Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
Tax time is a bad time..
Published on April 16, 2005 By Draginol In Current Events

One has to wonder about the sanity of anyone who would, the day after April 15th (tax time in the US) argue that we aren't paying enough taxes.

I invite those who think they're undertaxed to write a big old check to the government so that they can pay their share.  Because in my experience, the people who scream the loudest for more taxes aren't paying their share.

The ones yelling that the "rich" should pay more taxes are typically people paying trivial amounts of taxation already.  They're either people who pay little because they don't earn very much money, or they're wealthy people (like John Kerry or John Edwards) who know how to play the tax game to avoid paying taxes.  Think Bush and Cheney haven't paid enough? Check out John Edwards and Kerry who pay relatively little in taxes due to playing games with personal LLCs and the like.

I pay taxes.  I pay a LOT of taxes. I also happen to believe in progressive taxation. I believe that the wealthy in this country should pay more, even as a percent, than others because it was their (our) luck to be born in a country that provides such opportunity. 

But at the same time, don't yell that I should pay even more in taxes.  For me, as a working person, taxation represents time I am spending working for the government.  Let's take a public school teacher, for instance. 

I have friends who are teachers.  One I know makes $46,500 per year.  She works 182 days per year with each day being 6 hours.  She sometimes works a few hours on a weekend grading papers and such. So let's give her the benefit of the doubt and say she works 8 hours per day. That's 1,456 hours per year.  After deductions, she pays 15% federal taxes.  That's 218 hours each year she works for the federal government.

In 2004, based on my schedule, I worked approximately 2,700 hours. After deductions, my rate rate was 33%. That means I worked about 900 hours for the federal government.  That's over FOUR times more hours I was indentured to the federal government than my teacher friend.

Forget the money for a second, let's look at it as a purely labor point of view.  I was working for the federal government nearly as many hours as my teacher friend worked for herself.

And what do I get in return? Do I get to drive on special roads? Do my kids get to go to special schools? Does the government send me a basket at Christmas? Obviously not.  In the private sector, if I was putting 4 times the effort into something I would get extra appreciation.  I don't have spend extra on cable because I work more hours and earn more money do I? I don't pay extra for water or electricity.

Most people I know who scream about taxes don't work anywhere near the number of hours I and others like me do.  They have no idea that the typical person who makes a lot of money also works a lot more hours. 

I look back at the past year and don't look just at how much money I paid in taxes, I look at how many hours I spent working not for my family but for the federal government. And then I see ungrateful people screaming I should have to work even more hours for the government -- often people who barely work full time if at all.

Now, someone might say "Nobody is forcing you to work all those hours". Very true.  I could have chosen a different career.  But if people like me did that, there'd be a lot fewer jobs.  We provide jobs for people who in turn make money to support their families.  Our economy is absolutely dependent on people who are willing to work a lot of hours to create new opportunities.

The only question is where the threshold is where it's no longer worth working so many hours.  I already work over 900 hours a year just for the federal government (and another 165 for the state government).  I'm sure there's a point where I'd say "Screw it. I've got plenty, I'm not going to put in these hours anymore."  Is this the result that tax-increase advocates want though?


Comments (Page 2)
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on Apr 17, 2005
Bush made $764,219 and paid a total of 243,000 in taxes including Social Security, Medicare, Property, sales and income taxes. He had a total tax rate of 31.8%. Cheney had a total tax rate of about 25%. In 2001 Bush paid about 37% and Cheney paid about 42%.

They did well for themselves!


Hey! When you pay a quarter of a million in taxes in one year, then you lecture to us! Until then, shut that pie hole up! I dont want to pay that even tho i am rich by your standards.
on Apr 17, 2005

Col Gene is working off the false assumption that everyone thinks that people should pay vastly different sums of money to the federal government for the same services.

At the end of the day, Bush paid $243,000 to the federal government. That's a lot of money.  I find it Col Gene gets obsessive over raw dollars when talking about the deficit but then turns around and talks about percentages when talking about tax rates.

on Apr 17, 2005
Hmm progressive tax systems are used because those with more money also have a lower marginal utility for the money they have. By removing progressivity from the system, you increase the economic hardship for more ppl than you decrease the economic hardship for. Depending on how income is distributed in the system this effect will be more or less pronounced.
Bringing fairness into the discussion might not be a good idea, after all, if one wants economic policy based on fairness, then I reckon there would be a fair few lefties who would no doubt like a more 'fair' distribution of wealth in the first place.
on Apr 18, 2005
As a small ISV in Belgium - Europe, I tend to play the tax game as well: my wage is considered the minimum wage, but I do have a company car, and I have some extra 'benefits' from my own company.
My company is represented by me, but it is a seperate legal entity. The result is I now 'only' have to pay 30+ % of taxes instead of the usual 50+%. I do have an extra cost in order to represent my 'legal entity', which you might consider +/- 5 %, and it also takes a lot of work to do this...

If you compare that with your ratios, you might actually consider yourself quite lucky.

On the other hand, in our country we do have a very broad social security plan, so we consider medical care/education/retirement wage a common right here. The biggest problem with our system is that a lot of people earn only a minimal wage officially, while working for a boss, so they have to pay approx. 10% taxes, but they do a lot of undeclared hours, for which they don't pay any taxes at all...

So, raising the tax rate might have some advantages, but the more you will raise taxes, the more people will try to avoid it. After all, (allmost) everybody wants to follow the road which has the least resistance.
on Apr 18, 2005

Hmm progressive tax systems are used because those with more money also have a lower marginal utility for the money they have. By removing progressivity from the system, you increase the economic hardship for more ppl than you decrease the economic hardship for. Depending on how income is distributed in the system this effect will be more or less pronounced.
Bringing fairness into the discussion might not be a good idea, after all, if one wants economic policy based on fairness, then I reckon there would be a fair few lefties who would no doubt like a more 'fair' distribution of wealth in the first place.

I support progressive taxation -- to a point.  When tax money has moved beyond being used to provide essential services into basically just providing money for other people then the government needs to be brought under control. 

It is not the role of the federal government to act as a charity. There are more efficient means for that.  But cynical politicians have long mastered the art of looking "compassionate" by spending other people's money. And unfortunately, we now have gullible people who have bought into this to the point where they think we need to take even more of people's money so that we can continue to hand out increasing amounts of goodies to people who haven't earned it.

I'd feel a lot better about my taxes if I was getting my money's worth.  The roads here in Michigan are a joke. They're awful.  The schools are not terribly good either.  The court system is out of control with long waits, excessive red tape (requiring expensive lawyers to wade through) and judges who often seem to see themselves as kings instead of interpreters of the law.  There are not enough policemen still, especially in inner-cities.   I could think of a lot more basic things the government is doing a pretty lousy job at (state and federal) but you get the idea.

on Apr 20, 2005
Draginol,

Your assumption about a teacher's workload is misinformed or poorly represented. Extrapolating your Herculean burden in comparison to it is an error compounded with interest (pun intended).

Heydre

on Apr 21, 2005
what are these services that the goverment is giving away?
Medicare? Public Assistance?
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