My wife will probably get grumpy at me for hacking into her blog, but after reading
THIS article I could not resist. I promise I will try to post something a little more "fun" this weekend.
It has happened time and time again; it happened quite often this last year here in Oregon when the people voted to raise the tax rate on those making over $250,000 from 9% to 11%. What is it you ask? Some dope head says that it is time for the rich to "pay their fair share" of income taxes. As a tax professional, I have to laugh.
This to me indicates that the person who says this has no idea of how the tax code works, they have no idea what happens on their own income tax return, and there is a good chance that they didn't pay a dime on their last federal income tax return.
When I hear someone say that it is time for the rich to "pay their fair share" at times I have tried to explain that a good portion (about 47% according to the article above) of people pay no federal income taxes. I then try to explain how it works, their eyes glass over, and I know they didn't understand a word I just said. Which, by the way is understandable.
The article above spells it our quite well.
"But income tax rates were lowered at every income level. the changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.
Here's how they did it, according to
Deloitte Tax:
The family was entitled to a standard deduction of $11,000 and four personal exemptions of $3,650 a piece, leaving a taxable income $24,000. The federal income tax on $24,000 is $2,769.
With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly.
The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax."
There you have it. In this scenario, the family of four did not pay a dime in income taxes; in fact, they made $31 on the backs of those who did. But, let's call a spade a spade. That family didn't make $31; they received $31 of welfare. What happens when the family of four becomes a family of six? What happens when the family of four makes less than $50,000? THAT FAMILY RECEIVES EVEN MORE THAN $31 when they file their income tax return. In fact, families who qualify for the earned income credit can receive more than $5,000 on the backs of hard working Americans who do make enough money to pay income taxes.
Do I hate those people who don't pay a dime in income taxes? No. If I did, I would have to hate myself. I do have to admit that Jamie and I did not pay a dime in federal income taxes in 2009. If the income tax law required it, I would gladly pay. In fact, while I was going to school and working part-time, we qualified for the earned income credit. One day however, I hope to be in the position where I am one of those that some dope head thinks is not paying his "fair share" of taxes.
The truth is that while a great portion of American households don't pay a dime in income taxes we enjoy all the benefits that this country provides. We drive on mostly "good" roads, and benefit from the security that our armed forces provide. But in my view, we who don't pay income taxes are not paying our "fair share".
Everyone of us born in this great country has the opportunity to do great things. Each of us in "created equal....endowed by [our] Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness." Did you read that? We are created equal.....after that it is up to us to determine where we will end up.
Let me
give this challenge to everyone. Take a look at your tax return. If you filed Form 1040, is line 72 greater than line 61? If you filed Form 1040A, is line 45 greater than line 38? If so, congratulations, you and I received welfare from the federal government in the form of a "Tax Refund"
Now, look forward 5 years from now. What are we doing to make it so that we are not receiving this welfare from the federal government in the future? What are we doing to ensure that we are paying our "fair share" of income tax? If we still see ourselves in the
same position that we are in today, maybe it is time to alter our course. This country gives everyone the opportunity to become someone that the dope head loves to criticize. We may not be able to do it by "being what we want to be when we grow up", but it is
OUR choice.