Abolishing Car Taxes

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It is to create alignment to be more efficient economy, but does not automatically entail the improvement of environmental protection. How they stand now, the Commission plans to replace the Tax Declaration Annual Circulation Taxes can partially reduce personal car use and reduce annual emissions of one car. However, they will not give any incentive at all to refrain from owning a car. In fact, the opposite is the case, because the abandonment of registration taxes will further stimulate the production and consumption of automobiles. This will be the most sensible in countries like Denmark that are able to limit the growth rate of motorization and maintenance of "greener" modal SPLIT higher enrollment rates.

It is noted that the Government has announced that with effect from 6 April 2002, based on the tax on cars by employers for employees' business and private use, will change the emissions based system. The pool car provided for business use only, and who have returned to a place at the end of the day is not liable for providing in-kind tax, and it will continue to be so. Carbon dioxide (CO2) will be used as a measure for calculating compensation in the nature of the car tax datuma.Porez discourages economic activity, such as work and ulaganja.Porez is cut, leading to increased economic activity. Liberals then assume that the previous tax rate will continue to accrue at a higher rate of activity - which, of course, only due to lower tax rates - thus depriving the government huge revenue it rightly belongs. it does not matter to them that economic activity is often spread by more than the tax rates are reduced, thereby increasing total revenues. Liberals always still believe that even more would be collected only if the tax rate is cut. In the case of car tax , liberals assume that the additional cars would be purchased in any case, without any change in taxes. and old cars by multiplying the tax rate times the number of cars registered, they are the mythical revenue that could pay for more teachers, police and roads.

Therefore, in this paper, we discuss the abolition of car tax rule in the context of California -. One of the major and highly populated city of the United States

History: In 1935, Motor Vehicle License Fee Act established the state car tax is 1.75 percent of the value of the car in exchange for personal property tax is then assessed on all personal imovine.Porezi collected pursuant to this Act were limited to state purposes, including highways. The personal property tax was later repealed, but the car stayed taxes. In 1948, the fee was raised to two percent. In 1957, the law is clarified to restrict the use of these funds for law enforcement, regulation and control traffic on the highway, and other public purposes.

In 1988, the Act was amended to allow the use of car taxes for any purpose, and in 1993, 25 percent of the funds earmarked for the realignment of health and social services programs. Thus, any connection between car and road tax is wiped out. What is even worse for taxpayers in 1991 in California, a radical restructuring of the car tax to provide additional tax funds to balance the budget within the $ 8.2 billion in increased taxes and fees that year. Prior to 1991, car owners are charged a ten year amortization schedule, based on the original purchase price automobila.1991 legislation made ​​three dramatic changes. First, the depreciation schedule was stretched to ten to eleven years. Second, the law provided for a permanent tax on fully depreciated vehicles amounting to 0.3 percent of the cost in perpetuity beginning in the 11th year. Third, the new law start to restart the amortization schedule, virtually assuring that very few cars ever to bottom raspored.Neto effect was $ 60 annual increase in VLF paid for an average car.

other historical information about the 1991 tax increase is also relevant to this raspravu.Ukupni tax increase that year was the largest by any state in the nation's history. According to the revenue estimates at that time, the entire package amounted to $ 8.2 billion in additional taxes and fees, or about $ 1,100 per obitelji.Povećanje tax, enacted in the midst of a recession, broke back into the California economy. Although some of these taxes were repealed or expired, many are still on the books. Thus, the California vehicle charges began as a substitute for personal property taxes. When the personal property tax was repealed, the tax is held under a new name. It was originally limited to civil purposes, mostly for highways and highway related services. Today is dedicated in its entirety for purposes unrelated to the highway. It now spends $ 3.3 billion to California families earning at the time they are paying $ 3.6 billion more than they paid for without raising taxes 1991st

Meanwhile, the laborious and outdated car tax has proven to be very unpopular in the country. In the 1997 Virginia gubernatorial campaign, Republican James Gilmore campaign is halted while the presented proposal to abolish the Virginia car tax. Gilmore won a dramatic victory for the governor and the Republicans swept most of the Virginia state Senate. He now set about to fulfill his promise signature campaign, backed by a large mandate from the voters of Virginia. Meanwhile, in Texas, Democrat Gary Mauro's campaign against Republican Gov. George Bush Jr., on a platform to abolish the state tax on motor vehicles. Bush opposes the plan. In Georgia, Republican Guy Millner has proposed that the government end the car tax to save taxpayers from $ 475 million. In South Carolina Gov. David Beasley proposed in his State of the State address last month phase out of the car tax in the period of six years.

