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Politics : Formerly About Advanced Micro Devices

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To: combjelly who wrote (310206)11/10/2006 3:51:22 PM
From: TimF  Read Replies (3) of 1574005
 
Very simple.

Current government funding of roads = X
New tax for roads bring in revenue of Y.
Government removes X (or at least part of X) from road funding an adds Y.
X is spent on other programs.
Net effect, a tax for roads only increases non-road spending.

Saying "100% of the revenue from this tax will go to roads" (or education or whatever) isn't very meaningful.

Well it might mean something. If the tax income is noticeably larger than the current spending for the activity the tax is dedicated to, then instituting the new tax would have the effect of increasing spending in that area, but often not by the entire amount of the new tax. Going back the hypothetical above. Imagine Y is greater than X. That doesn't mean that government funding of roads becomes X+Y. Only that it is at least Y.
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