The Rich, Taxes, and Why it Just Doesn’t Matter
The recent “cone of silence” presidential debate raised the question of what income level constitutes being “rich” in the U.S. The problem with that question is that it’s a regional issue, not a national one. The cost of living in New York City is a little bit different than the cost of living in Boise, Idaho, for example. Not that both aren’t wonderful cities in their own right, but the costs to dwell in each are vastly different and the personal income required to live well within each differs greatly.
So someone making 100K per year in Boise might be living the American Dream and be well on their way to a comfortable retirement, while someone making 100K in NYC might be struggling to pay their monthly rent with no savings in sight.
And the idea of more or less taxes and who “should” be paying them gets rolled into this ridiculous concept of who is actually “rich.” But the issue is always the same — we need more tax dollars to help fund the government that is serving and supporting our nation. Otherwise, important programs will suffer. Education will suffer. Social Security will be in jeopardy. MediCare and other government aid programs will be under-funded…
The problem I have is that we never seem to be having the conversation about where all of the money goes that we’re already paying in taxes. The US Government collected roughly 2.5 trillion in tax revenue in 2007 and roughly 45% of that was from individual income taxes. That’s a staggering number for “annual” tax revenues. And yet an ever-present political talking point is always who should be paying “more” in taxes and why (or why not).
I honestly don’t see how any real progress can be made with regard to the financial health of the country without first determining where all of the money we currently have is going. Does anyone really have any idea where 2.5 trillion dollars goes over the course of one year? Is anyone accountable for trying to spend tax dollars wisely? What about an independent audit of government tax spending that would be readily available to the general public on a yearly basis? Does the average American paying 20+% of her paycheck to the government (federal, state and local) really receive anything close to a legitimate return on that investment in terms of services rendered?
I think it would be incredibly naive to think that even if we doubled the current tax revenues to 5 trillion dollars for 2008, that any real change would happen on the level of the average citizen. Do you really think that more money will lead to more services for people that need them? Will inner city schools improve? Will crime be reduced? Will people have more access to education and jobs? Very unlikely. Would new levels of bureaucracy and administrative oversight emerge? Absolutely.
We all know that the government is horribly inefficient and wasteful, yet the conversation always seems to be about trying to generate more tax revenue and which groups we should target to do so. Until we start to address the real problems that face us, the insignificant changes we make simply won’t matter. It won’t matter if John McCain or Barack Obama wins the White House. The net gain/loss for the average American will be negligible four years from now. It doesn’t matter if we win the war in Iraq or if we find an unlimited supply of oil under a rock off the coast of Texas. Our government is not currently built to operate efficiently or spend our money wisely. Its intent is not to provide a better life for its citizens. It is designed to ensure that your money remains available to keep the government in control.
Until the people demand changes to the fundamental role of our government, very little can happen that will make a difference.
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2 Responses to “The Rich, Taxes, and Why it Just Doesn’t Matter”
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We are over taxed!
Disgusting
Enough!
2headedguy
http://www.taxesexposed.com
Is there really anythig we can do to correct this problem? I think so…And the best way is to get involved with your local, state, and federal government.