It’s April 15th, and like every year, we’ll be seeing news stories tonight of cars lined up at the post office carrying happy taxpayers who are dutifully submitting their last-minute returns.
Happy? Well, maybe some. At least those who don’t OWE anything.
Rep. Mike Pence took to the House floor today to speak about Tax Day 2010.
Pence’s money quotes:
This Congress has voted and this President has signed into law $670 billion in tax increases in the last year and a half. $670 billion! And this list includes 14 tax hikes signed into law totalling $316 billion on middle class families, in direct violation of the pledge President Obama made not to raise taxes on individuals that made less than $200,000 per year or families filing jointly that make < $250,000 per year.
…
It is truly astonishing to think, that arriving on the scene during the worst economy in 25 years that the response of this administration and this Congress has been to take what in my judgement was excessive spending under GOP control and put it on steroids and pay for it with hundreds of billions of dollars in new taxes, and of course enacting more government.
Hmmm. Doesn’t sound like Rep. Pence is too happy about April 15th, and I doubt that he thinks you are either. What he (and we) are really angry about is that President Obama and the Democrats are clearly lying through their teeth about cutting taxes and spending. (And if you need further documentation on this, check out this handy reference provided by the GOP House Ways and Means staff)
But are we really upset about our taxes?
CBS News would like us to think that most of us are happy about our taxes. Yesterday, on the eve of Tax Day 2010, they published the results of a survey stating that “Most Tea Party Supporters Say Their Taxes Are Fair”. Why, they have graphs and everything!
Yet while some say the Tea Party stands for “Taxed Enough Already,” most Tea Party supporters – 52 percent – say their taxes are fair, the poll shows. Just under one in five Americans say they support the Tea Party movement.
However, those most active in the Tea Party are less satisfied with the amount of income taxes they will pay. Fifty-five percent of Tea Party activists – those who have attended a rally or donated money – (about 4 percent of Americans overall) say their income taxes are unfair.
Americans overall are more likely than Tea Partiers to describe the income taxes they’ll pay this year as fair – 62 percent do, according to the poll, conducted April 5 – 12.
Call me a skeptic. Why? Because CBS’s article conveniently ignores a key fact: in 2009, about 47% of Americans paid no Federal income tax. Regarding the current tax structure, the AP (surprisingly) points out::
The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.
The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.
“We have 50 percent of people who are getting something for nothing,” said Curtis Dubay, senior tax policy analyst at the Heritage Foundation.
CBS quotes a survey stating that about 62% of Americans think they’re taxed fairly, yet about 47% of Americans pay no taxes. I’m guessing that approximately 15% of Americans probably pay very low taxes (62-47). Based upon this, CBS’s survey is, to put it kindly, garbage. After all, wouldn’t YOU find that zero or almost zero taxes would be “fair”? I know I would.
But let’s talk about “fair,” shall we? The AP quote alludes to this but doesn’t come out and say it: is a tax system where nearly half of the citizens do not pay taxes really “fair?” Most all of us benefit one way or another from the results of governmental spending. Yet only half of us are paying for it. The Democrats figured out long ago that vote buying works, and they’ve done it quite effectively with the “progressive” tax system: governmental giveaways and no taxes. You gotta love it…if you’re one of those taking the free ride.
About a year ago, Ari Fleischer, GWB’s former press secretary, penned a fascinating essay for the Wall Street Journal, making the case that “Everyone Should Pay Income Taxes.” It is well worth reading the entire thing, as Fleischer makes many of the same points as the AP. But he comes to a conclusion with which I somehow doubt the AP would agree:
I favor the abolition of all Social Security, Medicare and estate taxes. In their place, we should create a simple income tax system that has no deductions or credits at all. The result would be a progressive, multitiered income tax in which everyone pays. The bottom 50% won’t be excused from paying the cost of government and top earners will no longer have the loopholes they’re used to. The middle-class, whose wages have stagnated, will benefit from economic growth. Social Security and Medicare will be funded from income taxes, ending the myth that these programs are supported through government trust funds and payroll taxes. The tax base will broaden dramatically, allowing rates to fall and helping to foster what’s most important — economic growth.
I’d also create a mechanism so tax rates go up or down for everyone — no more dividing the country by lowering taxes for some or raising them only for others. A revenue system whose purpose is to pay the government’s bills should apply fairly to one and all. If Congress wants to raise or cut taxes, it should do so for everyone.
