The AP informs us: "Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it's simply somebody else's problem. About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That's according to projections by the Tax Policy Center, a Washington research organization." Of course, those 47 percent only think they're not paying taxes. Many of them are actually paying them in payroll taxes, property taxes, sales taxes, and so on.
Stephan Tawney, writing at the American Pundit, sees the collapse coming our way: "Unless something changes to even out the financial load, we're witnessing the beginning of the end of the republic. You simply can't maintain this country with a majority able to vote for the minority to pay for everything. You can't have a majority with no financial interest in the federal government and who runs it. Imagine a future where a minority of Americans have to pay all of the taxes but don't have enough political power to determine who runs the nation. The majority, with no financial interest in maintaining limited government or smaller budgets, would keep electing leaders who promise to take even more money from the minority to give to the majority. The tax-free majority would, effectively, keep voting itself free services and in general more money from the minority. The minority would be locked into funding everything the majority wants, unable to overcome the political power of the majority moocher class."
At Right Angles, Jon Ham -- not the one from Mad Men -- thinks the process will be interrupted before the worst-case scenario: "This is America, not Canada or Britain. Producers here won't stand for supporting leeches and parasites who are content to be pulled along by those who work. There will be a tax revolution before that happens. Count on it."
Tigerhawk tries to find some silver lining: "If the Democrats (and, to be sure, the big government Republicans, who are, sadly, legion) manage to excuse another 4 percent of households from the federal income tax, non-taxpayers will be in the majority and, presumably, able to vote themselves even larger benefits. At least until the taxed minority works it out to earn less money. Fortunately, people who have not figured out how to earn enough money to pay income tax often do not choose to vote. At least we've got that going for us."
Doug Ross concludes that the Galt-Meter has reached the red zone.
I think the analysis that producing Americans won't put up with this is absolutely correct. There will be a tax revolt, whether it takes the form of people reducing their income to lower their tax burden...and therefore tax revenues to the government...or in the form of direct action against the government. The people who are the producers in this country simply will not be manipulated by the non-producers.
4 comments:
I understand your point in principle that everyone needs to be invested in government accountability. However, n the case of people who make just enough money to live, it's unrealistic to expect them to pay income tax. People who are just surviving would never be able to make enough to get ahead of their expenses. And everyone does pay tax on purchases, so it's really not the case that people who don't pay income tax are not taxed. Certainly they are taxed at a local level.
The question is really how large the government should be, and how much that government costs. And having government live within bounds, inside a budget, also limits the intrusion of government into the lives of citizens.
Point taken, Ann. But when it comes to something like health care, even "poor" people can probably afford a $10 co-pay for an emergency room visit.
I work in a college health clinic where the patients don't pay a co-pay to see an RN, MD, or PhD. I can't tell you how many of our patients don't even call to cancel their visit; they just "no show." Yet all these so-called "poor" students with no insurance manage to have the latest cell phone, and are on it calling or texting all the time.
Explain that to me.
I am a conservative. but for the second year in a row I won't pay any taxes. I'm self employed and work in the ag industry, so most of the things I do are tax write offs, most of the things I buy are tax write offs, and at the end of the year we're just thankful to break even. This is often the case with business owners, but probably more the case with farmers/ranchers. I do think that it's not fair to those who work to provide services for those who "won't".
The medical thing is complicated, but my short answer, Nightingale, is that I agree with you completely!
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