In Texas we've got a big budget deficit. The Rats are out of power, but their suggestions are to use the entire rainy day fund (10 bil) this year, and increase taxes on cigarettes by a dollar a pack, and add taxes on beer, and "sugary soft drinks." Please note the focus group tested phrase "sugary soft drinks," which is designed to remove all sympathy from the organizations that make them. One of the major soft drink companies has closed 38 bottling plants in Texas. All they'd do by increasing taxes on them is close down more bottling plants. They also want to increase taxes on businesses, remove early tax payment discounts, and charge sales taxes on service industries that didn't previously charge sales tax. You're right. They STILL don't get it. Unemployment in real terms is around 20%, and underemployment is a significant force. People don't have any money. Those of us who are still solvent are getting our taxes upped (would you believe that according to the county my property increased in value, despite the fact that property values have fallen about 20% in my area?) I've already switched from major soft drink brands to store brands, and if the prices go up, I can go off them completely.
On the cigarettes, beer, and "sugary soft drinks," they're not even doing their song and dance about health anymore. They're finally honestly saying, "we need the money to feed the beast."
One only has to look at European and other countries to realize that it is entirely possible to be a bankrupt government and yet still tax everything and everyone far beyond what is sane or rational. Approx. 6 (six) of the 10 (ten) dollars a gallon they pay for gasoline is tax.
There is no way out of this mess that doesn’t include a lot of pain. We knew this 30 or 40 years ago. When it goes, it’s going to be quick as lightning.