The year seems to be flying by, it seems like yesterday the kids were celebrating the last day of school, and you were reviewing your steps to financial independence and now we are planning our back to school shopping trips.
The common ground shared by all consumption taxes is that they are paid at points of sale. Unlike income and other taxes, consumption taxes can be avoided simply by not purchasing goods or services on which they are assessed.
It’s no secret that the government taxes our spending– in fact, sales tax is one of the main ways that the government brings in money. But there are a number of other items that have their own additional taxes imposed, whether at the state or federal level. And, when it comes to cigarettes, the consumer pays both. Would it be right to call this a tax on one’s vice, or sin? While we don’t claim to be any moral authority, the figures and statistics are quite interesting.