Yeah Yah, I know, real original…whatever made me think about writing an article about taxes , now.
Be that as it may, I think today is as good as any other day to talk about taxes and how they work, or don’t work .
We all pay taxes. Well , wait a minute, no we don’t all pay taxes do we? Some of us are lower-income and don’t pay any taxes after deductions are figured in. In some cases, you get a refund even though you didn’t overpay any tax. But with credits and such, it happens that you get money back from uncle sam that frankly isn’t yours. On the flip-side, some of us are very rich and yet pay little or no taxes. The rich have various tax shelters , and yes even a few allowed deductions which allow them to avoid paying a lot of taxes. Then there are the rest of us in the middle. By and large we in the middle try to break even or look for a small refund. We make too much money to qualify for all the deductions lower-income people get, and we’re not as rich as the upper income brackets so we can’t afford to take advantage of loopholes and tax shelters.
I’ve just given the class warfare people plenty of ammunition in that last paragraph. But class warfare is just as harmful to our nation as is a screwed up tax code. Class warfare is a hold-over from our European heritage and has been outdated for over 200 years in our country. We Hold These Truths to be Self Evident, that All Men are created Equal…. Yah, those words pretty much put the nail in the coffin of class warfare as a legitimate argument. Well, being the ignorant students of history leftists tend to be, they’re still using this tired old hack of a line today. They try to pit the “rich” against the “poor” and the “middle class” by screaming Tax the Rich!!! It’s rather insulting that a country founded on the principle that all men are created equal, would entertain ANY notion of class warfare in our country, even worse when it comes out of the mouth of our president.
It isn’t that hard to find the truth about who pays taxes and how much. Just go to the IRS website and look up tax liabilities by income group for a given year. Here is a link to a page that shows the breakdown of how much each income group pays in taxes as a percentage of the total.
Scroll down to table 1. There you will see that the top 1% of income earners pay 38% of the total tax bill for individuals. If you look further, you’ll see that the top 25% of income earners in this country pay 86% of the taxes. Well those top 25% must be rich people, au contraire mon ami , look at what yearly income qualifies for the top 25% of income earners….67,000 dollars a year!! Bet you didn’t know you were an evil rich person now did you? Keep reading and you’ll find at the bottom of that chart that people in the bottom 50% of income earners pay…..2.7% of the tax bill, that means that the rest of us, earning over 33,000 a year are paying 97.3% of the tax bill….and the libs want to raise taxes on the evil rich? Because they feel the rich aren’t paying their fair share. Congratulations everyone, we’re all RICH!!!!!!! The so-called evil rich, are paying nearly 40% of the freight here people, how is that not paying their fair share?
The president’s own deficit commission suggested a solution. In some bizarre twist of fate, a government commission actually came up with a sound proposal to fix the problem. Lower taxes across the board and BROADEN the tax base. What this means in simple terms is that the tax burden will be spread across ALL income brackets, so everyone is pitching in their fair share. If everyone is paying lower taxes, you actually increase revenue to the feds. Instead of 50% of the people paying 97% of the taxes, 100% of the people will all pay something in taxes. Granted, these tax rates will be adjusted for income, but no more imbalance in our tax code. Lower tax rates, coupled with a broader tax base ( this means more people paying taxes ) will increase revenues and spread the tax burden equally among the populace. More people paying less taxes equals increased revenue. It’s not the Twilight Zone, it’s simple math.
This is a sound proposal, and would work provided loopholes are closed up etc. As sound as this proposal is, I still have my doubts about it in the long-term. You see, the problem is that Congress would still be able to screw it up in the future by handing out various tax breaks to favored groups, thus skewing the numbers. In my humble opinion, the only real solution is a flat tax. Everyone pays a set percentage of their income per year in taxes, no loopholes, no thousands and thousands of pages of tax code to wade through every year. Say it’s 12%, a figure I’ve heard thrown around as a good start. So, for every 100 dollars you earn, the government gets 12 bucks. No one is immune, no one can hide their money in tax shelters etc because there would be no tax shelters available. Governments couldn’t play favoritism with the tax code, no one could claim so and so wasn’t paying their fair share etc.
I know, it makes too much sense, and would never fly in DC…but it’s high time we fixed our tax code once and for all. What do you guys have to say about it?