic Policy, a research group based in Washington, D.C., said these one-off taxes on goods exacerbate income inequality. The tax code can’t correct the problem, she said, but it shouldn’t make the problem worse.
What’s more, if the tax works as intended, revenue is designed to fall as less people engage in the ‘bad behavior.’ This is why critics also warn against using them to fill budget holes.”
Meg Wiehe, state tax policy director at the Institute on Taxation and Economic Policy, a research group based in Washington, D.C., said these one-off taxes on goods exacerbate income inequality. The tax code can’t correct the problem, she said, but it shouldn’t make the problem worse.
What’s more, if the tax works as intended, revenue is designed to fall as less people engage in the “bad behavior.” This is why critics also warn against using them to fill budget holes.