What if we lowered taxes? Wouldn't we all benefit from giving less to the government and spending our money on what we need most?
For example, what would happen if we lowered taxes across the entire socio-economic spectrum, say by $4000 per household? If this were 2004 (see the chart below), that would mean that the average household in the bottom 20% wouldn't pay taxes at all. Wouldn't those poor folk suddenly be able to pay for health care? Wouldn't the middle-class be able to put a little more money towards their mortgage or retirement? Wouldn't the rich be able to buy that much needed new wardrobe (which in turn helps a bunch of poor people who work for the clothing manufacturer)?
However, if this hypothetical scenario actually took effect, I wonder if each group would use the additional money for what they needed most (like health care and a mortgage payment)? Or would most of the money go to waste? And if that money did go to waste, should the rest of society have to bear the financial burden for those that squandered their govenment bonus so everyone could have health care and college tuition?
Friday, July 18, 2008
Taxes: Round 3
Subscribe to:
Post Comments (Atom)
15 comments:
(I erased that last comment. It was full of grammatic errors)
The taxes people pay right now all go towards something, so if everyone suddenly paid less wouldn't they have to make up for it one way or another, like paying tuition for public schools or tolls to use city streets? It's not like we'd suddenly have $4,000 extra dollars, right? I'm trying to wrap my head around it. I'd rather pay small amounts of taxes with each paycheck than large chunks of money all at once when I need something that taxes would normally pay for.
And I think paying taxes should be like you paying tithing at church. Everyone pays the same percentage. There's no sliding scale. It may not be the same dollar amount, but proportionally, it's the same financial sacrifice.
Finally someone commented. Apparently people have more to say about water or Dr. Pepper than Taxes.
A couple of comments:
First, you are right in a sense. If the govenment spends less on services they provide and gives us our money back, that has a couple of potential implications. Either it forces them to become more efficient (providing the same services with less budget), or it forces us to seek these services through a private entity (which would undoubtedly be run more efficiently than most govenment organizations). The theory is that either way, we win.
As to your second point, the way I figure it, a flat tax would absolutely favor the wealthy. Right now the poor pay 15% income taxes while the rich pay upwards or 35%. If everyone paid 25% the poor would be in a world of hurt. The only way I see that working is if everybody was exempt on the first 30-40K they earned. But then we're back to a progressive tax.
But I'm no tax expert. So if someone that really understands taxation and govenment spending happens upon this, please enlighten us.
Also, when I get some free time, my next project is to figure out where the $35K each household receives from the government each year is spent on. Anyone have a break-down of where our tax dollars go?
Just did a quick search. Here's one breakdown of govenment spending.
http://www.cbpp.org/4-10-07tax2.htm
I like the link you found. However, we need HP's CEO (Mark Hurd) to become President and I'm sure he'll find a way to cut everything by 50%.
Ok, I take back what I said about everyone paying the same percentage. Rich people should totally pay more!! I don't feel bad at all. They can afford it!
Too late Ashley! No taking it back. : )
By the way, thanks for humoring me and taking the time to comment on such a dry subject as taxes.
I've never seen more waste in ANY entity than government. Because there SEEMS to be an ENDLESS supply of money, there is no incentive to cut back or be more efficient and frugal with the funds. As a teacher I saw TONS of WASTE in education (paying 3 times more for textbooks due to a contract with that company, or buying supplies from companies that are 5 times the price of Wal-mart, and the like)--when everyone automatically thinks more money should be thrown that way. It is RIDICULOUS to think rich people should carry a larger burden simply because they've worked harder to make more $$. I've never seen government be more successful at filling a need than a private company. I think people spend money on what they want to spend money on. Some people are poor simply due to their bad choices. It is not the governments job to shield them from the CONSEQUENCES of their bad choices. On the front page of yesterday's paper it talked all about the bad economy, people struggling, etc....and then the sidebar said there were record breaking sales at the box office for 'The Dark Knight'. People spend money on what they want to spend it on.
How exactly do rich people work 'harder'? People who pick lettuce 12 hours a day in the blazing sun work way harder than any rich man ever has in his life. Poor people aren't lazy, and I think it's insulting that people automatically assume they are. Sorry, but I won't be shedding any tears for rich people who have to pay a lot of taxes. They're still way better off than the majority of people in the world and should stop whining.
I put my comments in 'Taxes Round 1' as to how my family has worked 'hard' to earn our income. In addition, my husband worked 40 hrs a week as a ditch digger & dishwasher while he took a full course load of college classes (which he paid for himself). I admit--he was crazy, but DEFINITELY a hard worker. Now if a lettuce picker spends the day working & the evenings in night school, he/she won't be picking lettuce for long...
Texas. It would certainly be nice if everyone had the ability to pick themselves up by the bootstraps. I think some can. I also think we should continue to push for self reliance and good old-fashioned education/work instead of handouts. And in theory I'd like to subscribe to your view of "all it takes is hard work." Practically however, I believe there will always be a segment of society that doesn't view opportunity the same way you do.
First, if the "lettuce picker" went to night school it wouldn't be the same one your husband went to. I presume your husband went to night courses in college, am I correct? Or was he learning english at night?
Second, opportunity starts very early, long before kids start kindergarden or the first grade. Parents who spend time with kids when they are young help them develop confidence and intelligence that helps them once they get to school. Has nothing to do with money, you're right about that. Has everything to do with priorities and time spent with the children. Opportunity starts with parents who give their kids attention and a vision of what they can become. Sometimes kids catch the opportunity and vision without help from parents, but by and large the thing that will break the cycle for most kids is a parent that decides that their kids are going to get an education, work hard and have opportunity.
Most "lettuce workers" didn't have parents that had education and opportunity as a first priority.
Sorry--i always for get to subscribe to comments! I will reply in your latest post.
People who pick lettuce 12 hours a day in the blazing sun work way harder than any rich man ever has in his life.
Ashley, how do you know? A lot of those "rich" men worked their butts off to get rich. I'll agree that just because a man is rich doesn't mean he necessarily worked harder than a man picking lettuce 12 hours a day in the blazing sun, but I definitely will not agree that the lettuce picker works harder than any rich man has a day in his life. That is just as gross of an exaggeration as you claim texastwinstwice's statement that rich men work harder is.
Stephani, you're right. That was an exaggeration. I've just worked with a lot of immigrants and have seen how incredibly hard nearly every one of them has worked and was frustrated by the repeated idea that people are poor because they don't work hard and are lazy. I still find it hard to believe, though that rich people are rich just because they 'worked harder'. Opportunity is everything.
Ashley, I disagree somewhat. We live in a country where everyone has the same opportunities. Most of us go through the same school systems. Discrimination is not the norm, in fact minorities are often given better opportunities becaues they are a minority.
It is not about who works the hardest and it is not about who has better opportunities. It is about who repeatedly makes better choices for themselves or their children throughout their life.
Anyone who grows up in the U.S. can choose to go to school, can choose to study, can choose to take highschool seriously, can choose to apply for, attend and complete college, and can choose job opportunities that pay the rent and health care.
The one thing I will confidently say is that the majority of people who struggle in this life repeatedly make bad choices. Those bad choices usually start at a very early age and continued into adulthood.
Post a Comment