It’s Tax Time Again
posted in General |It's tax time again
When George Bush identified a tax reduction as a major plank in his Presidential Campaign platform, I signed on in a hurry. Paying Federal taxes is not one of my favorite sports. I was convinced that his tax message would resonate throughout the country and it did – but not to the extent that I had imagined. I was sort of puzzled over a public reaction that was lukewarm. Then I spotted an article which published 1999 IRS data obtained from the Joint Economic Committee of the Congress. Mind you, this is 1999 data.
The top 1% of all US earners paid 36% of all of the personal income tax. The top 10% of earners paid 67% of the personal income tax and – get this – the top 50% of earners paid 96% of the personal income tax that year. Conversely, that means that the lower 50% of the earners in the US paid only 4% of the personal income tax. It figures that folks who pay little or no income tax don't get too excited about a tax reduction.
Obviously, you have to pay taxes in the first place in order to qualify for a reduction. How do you get a reduction from taxes you didn't pay? But of course, the Gebhart/Daschle “tax and spend” Democrats quickly dubbed George's program as a tax break for the rich. And of course we might also include some Republicans spenders who are hot on subsidies. When a tax reduction is in order, don't you start with the people who paid the taxes – or is that too simple? But Dubya's message did resonate – with real tax payers.
Sweeping all of the camouflage aside, the kernel of the issue is that the Congressional big spenders want no part of slowing down the revenue headed for Washington. These guys have never seen a tax dollar they couldn't spend. Our tax structure functions to send more and more money to Washington without changing so much as a comma in the tax code. Percentages and brackets are their allies. When you get a raise, a promotion, or a bonus, better discount it up front. Big Uncle will get his share – for sure..
A battle cry for the American Revolution was “taxation without representation”. Now we have taxation WITH representation. I guess we are better off – or are we? It's tax time again, so while you struggle through the forms think about your noble sacrifice as one of the 50% who assume 96% of the country's income tax burden. We all can accept taxes up to a point. But maybe enough is enough. Yet, we know that our tax dollars will be well spent – right??