Posted on 04/14/2010 3:12:04 AM PDT by Scanian
Nearly half of American tax filers didn't have to pay any federal income tax last year. But Americans -- especially New Yorkers -- shouldn't enjoy the free ride. Soon enough, everybody will pay for the higher spending that Washington's "generosity" encourages. And thanks to Washington, we'll be paying for higher state and local spending at the same time, too.
Just a decade ago, two-thirds of American tax filers still paid into the tax system. But both Democrats and Republicans have spent the last quarter-century inventing and expanding all kinds of voter-friendly tax breaks. Easy-to-use tax software has helped people get every dollar -- something that was once less common, because it simply wasn't worth the bother.
(Excerpt) Read more at nypost.com ...
I thought “soaking the rich” clobbered us because the definition of “rich” tends to be very fluid. I remember when Bill Clinton raised taxes someone was “rich” if they made $30k a year or more.
That is just another way to "soak the rich"!
Not only are the lazy demanding that we feed, them, but we also have to lift the fork and put the food in their mouths!
Ask Marylanders how soaking the rich is working for them. The State and county budgets have gone to hell since most of the millionaires left, mainly for the tax-friendlier haven of VA. Yay!
why soaking the rich doesn’t work:
if you have ten taxpayers, and one pays $91 and the rest all pay $1, if that $91 guy leaves, the other nine are facing huge increases, right? so it is in your interest to keep that $91 guy around - it’s the goose that lays the golden egg.
why lowering taxes on the rich works:
if you have an asset who’s tax liability is $100, it is worth it to pay $50 to shield it from taxes. the government gets nothing on it. however, if the government taxes that item at $40, then it is no longer worth $50 to shield it, and the government gets $40 more than it used to - revenues rise.
and when revenues rise, the tax burdens become lower on everybody else, and/or services provided by the government increase.
The problem is that the “rich” are our nation’s employers and investors-functionally the job providers. The thesis of this very good article is that taxes will eventually have to go up on the rest of us, true, but the first casualty of high tax on the “rich” is that the employers don’t employ and the investors don’t invest.
I had the discussion the other day with my spouse - I cannot point to a single good or service that I receive from leviathan for my money. Even border security is a joke. State and local, maybe - but minimal. The feds? I receive nothing but a hard time. Not that I want anything, except the ability to exercise liberty and keep what I work for.
Until we institute real change, I'm not holding my breath there..
>>”paid their fair share”<<
Robbing Peter to pay Paul is plenty fair — if you’re Paul.
“if you have an asset who’s tax liability is $100, it is worth it to pay $50 to shield it from taxes. the government gets nothing on it. however, if the government taxes that item at $40, then it is no longer worth $50 to shield it, and the government gets $40 more than it used to - revenues rise.
and when revenues rise, the tax burdens become lower on everybody else, and/or services provided by the government increase.”
Exactly!
As the number of people not paying income taxes increases, we need to more forcefully make the case that governmental revenue will go down reducing funding for government programs. Tax increases also increase unemployment as businesses are forced to cut payrolls and salaries to retain profit margins.
Many conservatives are pessimistic that once the non-income tax payers exceed 50%, there will be no constituency or incentive to reduce taxes. However, a strong self-interest among non or low income tax payers exists to maintain government programs and increase private employment. We must make this case boldly and often.
The Laffer curve is not that complicated. It can be explained to the uninformed. But don’t waste you time on Marxist ideologues.
IMHO everybody ought to pay taxes. absolutely everybody. and everybody ought to pay the same percentage of income. that way the rich pay more, the poor pay less, and everybody has a stake in keepping spending low.
Three letters A-M-T.
I’m far from rich but DH and I make a decent income. I had to pay 6 figures in income tax this year (and I don’t make THAT much) Thanks to the money I sent to uncle sam, I can’t afford someone to clean my house or a lawn service. There will be no new cars for quite a while. Does this hurt me? not much. But ask the lawn service, the house cleaners and the car industry how it works for them....
New Jersey has the same complaint.
A lower flat tax would increase revenue and private sector prosperity. I also agree with you that the poor would have a financial incentive to keep taxes and spending low. Not paying taxes also poses a moral hazard. It breeds entitlement and avoidance of responsibility.
But so much for philosophy and reason. We gave those up a while ago. I'm just a radical extremist. Ignore me. Government needs our money to buy our votes, to protect us from ourselves, and to burn far more inefficiently that the private sector ever could (despite the small benefits of econoies of scale).
(My pipe dream candidate: Flat tax of 20% for all earning above $30k/yr... to be reduced by 1% every year until there are no more income taxes. No more IRS, no more hours of stress over W-2's and 1040 forms - 11 seconds with a wristwatch calculator is all you need, unless you have significant deductions- and no more quasi-slavery. Gives the system 20 years to reduce budgets, create other taxes, and adjust to the new system. Ah, to dream.)
question: why eliminate taxes for those earning less than 30K? if they’re entitled to equal justice under the law, shouldn’t they pay the same percentage of their income in taxes as everyone else?
It really is disgusting how those of us who work hard to better ourselves are used as the bogymen by the race baiters and class envy specialists.
Robbing Peter to pay Paul always gets Paul’s vote! < /cliche >
The rich are rich for a reason. Most of them are smart, disciplined, and fully capable of doing cost analysis of a no-win situation. The minute you go after them, they simply move their base of operations to a friendlier environment. The solution to overcoming the productive members of society and removing their ability to do this is the dreaded U.N. desired global tax. Highly leveraged governments would love to box everyone into a system they cannot escape.
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