Abolition Car Tax: AB 1776
The car is a traffic safety. Even if public transportation is adequate for most trips, people still want a car for the odd occasion or emergency. There will always be a place and time when public transportation is not radi.Vlada could make a contribution to the immediate abolition of car tax and increasing taxes on fuel to compensate loss of income. This would further benefit is far from absolutely pointless and tedious administration. The point is that public transport will never be able to mimic the flexibility of private transport, and now the car has so many advantages.

Virginia experience makes a strong case for California abolished its car tax. In this way, California can reduce the overall level of taxation on what would have been without the tax increases imposed during the 1990s, while for some $ 14 billion in additional general fund revenue for the past eight years. It would abolish the tax so long ago ceased to bear any resemblance to the original purpose and intent. This would remove a strong disincentive to an existing law that keeps drivers from the shedding of older, more polluting cars. This will provide a significant boost to economic activity by reducing the cost of new vehicles in California. This would reduce the costs of the California family, whose practical needs in the Golden State: automobil.Problem family that has built-in special interests that depend on poreza.4 billion savings for taxpayers is $ 4 billion the governor proposed a budget cut. In this case, users are local government, which is still recovering from a multi-billion dollar assault by the government in 1992 and 1993. In order to back-fill this amount, the reduction in the proposed state budget should be taken from non-education funds under the constitutional provisions adopted draft 98th "I-98" side of the budget and funds for the Department of Correction, the sacred cows of the legislative.

In California, the abolition of car tax, it would be desirable to policy and practical necessity:

 you want to keep local governments harmless for back-filling their losses with state funds,

 work within the revenue projections of the Finance Department
 The proposal does not affect the 98 funds for schools

 does not affect the administration has proposed funding for state prisons

 does not affect the administration proposed a budget reserve.

The next question is how the funds should be to preserve, protect and restore local government to replace the VLF tax will be lost. This is especially important question, since 47 of the draft 1986 Constitution intended VLF subventions to local governments, providing a relatively tamper-proof and expanding source of local revenue. Although VLF subsidies can be diverted from local government budgets in the future simply by using it to replace other sources of financing local government, a suitable replacement for the VLF is understandably an important objective of local government.

AB 1776 establishes a strong protection against government raids that phase in a dedicated portion of future sales tax revenues to replace the lost VLF subventions. For the protection of an anomaly that occurs between the high and low tax taxes the community, the replacement revenues are placed in a dedicated state sales and use tax account, which will replace the lost VLF grants on a dollar-for-dollar basis. When fully in stages, the rate of sales required to replace the lost tax revenue will be locked, a subsidy from the fund will naturally expand as the economy expands. Indeed, this reform is greatly increasing the flexibility of local governments to use these resources by eliminating the straightjacket effect of the 1991 realignment legislation. Furthermore, to provide additional protection for local government, tax provisions of AB 1776 will be placed in the "Local Government Independence Act," a constitutional amendment to be introduced in the Assembly later this month.

California's third largest pay a combination of car tax in the nation, and they pay $ 3.6 billion more in total taxes than they would without a net tax increase of 1990-ih.Najveći of the car tax charges for vehicles, which are called "car tax", makes an average of $ 185 per car per year. None of this money is used for highway or road related services. It goes instead to the local government general funds and local health and social services programs. The abolition of car tax to California California family unit for massive tax increases they have suffered 1991st In this period of economic growth, the elimination of taxes on vehicles can be done while protecting the local government for any loss of revenue, to preserve state funding for schools and prisons, and maintenance of the proposed budget reserves. This would require an overall reduction in the proposed 1998-1999 general fund budget of only 9/10ths of one percent, or no budget reductions at all if additional revenues can be realized in the change.

states the booming economy makes it possible to eliminate the tax without touching the state school budget or even the rate of growth in schools' funding jamstvo.Bill abolish taxes and protects local governments from any loss of income, it replaces every dollar lost through car tax with equal amount from the state share of existing tax revenue. to answer local concerns that the replacement fund may be reduced in coming years, a constitutional amendment was proposed to protect against intrusion future legislatures. in response, at 1997 Virginia voters just passed a big mandate for the elimination of car taxes in the state election James Gilmore, who has made this goal a signature theme of his kampanje.Podršku for the abolition of car tax from an impressive coalition of taxpayer groups suggests that a strong organizational structure exists for taxpayers to channel their outrage California offensive car tax.

Putting the actual costs of using the car before the commuter can change many minds and, incidentally, is much more democratic than road pricing, where the lump sum will be paid to the center grada.Dobra news is that California is enjoying a period of economic expansion . the combination of projected revenue growth and one year suspension of new social benefits, while meeting all the criteria above can accommodate five years on the stage of self-taxation. It is now established that even a significantly reduced rate of economic growth in California is currently experiencing will be more than enough to cover the phase out of the car tax, without prejudice to the proposed 98 funding guarantees.