Tales of the unexpected (results of taxation)

 

[clay tax collector figure*]

What do Irish traditional houses, California avocados and Hungarian sausages have in common? They are all the unintended results of government tax policy. While those tax laws are long off the books, their impact is still visible.

[Irish traditional stone cabin]

A traveler in the countryside of Ireland immediately notices that the traditional cottages have tall doors and very few windows. While such a layout may be logical in terms of insulation, i.e., keeping in the heat during the cold winter, the actual reason is far more fiscal, specifically to avoid the heavy English tax on houses with more than six windows. The Irish referred to this levee as the “typhus tax” as the lack of air circulation created ideal conditions for the disease. This strange result demonstrates that what is convenient for the tax collector is not always beneficial for the taxpayer even beyond the financial element.

[avocados]

California is a major player in the world food production market, producing just about everything, including rice. Avocados are a more recent significant addition, dating from around 1970. The state now provides the vast majority of US domestic production, almost 140 thousand tons. While the tree does produce commercial amounts quickly and the product has a high commercial value, the actual trigger for the massive investment in this fruit was US income tax policy. Apparently, there was a closing of a loophole in the federal tax code for citrus and almond orchards, which had allowed the rich to avoid paying taxes for many years. Instead, in compensation, for seven years, from 1970 to 1976, the congress made it very worthwhile to invest in avocados. The government has long since eliminated this tax break but avocados have gone from being exotic to common. They are an example of a fruit of the IRS’s labor.

[Hungarian sausage with cabbage]

Finally, Hungary has hundreds of types of sausage, ranging in size, taste and spiciness. However, most of them are made from pork, not beef. Pork is often the preferred meat in counties where the land is insufficient or does not support cattle. In Hungary, the cause of this preference is actually tax, notably that not imposed by the Ottomans when they ruled the country from 1541-1699. As Muslims, they did not eat pork. Consequently, they did not tax pork, rendering it the least inexpensive meat. Even today, the tax is relatively low, at 5%. This preference shows that the belief that taxing a forbidden item is to recognize it and therefore encourage it is apparently incorrect.

Every country has had its own style of taxation weirdness. Some of the results were temporary and disappeared upon cancellation of that policy. Others have impacted a nation long after the knowledge of the law disappeared from people’s memories.  In any case, the results of taxation policy can be very surprising.

* Picture captions allow the blind to fully access the Internet.

All pictures via Pixabay

California Hope

Recently, I have spent time in the hospital with close family members suffering from UTI’s (Urinal Track Infection) in Israel and California. I will relate the differences in the hospital environment as the Japanese treat height differences: the person next to the tall one, i.e. accentuating the positive.

California, with all its problems, often is willing to invest in a vital need even if the budget is tight.  For example, under current California law, a nurse in a regular ward takes care of no more than four patients.  In practice, this meant that the nurses treating my father were attentive and patient. They were able to use their sense of humor to lower high tension situations.  Not only that, the fact that the ward was equipped with electrical IV pumps meant that they did not have constantly check the IV flows of their patient.  This meant that even at the end of their 12 hours shifts, they were pleasant and professional.  As has been said about going to prison, the punishment is being to the hospital; no more is needed.

On the same note, it should be noted in California’s favor that, albeit imposed by the judicial system, the prison system is finally starting to try to treat the sources of problems of its inmates instead of just incarcerate them.  Granted, there is a large disproportion between the amount of available resources and scale of the problem. However, there is no doubt some prisoners are not born criminals but instead people that need help. 

Alas, nothing is perfect. The condition of LA roads continues to shock and distress.  The veins and arteries of Los Angeles are truly clogged by cholesterol of awful surfacing (as well as cars of course).  The state government could clearly do a better job maintaining them.

California is well known for being ahead of its time in terms of seeking solutions. The development for electrical cars began as a mandate from California decades ago when it realized that it could never really “beat” air pollution over the long term. This attitude is clearly preferable, as an example, to that of the government of Venezuela, which has decided to deal with the problem of high inflation (68% annually) by not publishing inflation data. It would be funny if it was not tragic.

Hitting the Road

Driving, like eating, is a similar but unique experience in every part of the world.  Apart from the legal differences, i.e. making a right turn on a red light in Los Angeles, the pace and rhythm varies from country to country, often based on such factors as distances, density, kinds of roads, weather, and national character.  All together, it makes sitting behind the wheel a part of “feeling” the country no less than sitting on a chair in a café.

In the United States, a rather law abiding country despite all the TV shows to the contrary, most people actually follow the laws and are even polite.  Not only that, once you leave the crowded streets of the city, there is generally plenty of road for everybody.  Of course, there is a lot of space to cover, especially in the West where the states are much bigger.  For example, California from tip to tip is easily some 15 or more hours of continuous driving.   The meaning of this is driving in America, especially outside the cities, is actually quite pleasant.  Most roads are made for consistent high speeds (California highway 1 being an obvious exception).  The national tendency, outside New York City, of striving to be nice extends to the road.

Israel, well, is another story.  Israelis tend to tense and proud in all they do, including driving.  As for laws, they are merely suggestions for behavior, like at home.  Likewise, Israeli drivers tend to treat the road as if it is owned by their father, giving them extra privileges, such as not having to signal or let another car pass them.   As for red lights, time is money.  If you day dream for two seconds, you can be sure that the driver behind you already has his or her hand on the horn.  The speed limit and average pace on the road are often ignored, especially if you are less than 25 years of age. I live in the Galilee with a large Arab population.  Its driving style is quite interesting, generally too fast or too slow, with seat belts being a bit of a nuisance to the eight people in the car.  Sadly, the Arab population in Israeli suffers from a relatively high rate of accidents both to drivers and pedestrians.  If you are so unfortunate to find yourself in religious neighborhoods like Bnei Brak or many parts of Zefat, be very careful.  While it is clear that driving on the Sabbath may get you “rocked” in the wrong way, even on a normal day, the drivers and pedestrians alike travel in complete tranquility, oblivious to anybody else, apparently absolutely sure that God is protecting them.  On a good day, driving on Israel’s crowded roads in an interesting experience while on a bad day, you can imagine.

I would be interested in hearing other people’s description of driving in their country.