Another benefit is that such a system will create an environment in which spending programs receive the scrutiny they deserve. It’s funny what happens when everyone pays the bills; Americans may want less spending so they can pay fewer bills.
Interestingly, last year even CBS came to the conclusion that the tax system is broken. Declan McCullagh wrote:
The perils of today’s situation should be obvious. The United States is close to a tipping point – where most people can skip the post office run on April 15 to mail a check because they’re expecting one from the government instead.
“It is somewhat odd that you have a decreasing number of folks paying into the federal income tax system, a decreasing number of folks who have a stake in what the government pays for,” says Matt Moon of the non-partisan Tax Foundation in Washington, D.C.
It then becomes tempting to vote for politicians promising more and more handouts, paid for by money forcibly extracted from an ever-shrinking number of their neighbors. In addition to being immoral, it’s poor public policy: people who pay no taxes but nevertheless get benefits are less likely to be careful overseers of their elected representatives.
“At some point people become less and less invested in making sure their government is accountable and frugal,” says Peter Sepp, vice president for policy and communications at the National Taxpayers Union, a lower-tax advocacy group. “If you pay very little for getting all kinds of government benefits, you might view those programs as a bargain, even though they may waste tens of billions of dollars a year.”
Former British Prime Minister Margaret Thatcher is getting a lot of air play these days – not because of the forthcoming UK elections, but because of her now-famous quote:
The problem with socialism is that eventually you run out of other people’s money.
And that, in a nutshell, is the problem we are faced with in our government today. The tax system is broken. The Obama Wealth Redistribution Plan is well under way. Nearly half of Americans receive governmental benefits but do not pay. Tea Party protesters are rightfully angry at the Democrat majority’s flagrant disregard for the will of the people. Something has to give.
I don’t know if Ari Fleischer’s specific suggestion is the answer. But I do believe there are two items to address:
- Reduce taxes and spread the burden to all taxpayers – if all Americans share the burden, perhaps there will be more attention paid to the need for fiscal restraint
- Return the United States to a representative government that is responsive to its citizens and no longer sees it as its responsibility to “spread the wealth around”
Enjoy your trip to the post office tonight, and remember to raise a toast to the fairness of our tax system…if you can afford it after you write your check.
Steve Maley
KnightsofMalta
What's that crap about people under $50K paying no taxes?
bk (Diary) Thursday, April 15th at 8:16PM EST (link)I did my US Army E-4 son’s tax return today. He made less than half of that $50K figure and his total tax was over $1,500. Add in social security and medicare and that more than doubles, to a total of nearly 15% of his income.
Oh wait – I should look on the bright side. He’s deploying in a couple weeks, so he’ll get a tax break for being in a combat zone most of this year.
Yep.
Bill S (Diary) Thursday, April 15th at 8:21PM EST (link)My kid made a lot less than that (maybe $11K?), and he had to send about $400 to the gubmint. Not sure where his big tax break went…
“It’s such a fine line between stupid, and clever.” – David St. Hubbins
what crap about 50K?
Doc Holliday (Diary) Thursday, April 15th at 8:23PM EST (link)unless I missed something in the diary, the diarist said the truth about 47% not paying Federal Income taxes. The key to not paying federal income taxes is to pump out a few kids. And social security and medicare are not considered to be income taxes.
the reality is everyone pays taxes. Hell, illegal alien drug runners pay taxes. But almost half of our adult population does not pay federal income taxes.
Molon Labe!
bk & Bill it's the earned income tax credit and child tax credit or additional child tax credit
mom2oneson (Diary) Thursday, April 15th at 9:04PM EST (link)11K with 2 children they would have gotten at least 5,000 as a refundabe credit for the earned income credit plus more for the additional child tax credit. That is just a guestimate no tables in front of me.
Some families have daycare expenses that does not give them a refundable (it only reduces their fed liability if they owe) but that can be a good chunk of change too. There is an earned income credit for people without children but it’s much lower without children and I forget which age it starts at, it’s not 18 the last time I looked.
I don’t understand why food stamps and TANF are always the big evil welfare problems but refundable tax credits and other things like pell grants are not seen as welfare. It’s kind of weird that TANF even for a full year might be less than some people’s earned income credit but it is so much more stigmatized? There is also no limit to the earned income credit, if you had a baby at 18 and had another one at 36 you could collect it for a long long time unlike TANF that has a 5 year limit.
