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  1. #1
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    So where did all our tobacco tax dollars go?

    $5B+ in tobacco tax revenues annually, really? Where does all that money go?

    Even in America’s private healthcare system smokers are cheaper to treat over their lifetime | LifestyleReviews

    I'm not sure whether SAS might have referenced this previously, but someone recently shared it on one of the FB vaping groups so I thought I'd share it here. Lots of interesting articles in that blog, too!
    Last edited by zainwolf; 20-03-12 at 07:31 PM.

  2. #2
    Goz
    Goz is offline
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    Well those salary increases for the politicians don't come cheap, neither do all those failed military programs.

    It certainly hasn't gone into the health care system. I could go on about that subject in detail from personal experience.

    Seems to be a pattern, they increase taxes to pay for something but the money never seems to get spent in those areas the taxes were increased to pay for.
    So where is the money going?


    "Any sufficiently advanced technology is indistinguishable from magic." - Arthur C. Clarke

  3. #3
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    I believe the rhetoric is that the tax is a deterrent not that it is to provide for health funding. It all goes into general revenue. The idea that increases in tobacco taxation is to counter the costs of smoking on public health is a bit of a media myth AFAIK. I am happy to stand corrected though...
    Beware of he who would deny you access to information, for in his heart he dreams himself your master.

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  4. #4
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    I always thought of the taxes not as a way to handle the health costs, but as a deterrent. They rise taxes and the cost of cigarettes to discourage their use, and the excessive income is a side effect of that.

  5. #5
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    What about the tax.. oops, I mean.. "excise" on fuel with the added GST on top?

    ""Over a four-year period it is projected that there will be a $36 billion shortfall between the amount of fuel tax paid by motorists and investment in land transport infrastructure," the AAA said in its Budget submission to Treasurer Wayne Swan. The AAA calculates the Government will get $57 billion in fuel excise from motorists over the next four years and invest just $21 billion in land transport. The revenue comes from the 38.1 cents-per-litre (cpl) fuel excise which has been frozen since 2001. "

    "...
    On one hand, the government frequently attacks petrol suppliers and service stations for being greedy, yet most petrol stations make around 1 to 2 cents profit on each litre of fuel. However, on a litre of petrol costing $1.50, the rapacious federal government gets a whopping 38.1 cents plus GST of 15 cents, totalling 53.1 cents..."

    ------------------

    ILLEGAL TAXES

    It is interesting to note that some of these indirect taxes are actually illegal. Under current legislation, applying a tax on a product or service that is already taxed is against the law, so levying an excise on fuel that is already taxed by GST is blatant double-dipping and illegal, but the Federal Government has been getting away with this scam since 2000.


    There are a number of other taxes that are obviously illegal, such as the Luxury Car Tax. Under the Australian Constitution that supersedes any other law, a tax on a tax is illegal, therefore a High Court action by all concerned parties should be launched to force the Federal Government to not only immediately stop applying the Fuel Excise, but to compensate all motorists for the years that they have paid this illegal tax.


    Take from:

    http://www.carr.org.au/
    To view my e-cig reviews and videos visit: http://www.youtube.com/user/light487

  6. #6
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    But don't the tricky devils get away with it because they put excise on the fuel first and then it is still legal for them to put a GST on it, as excise is not regarded as a 'tax' perse. If an excise isn't a tax, then what is it - a banana?

  7. #7
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    Quote Originally Posted by arjay55 View Post
    But don't the tricky devils get away with it because they put excise on the fuel first and then it is still legal for them to put a GST on it, as excise is not regarded as a 'tax' perse. If an excise isn't a tax, then what is it - a banana?
    Yes, that's the point that website makes.. just because you called it by a different name doesn't change what it really is. If you choose to call a car a thingy-ma-jig.. it's the same thing regardless of what name/term you use. However, as they are the law makers they only have to make a legal definition of what an excise (read: excuse) is and ensure it is defined as something different to tax, and then they're covered.. but you can't as easily explain away the "Luxury Tax" and "Import Tax", which is not exclusive to cars.. but also things like musical instruments and many other things. Then they slap GST on top of that.. the fact they called it a Goods and SERVICES Tax allows for double-dipping because they can simply say that you're paying the 10% on the sales service rather than the sale of the goods. see? Ingenious isn't it?
    To view my e-cig reviews and videos visit: http://www.youtube.com/user/light487

 

 

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