text: Another thing the public doesn't understand but the GOP "leaders" certainly do:  taxes paid at the state level are deductible on the federal forms, fees are not.  That means you would actually be paying less than the fee imposed now if you paid the tax instead.  The GOP is happy with it because, as the article clearly shows, fees impact the middle class and working folks a lot more than the well to do (fees are usually flat while taxes are usually a percentage).  A increase of 10 bucks on license fees doesn't effect the guy with the Bentley but definitely affects the guy with the 1989 Geo Metro.