We've entered a strange, some would say wonderful new world of taxation.

It used to be that you had to either tax taxable income, or tax the purchases of goods. But that is no longer the case. Now the government can tax you on good you didn't purchase! Call it a phantom sales tax.

You didn't buy that good the government said you should buy? That's ok--you will pay the tax anyway sir!

For government lovers, liberals, big government proponents, threateners of civil liberties everywhere--this is a great result. Why, we don't want the people to have to do anything in order to tax them do we? Of course not! We want the ability to tax people if they didn't do something we wanted them to do! That is the logical outcome of the oppression thinkers. 

What is the likely outcome of all of this, from a political kurfuffle perspective?

Think of it this way--our tax code is already riddled with special interest loopholes and other special handouts and giveaways, making the whole contraption so complex no one can understand it. This complexity will become worse. That is all.

Say goodbye to tax simplicity. Say goodbye to any hopes of a tax code that is fair and just and easy to understand.

Make no doubt, whenever the government finds a new way to tax, it doesn't stop at the one groundbreaking tax it managed to discover. Soon will we all Obamacare taxes all over the place...and soon state and local governments will get involved as well.