Taxing Target Practice

The Maryland state legislature’s recent tax hike is less than a month old, has yet to take effect, and is already drawing loud complaints.  As the Baltimore Sun reports, the latest group to raise its voice comprises citizens involved in computer services.  The article presents the familiar arguments for why higher taxes will impair the competitive position of the subject industry, and the arguments are sound; however, the proper response is not to repeal this specific enactment and exempt computer services.  The correct course of action is to stop using the tax code as a means of implementing social policy and favoring certain sectors at the expense of others.  In other words, the correct course of action is to set taxes low, and apply them to as broad a base as possible.  This will minimize tax-induced distortions in the economy removing an extraneous and unnecessary factor in the complex decisions people must make on which industry to enter, which service to utilize, or which good to buy.  For a more thorough discussion of the woeful complexity of taxes in America, go here.




  1. funny fact said,

    December 11, 2007 at 4:01 am

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  2. Mupalievevap said,

    February 24, 2008 at 9:15 am

    I think we both drifted into a incumbent grasp in this bothersome embrace, while the unattended basement TV solved on in the darkened bedroom.

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