Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Truly Bizarre Taxes: The Tax on Illegal Drugs > NetSparsh - Viral Content you Love & Share

Truly Bizarre Taxes: The Tax on Illegal Drugs

One can never underestimate the enthusiasm that politicians have for trying to hunt up tax revenues. The creativity of some politicians can lead to bizarre taxes and unfortunate results.

Taxes on Illegal Drugs

One argument for the legalization of various narcotics is that massive tax revenues would be created. Interestingly, a few states already are trying to collect such taxes!

More than 10 states have tried to tax people that possess illegal drugs. For example, Kansas levies a drug tax on dealers as soon as they take possession of the substance. To avoid prosecution for failure to pay the drug tax, individuals possessing the drugs are supposed to purchase "drug tax stamps" and attach the stamps to the drugs in question. The stamps are valid for 3 months.

In an apparent attempt to promote compliance, the Kansas Department of Revenue promises:

"A dealer is not required to give his/her name or address when purchasing stamps and the Department is prohibited from sharing any information relating to the purchase of drug tax stamps with law enforcement or anyone else."

The tax is levied on cocaine, marijuana, methamphetamines and other hard drugs. Interestingly, the state collected over $300,000 in such taxes by going after individuals that were charged with criminal activity. This is better known as the "Al Capone Theory", which is derived from the fact that authorities were able to put away the famous mobster on tax evasion charges. Alas, criminal prosecutors have not always welcomed the illegal drug tax.

Drug Tax Foils Prosecution of Drug Dealers in Texas

The 5th Amendment of the Constitution protects Americans from being punished twice for the same crime. This concept, known as "double jeopardy", caused prosecutors in 1989 to literally beg the state comptroller's office to stop accepting tax payments by drug dealers. The reason? A Texas Criminal Court of Appeal ruled that the state law assessing taxes on illegal drugs constituted a "punishment". As a result, requiring the payment of the tax constituted double jeopardy if the taxpayer had already been charged criminally.

In an attempt to get their clients off on drug charges, criminal attorneys began advising them to rush to pay their drug?related taxes. The theory was that once the taxes were paid, the drug dealer could not be prosecuted because doing so would constitute a second punishment! The appellate court agreed with the theory and the state comptroller immediately stopped collecting the Texas drug tax.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

New York Times

Republicans, Closing In on Final Tax Bill, Aim for a Vote Next Week
New York Times
WASHINGTON — Republican lawmakers, scrambling to reach agreement on a final tax bill that they hope to pass next week, are coalescing around a plan that would slightly raise the proposed corporate tax rate, lower the top rate on the richest Americans ...
Tax package would lower top tax rate for wealthy AmericansThe Denver Post
Republicans propose to delay, pause Obamacare taxesReuters
GOP negotiators move closer to reducing top tax rate for high-income households but face blowbackWashington Post
Politico -ConsumerReports.org -Treasury Department
all 799 news articles »

New York Times

How the Tax Bill Hurts the Poorest Schools
New York Times
Currently, taxpayers can deduct their state and local taxes, and that deduction makes them more likely to support higher spending on programs funded by those taxes, including public schools. With its bills, Congress would significantly cut the ...

and more »

CNN

Trump winds up for final pitch to Americans on tax overhaul
CNN
Joined by about 120 people -- families and military personnel who have been invited -- the President will speak Wednesday afternoon from the Grand Foyer of the White House. Some young people will be among those invited, and the President will dedicate ...

and more »

Bloomberg

Facebook to Start Paying Taxes Locally, Instead of Through Ireland
Bloomberg
The Commission also has ordered Apple Inc. to pay about 13 billion euros (about $15 billion) in back taxes to Ireland, after it said the country granted unfair deals that reduced the tech giant's corporate tax bill. Apple and Ireland are appealing the ...
Facebook to overhaul Irish tax schemeBBC News
Facebook to stop routing ad revenue via Ireland amid pressure over taxesThe Guardian
Facebook to Give Countries a Chance to Tax Its Profits From Local AdsWall Street Journal
Irish Times
all 45 news articles »

New York Times

California Today: A Tax Challenge for Sacramento - The New York ...
New York Times
Tuesday: Proposition 13, Mayor Ed Lee of San Francisco dies, Mulholland Drive and a box of chocolates.
As California burns, Congress plans to slash tax write-offs for fires and other disastersLos Angeles Times

all 16 news articles »

