A Republicans Idea of Good Taxation

 Starting this year, Tennessee will require drug dealers to pay state excise taxes on illegal substances they acquire and/or sell.  A 10-person tax agency has been created at a one-time start-up cost of $1.2 million to assess the taxes and collect them. The annual cost to enforce the drug tax will be $800,000, said Elizabeth Fitzgerald, spokeswoman for the state Revenue Department.  The law’s sponsor, Sen. Randy McNally, R-Oak Ridge, estimates $3.6 million will be collected in the first year, which will more than cover the cost of the program.

Just how does one go about collecting a tax on an illegal substance?  Tennessee plans on collecting in two ways (quoted from the Tennessean.com):

“• Drug dealers can go to any of the state revenue offices within 48 hours of coming into possession of unauthorized substances. They pay the tax and get a ''stamp'' to put on the drugs showing they have paid up. They would not be required to give their name, address, Social Security number or other identifying information. State tax collectors would be constrained by taxpayer privacy laws from reporting them to police. Still, state officials say voluntary payment is unlikely to happen often.

• The most probable way the tax will be collected is when police make drug busts. Law enforcement agencies are required to call tax officials within 48 hours detailing the drugs found.Tax collectors then assess the tax on the drug suspects, as well as additional fines for not paying the tax in the first place. If the suspects cannot make immediate payment, the state seizes and sells any assets, such as cars, homes and personal belongings, to pay off the liability.”

Of course, this law is being challenged already in the courts.  If you read the collection plan carefully, you’ll notice that the second option is the only really viable one, and that it targets “suspects”, not convicted criminals.  Basically, the state can demand payment prior to proving that the person is actually guilty of the crime, or convicting them of the crime.  This is blatantly unconstitutional and will probably be struck down in the courts, a process which will ultimately cost the taxpayers of Tennessee even more money.