4 ms·
A couple of points: 1. More government revenue does not always equal more community needs being met. Many times it is just the means for more fraud, waste, and
by frogpelt 12y ago
A couple of points:
1. More government revenue does not always equal more community needs being met. Many times it is just the means for more fraud, waste, and abuse.
2. Also, to say that hotel taxes do not "seem to really impact demand" amounts to hand waving. Every cost affects demand to some degree or another. What about the impacts of paying a 15% hotel tax on other local businesses? A family may eat fast food instead of more upscale restaurant to offset the added expense. It's naive to pretend that any extra expense, whether it be a direct taxation or not, has no impact on demand in the marketplace.
- jljljl 12y ago1. It also, many times, does not mean more fraud, waste, and abuse. And if the government is providing a set of services, and their revenue is reduced, they will struggle to continue providing those services. 2. It is naive to assume that every additional tax has equal impact on the economy, or an equal distortionary effect on a consumer's supply and demand. A New York Hotel Tax of 15% may have less impact on the city's economy than raising the sales or income tax to cover the lost revenue.