Thursday, April 2, 2009

More money = less money

Yesterday a rise in the ciggarette tax of 62 cents a pack went into effect. The idea behind it is a bit confusing. Governments are counting on the extra income to fund certain projects while the anti-smoking groups are hoping that it will persuade more people to quit the habit.

If more people quit it will certainly help the future health care costs of the nation's population. I say "population" because taxpayers tend to foot the bill on a lot of medical costs due to lack of insurance and such.

However, the lack of tax income and less public money to cover uninsured health costs, will only dampen the coffers of the projects/agencies the funds were intended for. On the other hand, I believe some of the money was intended for anti-smoking campaigns and with less smokers and less income the need will not be as strong to campaign.

It is basically the way the government thinks, "Raise prices and the extra money will come in handy." Wrong thinking.
A few years ago the state of Texas changed the way it charged for state park entries, etc. Before the change, it was $5.00 per vehicle to enter the park. Now they charge per person. One could buy a yearly park pass for $50.00 that is good for free entry to any state park for the year. The card was a credit card type and they changed it to a vehicle sticker. I think since they have reverted and went back to the card type, but not the "per person" charge.

At one park you were able to throw corn out off the road and around your camp to attract, watch, and photograph the wild animals. They were many and a great attraction. Never heard anyone getting hurt and it made the area a very family friendly park.

Then they eliminated the feeding of animals saying it was bad for them. The attendance has shrunk and the maintenance at the park isn't what it used to be.

So again, governments continue to assume that raising the price and fixing something that was working and the people enjoyed would bring more money for them and make the situation better. I don't think they will ever learn.