Taxes
Arthur Godfrey had one of my favorite lines in regard to taxes. He said, "I am proud to pay my taxes. Though I could be just as proud for half the money."
Much is said about taxes and most not in a positive line. There is a lot of misunderstanding on what taxes are, who pays them, how much, and where. Most of this lack of knowledge is intentional and other is just a lack of interest in learning.
Taxes are how our government operates. Without taxes it would falter and fold, just the same as all of us. The income of the government has increased in huge multiples, yet still they manage to spend more than is brought in. For years that shortfall was addressed with other taxes and by selling some type of government bond. However, the George W. Bush administration has opted to postpone the payment of their excesses to future generations. Instead of addressing the problem, they have borrowed money from foreign governments (more than all 42 presidents before him combined). So our children and beyond will be paying off the deficit, plus the interest, with so much of that money going out of the country and not helping our own economy.
So taxes will be a part of our life. They are an investment in our country and we want our representatives to spend that money wisely. That doesn't appear to be the prevailing view in Washington, or Atlanta. This money is to be used for services, defense, and other necessary operations, as well as helping other countries and people who are unable to help themselves.
There are changes that should be made to our tax system. It is unlikely that it will ever be constructed in a manner that everyone would think is fair. However, it can be made to be more fair than it is now. I believe the tax system should be some form of progressive tax. As it says in the book of James, 'To whom much is given, much is required'. This can be financial, talent, or work ability. It has gotten out of hand over the years with everyone paying more and more of their income for taxes. There needs to be a reckoning to bring things in line.
Under the current administration the tax burden has shifted dramatically with the middle class carrying an ever heavier burden. This has been accomplished on two fronts, one that was most openly debated. The one most people know about is the tax cuts, which he keeps wanting to make permanent. More than 3/4 of this tax break went to the richest 1% of our citizens, with the rest sharing less than 1/4.
This is a giveaway to the rich and did very little to stimulate the economy. Studies have shown that every dollar tax break given to people making more than $100,000 per year results in a $0.25 return per year. However, every dollar tax break given to those making $50,000 or less a year gives a return of $7.00 per year. If he really wanted to stimulate the economy, the percentage of tax breaks would have been reversed.
The more hideous and unreported giveaway was to the most profitable, multi-national corporations. These companies are allowed to set up shell companies in the Caymans and other areas in order to report less than half their income inside the US. In addition, the tax rate was lowered and in many cases tax rebates and assistance were given to these same companies. It has been an outright travesty.
Many people are touting the (un)Fair Tax as the way to go. To really discuss that will need another post. In the meantime, I recommend that you go to FactCheck.org to check out an article called Unspinning the Fair Tax. This is a pretty good and fair look at the proposal so you can get a basic overview to consider. Fact Check is not a left wing operation either. It is the site recommended by VP Cheney in the debates during the 2004 electon.
http://www.factcheck.org/taxes/unspinning_the_fairtax.html
We are told over and over that the wealthy pay the majority of the taxes. That is simply not the case. They do pay a larger dollar amount per person, yet they still have a much larger dollar amount left after taxes. Before Bush those making more than $100,000 per year paid roughly half of the income taxes, and those making less paid roughly half. This is from the IRS figures. Those numbers have come down for the wealthier part of our citizenship over the past 6 years.
When we discuss this issue, it will help if we use real numbers and at least attempt to talk with facts and not myths. This issue will produce a lot of rhetoric, most of it misleading and much of it false. Look deep and search for the truth.
Much is said about taxes and most not in a positive line. There is a lot of misunderstanding on what taxes are, who pays them, how much, and where. Most of this lack of knowledge is intentional and other is just a lack of interest in learning.
Taxes are how our government operates. Without taxes it would falter and fold, just the same as all of us. The income of the government has increased in huge multiples, yet still they manage to spend more than is brought in. For years that shortfall was addressed with other taxes and by selling some type of government bond. However, the George W. Bush administration has opted to postpone the payment of their excesses to future generations. Instead of addressing the problem, they have borrowed money from foreign governments (more than all 42 presidents before him combined). So our children and beyond will be paying off the deficit, plus the interest, with so much of that money going out of the country and not helping our own economy.
So taxes will be a part of our life. They are an investment in our country and we want our representatives to spend that money wisely. That doesn't appear to be the prevailing view in Washington, or Atlanta. This money is to be used for services, defense, and other necessary operations, as well as helping other countries and people who are unable to help themselves.
There are changes that should be made to our tax system. It is unlikely that it will ever be constructed in a manner that everyone would think is fair. However, it can be made to be more fair than it is now. I believe the tax system should be some form of progressive tax. As it says in the book of James, 'To whom much is given, much is required'. This can be financial, talent, or work ability. It has gotten out of hand over the years with everyone paying more and more of their income for taxes. There needs to be a reckoning to bring things in line.
Under the current administration the tax burden has shifted dramatically with the middle class carrying an ever heavier burden. This has been accomplished on two fronts, one that was most openly debated. The one most people know about is the tax cuts, which he keeps wanting to make permanent. More than 3/4 of this tax break went to the richest 1% of our citizens, with the rest sharing less than 1/4.
This is a giveaway to the rich and did very little to stimulate the economy. Studies have shown that every dollar tax break given to people making more than $100,000 per year results in a $0.25 return per year. However, every dollar tax break given to those making $50,000 or less a year gives a return of $7.00 per year. If he really wanted to stimulate the economy, the percentage of tax breaks would have been reversed.
The more hideous and unreported giveaway was to the most profitable, multi-national corporations. These companies are allowed to set up shell companies in the Caymans and other areas in order to report less than half their income inside the US. In addition, the tax rate was lowered and in many cases tax rebates and assistance were given to these same companies. It has been an outright travesty.
Many people are touting the (un)Fair Tax as the way to go. To really discuss that will need another post. In the meantime, I recommend that you go to FactCheck.org to check out an article called Unspinning the Fair Tax. This is a pretty good and fair look at the proposal so you can get a basic overview to consider. Fact Check is not a left wing operation either. It is the site recommended by VP Cheney in the debates during the 2004 electon.
http://www.factcheck.org/taxes/unspinning_the_fairtax.html
We are told over and over that the wealthy pay the majority of the taxes. That is simply not the case. They do pay a larger dollar amount per person, yet they still have a much larger dollar amount left after taxes. Before Bush those making more than $100,000 per year paid roughly half of the income taxes, and those making less paid roughly half. This is from the IRS figures. Those numbers have come down for the wealthier part of our citizenship over the past 6 years.
When we discuss this issue, it will help if we use real numbers and at least attempt to talk with facts and not myths. This issue will produce a lot of rhetoric, most of it misleading and much of it false. Look deep and search for the truth.
posted by NHThomas | 4:58 PM
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