Tuesday, February 27, 2007

Tax, Spend, and Save?

The Washington Post reports that the Arlington County board is considering an energy tax that could end up costing up to $26 per resident. Small change for our big Northern Virginia salaries, isn't it? Ignoring the concept of taxing because we can afford it, I want to discuss some of the rhetoric coming from the County.

The article quoted County Manager Ron Carlee in saying that, "the "modest" utility tax may encourage residents to curb consumption." Before and after this quote, the article lists a number of things that the extra revenue should help pay for. Here's my question:

How can the County expect the tax to reduce consumption and increase revenue?


I get suspicious anytime a government claims that a tax will somehow reduce the need for itself. My suspicion is that the idea of reducing consumption is just the thing that the public needs to sway opinion in favor of a tax increase. Mr. Carlee even called the tax modest, which indicates to me that very few people will change their behavior in order to avoid it. Most people will pay it and continue with their current level of energy consumption. In fact, most people who would curb their behavior to save $26 have already done so, simply for the feeling of having done something good for the environment.

In short, don't be convinced of the good virtue of the County on this. This is simply a ploy to get revenue, much of which may offset costs that are hardly related to energy and the environment.

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