What’s the difference between a tax and fee? There is no easy answer and the political class likes it that way. In fact, they would prefer that the public remain confused to the point of apathy.
The political class, of course, consists of elected officials, bureaucrats and their special interest allies who are to the Capitol what insider traders are to Wall Street. Working in lockstep, their approach to increasing the take from taxpayers was best outlined by Jean Baptiste Colbert, Minister of Finance under Louis XIV of France: The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.
But taxpayers are not defenseless because Propositions 13 – later strengthened by Proposition 218, the Right to Vote on Taxes Act – provides effective weapons against an insatiable government ever in search of more revenue. These include voter approval requirements. At the state level, new or higher taxes require a two-thirds vote of each house and, at the local level, voter or property owner approval requirements allow those who have to pay a government exaction (no matter what it is… Read More