The tax man cometh...to wherever you plan on visiting this summer
Filed under: Travel, Recession
Obviously, increasing taxation on leisure spending is a stupid idea when leisure spending is down. The goal is to stimulate more travel, not to discourage it by making it more expensive. But that's the way government works: The people who balance the books are often the ones controlling the legislation, and common sense has to work its way into the system from the outside.Local governments are hurting for cash. Orlando's tourist tax revenue is down 18%, which is worse even than after 9/11, and it's not expected to recover for years. But the golden goose isn't the first place other cities should look for some extra meat.
In Alaska, a new $50-per-head cruise tax is being blamed for a drop of 120,000 visitors to the state. Ireland instituted a €10 ($13.97) tourist tax on April 1, as arrivals collapsed. A paper there calculated that the amount lost by people who are scared away, or €300 million ($400 million), will dwarf the amount collected; €125 million ($175 million).
Places around the country are jumping on the tax-the-tourist bandwagon. Myrtle Beach increased sales tax by 1% to fund tourism marketing, something that thrills rival attractions in North Myrtle Beach, which sets its own taxes at a lower rate. South Dakota's are up by 50% on July 1, and Bozeman, MT, wants to bump up its nightly charge by $1. Most of the increased taxes are for small-market destinations, or places where people are more likely to drive for the night rather than visit on a flying vacation. Ultimately, they wind up penalizing people with lower budgets who can't afford to jet across the country or the world for their time off.
It's a foolish path. But then again, tourists don't vote, so it's easier to punish outsiders than to take the heat for true fiscal prudence in local services.
Taxes in the News
This video image provided by Westwood One/Metro Networks shows a Continental Airlines flight 61 from Belgium taxing at Newark Liberty International Airport in Newark, N.J., Thursday, June 18, 2009. The pilot of the plane died over the Atlantic Ocean on Thursday, but the jet landed safely with two co-pilots at the controls. (AP Photo/Westwood One/Metro Networks)
AP
FILE - In this Sep. 16, 2008 file photo, Rep. Gene Green, D-Texas, left, accompanied by Rep. Chet Edwards, D--Texas, Sen. Kay Bailey Hutchison, R-Texas, right, gestures during a news conference on Capitol Hill in Washington. The oil and gas industry has accelerated spending for lobbyists in 2009, more than any other major sector in the past few years, and that effort is scoring at least some small victories as companies try to fight prospects for new taxes and climate and drilling rules. (AP Photo/Susan Walsh, File)
AP
Juana Reyna inspects freshly made lipstick at Mary Kay's Dallas factory, whose output includes exports for Mexico, May 26, 2009. The company says it's paying $450,000 a month in tariffs and taxes on products sent to its fourth-largest market. (Jim Mahoney/ Dallas Morning News/MCT)
MCT
Gov. Arnold Schwarzenegger said that he would veto any budget bill that includes new taxes beyond what he has already proposed, while talking to reporters about the state budget outside his Capitol office in Sacramento, Calif., Wednesday, June 17, 2009.(AP Photo/Rich Pedroncelli)
AP
Gov. Arnold Schwarzenegger said that he would veto any budget bill that includes new taxes beyond what he has already proposed, while talking to reporters about the state budget outside his Capitol office in Sacramento, Calif., Wednesday, June 17, 2009.(AP Photo/Rich Pedroncelli)
AP
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Business Wire
Texas Gov. Rick Perry talks about tax relief before signing a bill giving a tax break to 40,000 small businesses Tuesday, June 16, 2009 in Houston. The measure extends a tax exemption to Texas business owners with up to $1 million in annual revenue. (AP Photo/Pat Sullivan)
AP
CHICAGO - JUNE 16: Children protest against proposed budgets cut that would slash funding to many social services organizations June 16, 2009 in Chicago, Illinois. Illinois Gov. Pat Quinn has threatened massive cuts in funding to these agencies if legislative leaders fail to pass a hefty income-tax increase. (Photo by Scott Olson/Getty Images)
Getty Images
CHICAGO - JUNE 16: A demonstrator protests against proposed budgets cut that would slash funding to many social services organizations June 16, 2009 in Chicago, Illinois. Illinois Gov. Pat Quinn has threatened massive cuts in funding to these agencies if legislative leaders fail to pass a hefty income-tax increase. (Photo by Scott Olson/Getty Images)
Getty Images
CHICAGO - JUNE 16: Desiree Edwards demonstrates against proposed budgets cut that would slash funding to many social services organizations June 16, 2009 in Chicago, Illinois. Illinois Gov. Pat Quinn has threatened massive cuts in funding to these agencies if legislative leaders fail to pass a hefty income-tax increase. (Photo by Scott Olson/Getty Images)
Getty Images
Reader Comments (Page 1 of 2)
6-16-2009 @ 12:10PM
Gary E. Sattler said...
Jason, you wrote:
"...But then again, tourists don't vote..."
In truth, tourists DO vote, with their wallets.
The old saying goes: There is nothing certain in life but death and taxes.
I amend that to read: There is nothing certain in life but death BY taxes.
The liberals are killing your country... say bye bye.
;)
Reply
6-16-2009 @ 7:28PM
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6-21-2009 @ 2:07PM
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6-21-2009 @ 2:30PM
J.B. said...
Amen!!!
6-21-2009 @ 2:34PM
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7-29-2009 @ 8:25PM
JJ said...
1. The liberals are not killing our country--they are trying to rescue it from the ruin of the Bush regime. You are the pot calling the kettle black. We would be in much better shape if Bush had never been in office. Besides letting the fox in the henhouse of Wall Street--think of all money and lives, lost in Iraq! A conservative trying to talk fiscal responsibility is like an alcoholic talking about sobriety. The spending habits of our previous republican administration contributed to the problems today...Bush inherited a SURPLUS! Name something good Obama inherited.
