Friday, February 17, 2006

Cell phones for schools

The Oregonian weighs in on Portland's school funding problems by suggesting a 1-year 5% tax on wireless service cell phones.

These sorts of taxes are troubling. There is no linkage between the thing being taxed and the service being provided. Why tax cell phones? How about coffee or microbrews or hamburgers? Why not every good or service that is sold?

In the rest of the world such taxes are called sales taxes. We can't have sales taxes in Oregon because the electorate won't allow it.

A cell phone tax is a sales tax. Cell providers sell a service and the City would slap on 5% to the bill. If it quacks like a duck ...

This is not too surprising from the O. From time to time, the O shoots lustful glances at the sales tax. In 2003, the editorial board twice recommended a statewide sales tax.

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