6 States Raising Taxes in 2018
Motley Fool
Let's face it, no one enjoys preparing their taxes or complying with federal and state tax code each and every year. It's not hard to see why, either. The federal tax code was nearing 10.1 million words in length as of 2015, and it's gained an average ...

and more »

Business Insider

Paying taxes on bitcoin isn't nearly as hard as it sounds
Business Insider
Bitcoin's incredible rise in value from just shy of $1,000 per bitcoin on January 1 to more than $19,000 on December 8 has likely caused many bitcoin owners to sell all or part of their investment. But as tax season approaches, it may not be ...

and more »

New York Times

Tax Plan's Biggest Cuts Could Be in Living Standards
New York Times
In the summer of 2006, as President George W. Bush was pressing to make permanent the tax cuts he had pushed through Congress in 2001 and 2003, the Treasury Department published a so-called dynamic analysis that, the administration hoped, would prove ...

and more »

Protection sought to ensure gross receipts taxes from LANL
Santa Fe New Mexican
Santa Fe County commissioners want the state Legislature to protect Northern New Mexico communities from the possibility that a change in management at Los Alamos National Laboratory could cost local governments millions in tax revenue. Commissioners ...

and more »

Realty Income: Oh No Not Higher Taxes
Seeking Alpha
But if you are holding the stock in a taxable account, there could be some tax implications you weren't expecting. Over the years, Realty Income has paid out dividends that have been classified into three categories: Ordinary income, nontaxable ...

and more »
Google News

Some Folks Pay A Lot Less Tax Than Others On Very Same Income?Did You Pay Too Much Tax In 2004?

Someone once remarked, "Next to being shot at and missed,... Read More

Section 179 ? Tax Relief From Depreciation Rules

"Depreciation." For business owners, this word is the one most... Read More

Know A Tax Cheat? Get Paid To Tell The IRS

According to the IRS, taxpayers underpay their taxes by some... Read More

Uncle Sam is Ready...Are You? Organizing Tips for Tax Time

Anyone who is closely related to an accountant knows that... Read More

Tax Deduction for Alimony Payments? - Yes!

Over 50% of marriages end in divorce in the United... Read More

Back To School ? Educators Deduct School Expenses

As teachers and students head back to school following a... Read More

Rental Property Tax Deductions

Own residential rental properties? This article discusses how income from... Read More

Requirements To Produce Tax Information (Whats Up With That?)

"What we've got here is a failure to communicate." ... Read More

How To Get An Extension To File Your Business Tax Returns

Yes, the tax season is upon with the first filing... Read More

Tax Trap #5 -- Ignoring The IRS (and the 5 best ways to contact them!)

We all love to criticize the IRS, don't we? And... Read More

Tax Trap #2 -- Double Taxation: Isnt Once Enough?

Have you been thinking about incorporating your small business or... Read More

The Annual Gift Tax Exclusion: Getting The Edge

Whether helping the kids with a down payment on their... Read More

How Likely Are You To Be Audited?

Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More

Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes

With the massive losses caused by Katrina, the economy of... Read More

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

Tax Trap #4 -- The Quagmire of Depreciation

If you are a Small Business Owner or Self-Employed Person,... Read More

Send Your Kids To Summer Camp and Write It Off

If you paid someone to care for a child so... Read More

How To Set Up A Tax-Saving Bookkeeping System

One of the most important, but least understood or appreciated... Read More

Surprising Truths About Tax Preparers

Choosing the right tax preparer for your business is a... Read More

How to Check the Status of Your Tax Refund Online

So, you were pleasantly surprised to learn that you are... Read More

E-commerce Taxation

The means and types of businesses have transformed with advent... Read More

Tax Jokes and Quotes

Do you realize that some tax forms ask you to... Read More

IRS Statute of Limitations: Do Taxes Ever Expire?

Many Americans believe that an IRS debt is a debt... Read More

Gambling Income and Expenses - Tax Requirements

Hit a big one? With more and more gambling establishments,... Read More

Need an Offshore Sales Office in a Tax Free Environment?

The 100 year old investment-banking firm of... Read More