4 Impacts a New Voting Bill Could Have on the Economy and Your Wallet
Written by
Kerra Bolton
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Jenna Klaverweiden
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Stricter voter registration rules could come with financial trade-offs.
While the Safeguard American Voter Eligibility (SAVE) Act focuses on proof of citizenship requirements to vote, some experts say any added administrative costs ultimately could have to be funded through taxes and fees. Here are four impacts a new voting bill could have on the economy and your wallet.
A Possible Direct Fee
Brandon Parsons, an economist at Pepperdine University Graziadio Business School, said added expenses could be funded through a direct fee similar to a Department of Motor Vehicles charge.
While no specific fee is included in the legislation, if adopted, a service fee could be the most immediate way households could see the impact.
Higher Income, Payroll or Property Taxes
Instead of a direct fee, governments could spread the costs across broader tax bases. Parsons said income taxes, payroll taxes or property taxes are possible funding channels. If that approach is used, households could absorb the expense through slightly higher tax bills.
“It will depend on the specifics of the legislation,” he said.
For homeowners, that could mean higher annual property taxes. For workers, it could mean incremental increases through payroll deductions over time.
Gradual Cost Increases
Most consumers would not feel the financial effects right away.
“Fees are normally adjusted, regulated prices are approved, or taxes are indirectly increased,” Parsons said, adding that such changes often take one to two years to phase in.
That means any increase would likely be gradual rather than a sudden spike.
Pressure on Fixed Expenses
When local governments adjust taxes or fees, fixed expenses tend to feel the pressure first.
For example, Parsons said that since housing and utilities typically consume a large share of household income, they are difficult to reduce in the short term. Transportation and insurance costs can also be affected if broader tax adjustments are used.
Even modest increases tied to property taxes or service charges can strain monthly budgets.
Do the Benefits Outweigh the Costs?
Wayne Winegarden, an economist at the Pacific Research Institute, said the broader economic question is whether the benefits of the legislation outweigh the costs.
“How much additional costs will the SAVE Act requirements impose on local governments and potential voters?” he said. “What other measures will not be implemented because the money is being spent on these issues?”
Winegarden said the problem of non-citizens voting could be solved by other, less expensive measures, such as improving the nation’s electronic election system. “From a practical impact, it is unclear that the benefits will outweigh the costs, especially the opportunity costs,” he said.
For households, the impact could depend on how states and counties choose to fund the added requirements. The broader debate centers on whether the costs are justified.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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