Here is the rub on taxes and fees. IF taxes and fees collected by ANY
government authority went directly to what it is they are being collected for, I would have zero problem with it. The reality is that laws are passed to raise taxes, and
regulations created to collect fees. Taxes go into a general fund and State Houses determine how the
money is spent each year as in many cases
funding puts an automatic sunset on a law. Even if the law states it must be collected, the Federal/State House can determine how it is spent.
Fees are collected by a
government body that normally are not attached to a law. They are a means of offsetting costs, and usually
sold as temporary in nature. It is very rare that temporary tax increases or fees are ever temporary. Even in the private sector - UPS still has a huge
fuel surcharge attached to
shipping a package even though
diesel and aviation
fuel is below the threshold of where they started the fee. It is called the stupid tax. We see it costs $10 to ship with UPS or $11 to ship USPS, we pick UPS, then at the time of payment $2.10 is added as a fuel surcharge. Making UPS $12.10 and USPS still $11, but we picked UPS because we thought it was cheaper. Airline tickets are another great example of Government Mentality in the private sector. We don't even have signs at gas pumps saying gasoline has a third decimal place from a tax from the 70's, but if the sign says $2.80 a gallon, we think $2.80 a gallon, not the real number of $2.809 or really $2.81.
We now pay a few bucks each year to document a vessel with the CG. That is because their systems could no longer handle and is outdated. So, a brilliant article explaining how fees could be used to not update the systems, but reduce the total number of documented vessels in the US as it may not be as attractive as it once was to document a pleasure vessel. Raise fees into general fund, not update as quickly the infrastructure, but alleviate some of the burden by documenting less.
So, one could surmise that the fees and taxes are raised and earmarked for dredging projects and an initial bond will be taken out to pay for the first project(s). Over time, the bond will be paid off from the general fund and new projects not started because the money collected is not going into a fund used to pay for new projects, but the general fund. Even though the taxes and fees are still being collected, the problem is cyclical.
Then a new set of politicians will see a problem and have to come up with a solution, usually requiring a new set of fees and taxes and a new bond to fund the
project and/or raising the existing taxes and fees.
So, if every tax and fee went into an account to only be used for what it was earmarked for, we would be in a different position as some accounts would have a surplus and others a shortfall. Which, in turn, would require them to earmark and use our money a little more carefully.
The road to hell is paved in good intentions.
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