When Is Tax Increase Not A Tax Increase?

The Economist – June 20 – June 26, 20 2015

Even in a place (Louisiana) enured to budget trickery, the strategy and was absurd… The state’s cigarette tax, the third lowest in the country, would be raised substantially, with the proceeds going to higher education. But rather than declare it as a tax increase, the state would create a phantom fee of about $1,600 applied to each of its 220,000 university students. The students would not actually pay the fee, because it would come with a matching tax credit. Tis credit would then be handed over to the universities, which would in turn receive the actual money generated by the cigarette tax increase.

When you call it “FEE” (never call it a “tax”)
The money flows in (and the voters relax.)

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