The Certainty (and Absurdity) of Taxes

Happy New Year! We hope everyone had a wonderful Holiday season.

Looking ahead down the road of 2013, I can’t help but stumble over the Medical Device Tax that went into effect Jan. 1. OK, I understand that the U.S. economy is not good and the debt grows everyday. I understand that as a nation we need to make certain sacrifices to help the greater good. And, while I’m not a fan of income taxes or retail taxes, I’ve never existed without them so I pay my part. But what sense is there in taxing Medical Devices?? I’ll be scratching my head for a long time over that one.

In an effort to stop the head-scratching and see the absurdity of taxes in a larger context, I found this list about some strange taxes imposed throughout history. Here are some of the stranger ones:

• During the Middle Ages, European governments placed a tax on soap. Great Britain didn’t repeal its soap tax until 1835.

• Oliver Cromwell placed a tax on Royalists, who were his political opponents, taking one tenth of their property. He then used that money to fund his activities that were aimed against the Royalists.

• In 1696, England implemented a window tax, taxing houses based on the number of windows they had. That led to many houses having very few windows in order to avoid paying the tax. Eventually this became a health problem and ultimately led to the tax’s repeal in 1851.

• In the 1700’s, England placed a tax on bricks. Builders soon realized that they could use bigger bricks (and thus fewer bricks) to pay less tax. Soon after, the government caught on and placed a larger tax on bigger bricks. Brick taxes were finally repealed in 1850.

• In 1789, England introduced a tax on candles. People were forbidden from making their own candles unless they obtained a license and then paid taxes on the candles they produced. The tax was repealed in 1831, leading to a more widespread popularity of candles.

• England has a tax on televisions. If you own a television in your home, you must pay an annual fee, formally called a television license, for each television you own. Color televisions are taxed at a higher rate than black and white televisions. Interestingly enough, if a person is blind an owns a TV in his or her home, he or she still has to pay the tax, but only half of it.

• Pennsylvania has a tax on coin operated vacuum machines at gas stations.

• States like Iowa, Pennsylvania, and New Jersey exempt pumpkins from a sales tax but only if they will be eaten and not carved.

• In Arkansas, body piercings, pet grooming, and gutter cleaning are all subject to a 6% sales tax.

• In Chicago, candy that is prepared with flour is taxed as food at 1%, while candy that is prepared without flour is taxed as candy at 6.25%.

• In California, fresh fruit bought through a vending machine is subject to a 33% tax.

• The IRS taxes stolen property. The 1040 instructions say that you should report it as stolen property. However, doing that would be self-incrimination, from which we are protected by the Constitution; therefore, one has the option of reporting it as “other income”.

• Wisconsin is one of the few states that levies a tax on internet access. When dial-up was a popular method of getting online, there was double taxation occurring because phone calls were also taxed.

• In New Mexico, people over 100 years old are tax-exempt, but only if they are not dependents.

• In 2004, Maryland imposed a tax on residents whose houses are hooked up to sewers leading to treatment plants. Proceeds go to protect the polluted Chesapeake Bay.

• In Minnesota, there is a special tax on fur.

• In the state of Kansas, untethered hot air balloon rides are exempt from sales tax because they are considered a legitimate form of air transportation. Tethered hot air balloon rides, on the other hand, are considered to be an amusement ride and therefore are subject to sales tax.

Nope, that didn’t work. Still scratching…

List courtesy of efile.com

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