Wednesday, March 23, 2011

"Please don't squeeze the Taxpayer"---A toilet paper tax? Insert your own punchline...

I generally accept the economic principle that if you want people to use less of something you put a tax on it, i.e. alcohol, cigarettes, etc. But is it a good idea to have people use LESS toilet paper?

Suttle unrolls toilet paper tax

""Mayor Jim Suttle went to Washington Tuesday flush with ideas for how federal officials could help cities like Omaha pay for multibillion-dollar sewer projects.


Among the items on his brainstorming list: a proposal for a 10-cent federal tax on every roll of toilet paper you buy.

Based on the four-pack price for Charmin double rolls Tuesday at a midtown Hy-Vee, such a tax would add more than 10 percent to the per-roll price, pushing it over a buck.

The idea came from a failed 2009 House measure by an Oregon congressman to help cities and the environment.""
Perhaps it is actually a good idea.  Can you think of a product whose demand is more Inelastic (the change in quantity demanded will not be significant relative to the change in price)?  If you gotta go, you gotta have it!
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12 comments:

  1. joey crawfordMarch 23, 2011 at 9:01 PM

    This actually reminds me of one of the musicals Central had a few years, Urine Town. In the musical people had to 'pay to pee", a lot like what this tax is doing. So, hopefully the government doesn't come to that when trying to pay off our debt to China...

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  2. Korina AdamsMarch 23, 2011 at 9:19 PM

    If the government wants to raise revenue than this is a perfect way to do it because we will always need toilet paper. Taxing the toilet paper would be very similar to the musical in which they had to pay to go to the bathroom and everybody went on strike against it, but although it would make a lot of people mad i think it is a great way to help pay off the debt since it is a definite need.

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  3. Rebekah GaisbauerMarch 23, 2011 at 10:58 PM

    I guess this would be one way to help raise revenue because everyone does go to the bathroom, but is it necessarily right. Usually if the government puts a tax on a good or raises one, it usually means they want you to buy less of it or it is in short supply. However I haven't heard of any toilet paper companies running out of supplies. But when does the government do whats always right anyways?

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  4. AndrewMarch 23, 2011 at 11:06 PM

    This idea sucks. Don't we pay enough in taxes already? Plus it might actually drive down revenues in border areas because people would cross state lines to purchase tax free toilet paper, and make their other purchases in another state.

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  5. Brandon L.March 24, 2011 at 4:48 AM

    Well... makes sense since it is inelastic... That is unless we want to go back to using leaves and our bare hands :P.

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  6. Mark JohnsonMarch 24, 2011 at 3:32 PM

    Definitely gotta submit a punchline.

    "A tax on toilet paper? That sounds really CRAPPY!"

    haha, aha, ha... h...

    Though I'll admit, it makes sense. What better way to get money for sewers than to tax the people who will be using it? Toilet paper users!

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  7. Daria ZhukovaMarch 24, 2011 at 5:27 PM

    I think this is good because it will definitely be profitable. I mean if you look at the other products that have taxes imposed on them, the tax idea doesn't work to its potential and maximum. But, on this... there really nothing to replace the toilet paper... Its gonna work out well ... !

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  8. Kim NguyenMarch 24, 2011 at 5:35 PM

    I agree with half of Daria's opinion that this new tax on toilet paper would be profitable since everyone HERE (United States) needs toilet paper and would only use toilet paper. But I can guarantee that this would not work in poor countries, because I know that there are other substitutes.

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  9. Daria ZhukovaMarch 24, 2011 at 5:37 PM

    Whatever Kim! That's what I meant!
    I feel like people in the US are spoiled...

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  10. AnonymousMarch 25, 2011 at 5:05 AM

    I feel that the tax is a "not so bad idea' granted... most people will CRY for even ten cents a roll, but it's not like they are spending it anywiser. If "peeps" become unhappy with this, then they can always go to the last resort... LEAVES.
    - Kevyn Medrano

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  11. Anna ParsonsMarch 25, 2011 at 7:46 AM

    I think it almost takes advantage of people.. Everybody has to have toilet paper. They should increase the tax on drugs or something else relatively inelastic that people choose to do.

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  12. Young Finance GuyMarch 28, 2011 at 5:28 AM

    Interesting...

    But here is someting better...

    The toilet paper market is fixed... Yes thats right I said the toilet paper industry practices price fixing schemes.

    The best clue I can give you is at Wal-Mart next time u go check out the variable unit costs displayed. Compare the toilet paper figures to other products.. you will notice that they dont mak a lot of sense.

    Hey they did it with corn!!

    ReplyDelete

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