Monday, April 16, 2012

Taxes....the good, the bad, and the ugly

This week it's all about taxes.  First the good:  April 17th is Tax Freedom Day.  The average American has essentially paid all the money he's earned so far this year to Uncle Sam to satisfy his tax bill.  After tomorrow he'll be working to put money in his pocket.  YEA!!


Now the bad:  Your taxes are due today.  Pay up.  BOO!!


Finally, the ugly:  IMO most Americans wouldn't mind paying their taxes IF we felt our government was being run efficiently and fairly.  I've heard it said that most Europeans don't mind paying much higher taxes than we do because they feel like their government is run efficiently (?) and they're getting something for their money.  A college education is inexpensive or even free for most, child care is free or heavily subsidized, unemployment and job re-training is much more generous, etc.  We won't even go into health care.  


Yes, those things cost a lot of money, and Europeans are taxed through the nose to pay for it (except the Italians and Greeks apparently), but at least they get something for their tax dollars...er...euros.  And yes, since the end of WWII NATO (read: the USA) has covered much of the cost of their national security, leaving them more money for their social programs, but still....  (European readers, if this is not true please feel free to correct me.)  


By contrast, here in the US we have a system that taxes one group and generally gives the benefits to another group, fomenting class conflict.  For example, I had to pay 100% of the cost to have braces on my kid's teeth.  I didn't qualify for any type of government help.  (Here in Texas kids on Medicaid can get them for free.)   College....100% on me.  We made too much to qualify for any grants.  Child care....no government assistance for us.  I know some will say, "But Scott, you could afford to pay for those things for yourself."  I disagree.  It was a HUGE struggle for us at the time.  We had to go without a lot, but my tax bill still came due on April 15th.  Imagine paying for car insurance, then having an accident and being told you didn't qualify for a repair because you made too much money.  Same principle.  You can imagine how such treatment might lead to "tax resentment".


Yes, of course, the rich pay LOTS in taxes, but they also get LOTS of special treatment / tax breaks, etc. And corporations....somebody 'splain to me again why we give BILLIONS of dollars in subsidies to highly profitable companies like ExxonMobil, ChevronTexaco, ConAgra, and others?


Here's my point:  I'm not necessarily suggesting we should adopt Europe's social programs.  We can't afford what we have now, I contend because our government is run so inefficiently it's criminal.  What I am suggesting is that we need to spread the payment of taxes and the benefits they bring more evenly.


OK, rip me. 


S

3 comments:

  1. Nope. I can't rip apart anything you're saying. Ending the Bush tax cuts along with tax subsidies to oil companies are good places to start.

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  2. I was just talking somewhere else about how I shouldn't complain about my local tax because I voted for the increase last November :)

    I agree that there is definitely inequity. As a bleeding heart liberal I tend to believe that all corporations are evil & should be subject to a penalty evil tax. Of course, I WORK for a corporation so I should just shut up now!

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  3. I basically agree with you, so no ripping from me. A lot of resentment from those paying for "programs" might be eliminated by making it just a lot more attractive to work (higher wages? - I dunno). Of course, at the same time nobody should get penalized for being disabled and unable to work (we'll all get old and will most likely end up there).

    Wish I had all the answers, or even just one or two answers. Sometimes I wonder if the Canadians have it all figured out. During the global banking crisis, not one single Canadian bank failed.

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