Hiding Taxes

I found a new tax in Washington DC. When I bought my lunch the person running the cash register asked me if I wanted a bag. It seemed like a silly question to me as I had a sandwich, a bag of chips, and a drink and it was to go, so I said yes. As I paid my bill, I saw a posted sign that notified me that bags now cost 5 cents due to a new District of Columbia law that became effective January 1.

I have now done some research and found that DC now requires all businesses that sell food or alcohol to charge five cents for a plastic bag. Not only does it require payment, but the bag must be made from #2 or #4 polyethylene and the bags must be printed with a phrase that encourages recycling (such as “Please recycle this bag.”) Paper bags must contain a minimum of 40 percent post-consumer recycled content and have the printed message also.

The business gets to keep 1 cent unless they offer a rebate for customers providing their own bag and then they get to keep 2 cents.

The 3 to 4 cents left of this new tax will go to the new Anacostia River Clean Up and Protection Fund which will be administered by the District Department of the Environment (DDOE). They have announced that they plan to use it to clean and protect the Anacostia and other local waterways, conduct public education campaigns about the impact of trash on the District’s environmental health, and continue to provide reusable carryout bags to District residents.

Of course as with most government mandated programs, there are some bags that will be banned and other bags from certain businesses that are exempt from this tax.

The real question is not how this impacts the District of Columbia, but why is this a standard way of raising revenue for many cities, counties, and states? Hiding taxes for causes in fees that people don't perceive of as taxes doesn't promote support. The Grange believes in good stewardship of our environment. We would support many efforts to clean up rivers, reduce trash and litter, or even to educate people about their options. However, government often forgets that there are multiple ways to get the message out and to create effective solutions.

Especially in tough economic times, just charging more for taxes and letting a government agency address the topic doesn't seem prudent. Did the city really evaluate their priorities and find nothing of less importance to discontinue? Did they really find that this issue was of such critical importance that a new tax needed to be created?

I know it is only a nickel. If you buy one bag a week it is only $2.60 of which the government will get about $2.00 of. The question I have for those who ask, "why complain about a nickel?" How many nickels, dimes, quarters, and dollars are already being used for worthwhile causes with taxes that are hidden? When I pay my income tax I know how much it is. When I pay my property tax bill, I know who gets every part of it. When I buy an item and there is a sales tax, it is there for me to see. The problem is that government officials realize that people don't want to pay more taxes so they are hiding them in plain sight as user fees, bag fees, or have them included within the price of something we purchase.

This D.C. five-cent bag fee will have no impact on most Grange members. The question for each member is how much money do you spend each year without realizing it is a tax from your government and which is often dedicated for some specific purpose? Do you feel that you are paying your fair share? Is your money being spent wisely and for important services? Are you going to bring even one issue to your Grange this year?