2. Most of the tourists to Hawaii are American--and YES they vote.
6-21-2009 @ 7:39PM
Tom Miller said...
What's killing the country is whiners like you who don't want to pay for government services and infrastructure. That's why the chicken-s**t legislators won't pass honest tax increases and instead impose nickle and dime fees at every opportunity. We'd be living in caves if you freeloaders had your way.
6-16-2009 @ 5:10PM
Sunnye Taylor said...
I live in Panama City, most of our business comes from tourists. I know about hiking the bed tax, but you have to understand the stupidity of the ruling parties. For years, Panama City Beach has been known as the Spring Break destination, parents sent the teens and college students here to party, unsupervised. And what happened we had wild parties, public drunkeness, drugs,nudity and of course, the ones who thought they could jump off the balconies and land on the floor under them.
Now Panama City Beach want to change their image, they have finally learned a sad lesson, a little too late. Now we spend thousands of dollars on advertising to attract young married couples with no children. Sounds like we need to be attracting families.
Reply
6-21-2009 @ 6:08PM
Lou Russo said...
I live in Palm Springs CA. It used to be a spring break mecca. Town hopped, merchants and staff making big $$.Then the uptight powers to be decided that they wanted to "clean it up and attract a different element" just like your town does.
Well, the nasty Spring breakers stopped coming, and now half the stores on the main street are boarded up. I guess our local politicians showed them, huh?
6-21-2009 @ 2:12PM
John said...
You say the liberals are ruining this country? What you should say is that the conservatives have already ruined this country. From Reagan through GWB, they have systematically destroyed the economy, stepped all over the constitution, ruined our reputation with the rest of the civilized world, enacted useless and unattainable education legislation and allowed their fat-cat bankers and brokers to transfer built-up wealth from the middle class into the hands of the robberbarons. Get your facts straight before you make stupid comments like that.
Reply
6-21-2009 @ 2:22PM
John said...
John, Socialism is fine until you run out of people to tax. Obama says work pays, but welfare pays more. Thats why I quit working. I couldn't afford to turn over 50% of my earnings to the government. Now I do what I want when I want and pay far less hidden taxes than when I was working. Obama and his buddies want you to think they are taxing the rich, when in fact the average joe pays most of the taxes. Remember, people pay taxes, not the corporations. Ignorance is bliss.
6-21-2009 @ 3:20PM
bob said...
You fool Jimmy Careter the 21% interest guy ruined our economy like ODAMA is doing now
6-21-2009 @ 2:32PM
Jamie said...
I rented a car in Texas on vacation and the tax was 30%. You can't blame that on the Liberals, Texas is a red as it gets.
Reply
6-21-2009 @ 3:15PM
tknsmom said...
Not really....Oklahoma was the only total red state!!
6-21-2009 @ 3:27PM
g said...
well, if the politician's aren't killing the Goose that lays the golden Eggs (average taxpayers) they are at least carving out the ovaries so there won't be any more eggs!
Reply
6-21-2009 @ 3:37PM
richard said...
TAX THE LITTLE GUY.BLEED EM DRY.SO PEOPLE WON'T GO AND NOBODY PAYS ANY TAXES AT ALL.THEY SCREW US -WE SCREW THEM BACK.
Reply
6-21-2009 @ 3:54PM
chuck harris said...
First of all, we need to stop blaming the liberals, stop blaming the conservatives, stop blaming each other, and stick together for a change . If anyone this thinks that these parties really want the best for the American people you have been asleep, and You better wake up NOW! We fIrst need to realize, the democrats are in the bedroom, and the republicans are in the bath, or visa versa so the saying goes. Both of these parties need to go, there both crooks, and have robbed the American people of there country, and there $$ and will continue to do so. They represent the worst of greed ever since the turn of the century. This may sound a little radical, but we, the American people should be out in the streets burning stuff, and marching to Washington, like now! We can get out there, turn cars over, set fires and pitch a damn fit if our favorite team wins, hell, why not do that to send a message we are tired of the way our goverment is stealing from us, how ignorant we have become. If we had done this same thing when gas went to $4.50 gallon last year, we would have sent a message . That was a little test to see if we would le them get away with it. If you believe the hurricane B.S. is why gas went up, you need to do your homework. Also, political positions that are voted for should have a two year term limit. Great goodness folks, We have to wake up, and stick together , and send a message for real change!!!
Reply
6-21-2009 @ 7:22PM
AF said...
I totally agree with you, I say this at work all the time. We are millions of people in this country against what a few hundred in congress so who do you think would win if we decide to stop paying taxes and march to Washington?
6-21-2009 @ 3:52PM
Steven Stroup said...
Taxes are always going to be necessary. It's what they spend them on that gets most people upset. Roads, national defense, public safety, like law enforcement, and education are given. They spend money on education and find that most of it goes for for facilities that are not needed. I went around town and counted 10 closed school buildings that I was informed were still owned by the school district. Sell them and recover some of the money. Look at the teachers, I all for paying for good teachers but some lack teaching skills that encourage students to learn. Evolution, religion, politics,sexual orientation, and morality should not be in a public school system. Then their are what they call ear marks, going to fund almost any thing congress wants. A lot of money and to few if any people benefit from it.
Reply
6-21-2009 @ 4:06PM
kath said...
What I don't understand is why so-called conservatives don't mind getting financially raked over the coals by big corporations that are charging WAY too much for their products and services and treat average citizens like cows to milk, but God forbid the government should get a tax dollar to protect our interests.
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