One thing that really bothers me is that government agencies are tax exempt. 🏛️

I don’t like the idea that government doesn’t pay its fair share of taxes – if there were more taxes on government then there would be a greater incentive to economize and would help level the playing field with the private sector. I think it makes sense to assess on government all of the same taxes that any private sector entity pays.

Taxes on government could also raise an enormous amount of revenue – in most communities government is one of the most wealthy institutions often ranking in the billions in income and spending each year. Governments have massive payrolls, land holdings, buildings, bridges and property. It would greatly increase fairness by taxing these most successful of entries.

Taxing government is just like taxing power plants or railroads. While it’s true that power plants and railroads benefit all, and we all pay into them, we tax them because they are source of wealth and because it’s a way to encourage economy and efficient use of resources.

Government agencies do pay payroll taxes nowadays but not sales tax, property taxes, franchise or corporate income taxes. I think they should like any other corporation. If they have to cut services it sell property to cover their tax bills then so be it. At the same time, many agencies would benefit by increased revenue by other agencies paying them tax. I think government paying taxes would be a more effective and efficient government.