A Tax By Any Other Name

But the states – and local communities – can't run deficits. Whether dealing with a massive drop in tax revenues as a result of a recession, or gaps they created by pandering to voters with endless tax cuts, they have three ways to go. They can: a) cut services, which is politically unpopular and also can lead to situations such as in Texas, most of which is on fire after it slashed firefighting budgets; b) make up the gap with federal funds, as so many conservative governors who rail about federal spending are happy to do; or c) hike the fees their citizens pay for government services – fees for everything from motor vehicle registration to hunting licenses and user fees for recreational areas.

This last option has proven appeal with conservative politicians because they can say, with only technical accuracy, that they didn't raise your taxes. Across the country, state and local governments are squeezing ordinary people for every penny they can lay their hands on, and the burden these fee increases can put on ordinary families is often significant. Make no mistake: these fees are completely regressive -- it costs a billionaire the same amount to renew his or her driver's license as it does a pauper.
~ from How 'Small Government' Conservatives Raise Your Taxes Through Stealthy Back-Door Fees by Joshua Holland ~

While Holland is right about the state and local government angle, it's just as true for the federal government as well. Have you ever noticed that the advertised monthly fees for phone/internet and/or cable TV services is not what you actually end up paying?

We all see the glitzy ads all over the place. Sign-up for our service and it will cost you only $29.99 for the first 12 months. When you receive the bill, that $29.99 turns out to be $38, $40 or $45. What gives here?

If you eyeball your bill closely, you will quickly notice a wide assortment of, sometimes, unintelligible fees from various governmental entities tacked on. Every now and then, new fees are added. We may get to the point one day in which the fees are more costly than the service itself!!

Here is another example of the ubiquitousness of fees. My wife went to the US Postal Service (USPS) website to try to find some advice on sending a cupcake through the mail -- I have no earthly idea WHY the answer to such a question was needed or desired. After poking around for a while, she found a page in which questions could be posed to USPS personnel.

Asking a question itself was free, but it would cost $15 for the answer!!