5 of History's Most Ludicrous Taxes

Commentary from Madeline Grant on FEE.org:

“Nothing is certain in life except death and taxes”, as Benjamin Franklin’s old maxim goes. That’s especially true here in Britain, where everything from tampons to televisions is taxed, and even upon death there is one last impost, Inheritance Tax, to pay.

Inheritance Tax (IHT) was one of 20 taxes that the Institute of Economic Affairs recommended abolishing in a report last year, which made the case for a radical simplification of Britain’s complex and often counterintuitive tax system.

IHT, as unpopular as it is ineffective, represents a form of “double taxation”, because the inheritance is derived from income that has already been taxed – during the bequeather’s lifetime. The policy is riddled with loopholes and opportunities for avoidance, including nonsensical exemptions on everything from expensive artworks to agricultural land.

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We also singled out Stamp Duty Land Tax (SDLT), another poorly considered levy with destructive side effects. It might raise revenue for the Exchequer, but it causes enormous distortions in the process, which is why Stuart Adam of the IFS termed Stamp Duty “a strong contender for the UK’s worst-designed tax”.

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The Wallpaper Tax

This tax was introduced in 1712, during the reign of Queen Anne, to capitalize on the growing popularity of wallpaper as an alternative to tapestry or paneling. In an attempt to target wealthier citizens, the levy was directed at “painted, printed or stained” wallpaper favoured by the middle and upper classes, rather than cheaper plain paper, which remained untaxed.

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The Window Tax

The infamous window tax, supposedly the origin of the term “daylight robbery”, was introduced by William III in 1696, and lasted for over 150 years. And much like Stamp Duty, Window Tax was structured in a perverse and illogical way.

Until last year, Stamp Duty featured what economists call “cliff-edges”, that is, a point at which the tax rate suddenly shoots up. For example the rate of stamp duty, until recently, would jump from 1 per cent to 3 per cent of the entire transaction price at the £250,000 cut-off point – thereby creating an increase in tax liability of £5,000 as the house price crossed this threshold. [read more]

Yea, I agree those are stupid taxes. The other taxes the author writes about are: The Hat Tax, and The Wig Tax, You just can’t make this up.