Of course governments don't advertise this. They prefer the illusion that rich developers pay the levy. The reality is that housing affordability is undermined and community infrastructure costs are financed by a few.
Tobacco taxes are an example where politicians go closer to telling the truth. Here, they do argue increased tobacco excises won't be paid by the tobacco companies but will be shifted to smokers.
This is correct. In this case, however, politicians pretend the tax increase is to cut smoking rather than to raise tax revenue. Chances are tobacco tax increases will cut smoking a little bit but raise tax revenue a lot. Naturally, governments pocket the proceeds if people keep smoking.
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More honesty would make politicians' jobs easier. Honesty acknowledges the inherent common sense of the electorate.
It may even increase respect for what politicians are on about.
It couldn't make things worse.
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