I FOR SURE don’t uderstand why so man families I know complain about the socialism and the current president lately but are rejoice about their big tax refund due to the earned income credit. It’s like they don’t mind it when the policies of redistribution benefit them??? I don’t know what it is but it’s weird to me.
BTW that is really nice of both of you to do your kids tax refund for them.
Taxact has been a huge blessing in my life, my taxes used to have so many errors on them.
btw I think it's weird
mom2oneson (Diary) Thursday, April 15th at 9:11PM EST (link)the media never picks someone that earns 12,000 with 2 kids..to show the tax credit is like 50% of their income for the year. This is why at Walmart that has Jackson Hewitt cubicles and H&R block is packed with young families the first week in Feb and the car dealers will file the taxes for people so they will buy a car with the big windfall.
I think the original idea of the earned income credit is good to offest social security and fica taxes for the low income but I think they should stop at 16% for self employed or 8% for employed. Nobody earning 12,000 is paying 5,000 in social security tax!
Oh boy!
neoavatara (Diary) Thursday, April 15th at 8:22PM EST (link)Enjoy feeling your wallet get any lighter? At least your back pain may improve.
If this day couldn’t make you more depressed, how about the facts in how deep in a mess we are in, and getting worse by the day?
http://neoavatara.com/blog/?p=10740
www.neoavatara.com/blog
Abolish the AMT
ddstrain (Diary) Thursday, April 15th at 10:05PM EST (link)The AMT is doing a better job of pillaging than the Huns, Visigoths, Ostrogoths, Franks, Vikings and Conquistadors … combined.
Last year, AMT ate my daughter’s college fund. This year it just ate 1/2 year’s worth of tuition, room, board, books, fees and incidentals.
Damn it, my car is 10 years old, the shoes I’m wearing are 6 years old. We ain’t “rich”.
Abolish the AMT before it impoverishes any mor families.
Mike Pence is one of the good guys
carlsbadd Thursday, April 15th at 10:24PM EST (link)I meet Mike Pence and his son, he is very humble and a really down to earth person.
He is a student of history and I enjoyed speaking to him and his son.
When I got my taxes done this year at Jackon Hewitt my tax person told me that she got a lot of complaints about “making work pay” many of her clients expected a bigger refund , but since Obama gave everyone more money in their paycheck many people were due less at the end of the year via a refund.
I always tried to keep more of my money but it seems that many people look forward to the tax refund to pay off the xmas bills that are still lingering, go on vacation , etc.
Imagine if we had to make a tax payment every month if we did not have payroll taxes. More people would wake up a little.
God bless Mike Pence
jcincy Friday, April 16th at 9:45AM EST (link)Thank you Mike Pence for speaking the TRUTH even in a hostile environment.
Despite the terminology used Social Security/Medicare/Medicaid immediately takes 15% off the top of my paycheck, my wife’s paycheck, and my daughter’s paycheck. That money is gone forever.
On top of that we pay: Federal income taxes, Ohio state income taxes, local income taxes, worker’s comp fees, unemployment insurance, etc… and that’s just from our paychecks.
In addition we pay state and county sales tax and property tax. We pay fees for licenses, license plates, to fish, use the parks, etc…
We pay a myriad of taxes on gasoline along with special taxes on phone use.
We pay taxes on the the little interest we earn, capital gains taxes (not so much lately), and other taxes for saving/investing our money.
So we are taxed when we earn it, spend it, save it, convert it into property, invest it, and when we pass it on to our children.
“Providence has given to our people the choice of their rulers, and it is the duty, as well as the privilege and interest of our Christian nation, to select and prefer Christians for their rulers.” — John Jay
Research
graduateresearch (Diary) Friday, April 16th at 3:11PM EST (link)My name is Natalie Hopkins-Best. I am a graduate student at the University of Minnesota, and I am conducting research for my master’s thesis. As a mass communications student, I am very interested in the way that people use news blogs as a form of their news intake. I would greatly appreciate you taking a few minutes of your time to complete an online survey that should take no more than 15 minutes. If you have any questions or concerns, do not hesitate to contact me. Please follow this link to begin: http://www.zoomerang.com/Survey/WEB22AGLALXAPU
Thank you sincerely,
Natalie Hopkins-Best
School of Journalism and Mass Communication
University of Minnesota
111 Murphy Hall
206 Church Street SE
Minneapolis, MN 55402
hopki129@umn.edu