We at InkSure encourage governments to use efficient tax collection aids and procedures. One strategy we often encourage is the issuing of high tech machine readable tax stamps with covert anti-counterfeiting protection as a way to be sure governments collect the revenue owed to them. But sometimes things are not so easy.

We are living in a world were governments are broke and barely have enough money to provide basic services. In some cases, like the State of Minnesota, the government has had to shut down because it ran out of money and a new budget could not be passed.

In Minnesota we have a situation where retailers could run out of tax stamps and they have no way to purchase more because the government isn't printing them! A situation like this encourages all kinds behavior, none of which are ideal for a cash-strapped government:

• A store selling items that require tax stamps could simply stop selling the items until the government begins printing the stamps again. This would be the legal option but this could be disastrous for the economy. One convenience store owner in Minnesota said he could actually go out of business if he does not sell items that require tax stamps.
• Stores selling items that require tax stamps could simply sell the items without tax stamps and work something out when the government is back up and running. Of course this is illegal and could cause large revenue losses. This is also a big risk for store owners.
• Store owners could sell items that require tax stamps without documentation to those who are willing. This is also completely illegal and a form of tax evasion.

Whenever there is a possibly of a government shutdown or government cuts, there is always a set of core services that are deemed "necessary" and left running (such as the police). There are many other services like tax stamp printing which are not life-sustaining requirements but are necessary on some level because the private sector cannot operate legally without these services in place.  To add insult to injury, tax stamp programs (when done right) are self-sustaining and actually generate revenue for the government. This eases budget problems that the government tries to address by cutting services and shutting down!

When a government looks into making cuts or shutting down, it should consider keeping services like tax stamp printing that are self-sustaining and make money for other government operations.  It is better for the economy and better for government revenue.

Want to learn more about covert tax stamp technology? Make an appointment with an InkSure representative.