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Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 748978  
Subject: Re: Steyn: Will Big Bird Ever Leave Gov't Nest? Date: 10/6/2012 6:45 PM
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2828 wrote: does anyone really think they intend to cut anything if given complete power to do so.....besides the military?

Has the government EVER eliminated a tax that, once imposed, is found to be unnecessary? Hardly ever, or it takes nearly 100 years to cancel a tax. Take the tire tax.

The excise tax on tires was first levied in 1918 mainly because of revenue needs brought about by World War I. The tax was reduced after the war, and then repealed in 1926. The levy was reintroduced during the Great Depression at a time when federal individual income tax revenues were plummeting, and was increased to help finance World War II. A general reduction in rates was in the offing just before the outbreak of the Korean conflict but revenue needs brought about by that war prevented the lowering of rates. More recent history shows that in 1956 the rate of the tax was raised in response to legislation enacted to build the interstate highway system and to create the Highway Trust Fund. Scheduled reductions did not occur after the construction of the interstate highway system had been extended. A goal of the Surface Transportation Assistance Act of 1982 was to redistribute highway costs between car and truck users. At that time, the tax structure was changed so that the tax was imposed only on heavy tires with tax rates that are graduated, and increased along with the tire’s weight. The Taxpayer Relief Act of 1997 repealed the exclusion of the value of the tires from the 12% retail excise tax on heavy highway trucks, trailers, and tractors, but provided a credit offset to the retail tax for the tire tax paid.

Under the American Jobs Creation Act of 2004 the tax based on tire weight was replaced with rates based on the load capacity of the tire. The federal excise tax imposed on tires was scheduled to expire on October 1, 2011.

More at http://www.policyarchive.org/handle/10207/bitstreams/957.pdf...
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