“In this world nothing can be said to be certain, except death and taxes.”
– Benjamin Franklin
It is tax time again. I have avoided death for seventy years, but like most “middle class” Americans, I have certainly paid my share of taxes.
From the NYT: April 15 has, to put it mildly, a terrible reputation. Tax Day (don’t freak out — you have until Tuesday to file) is a near universally dreaded occasion of financial self-scrutiny, a compulsory rite of adulthood whose rank in the boogeyman taxonomy includes root canals and D.M.V. visits. It sneaks in with the rest of the spring holidays, marring an otherwise celebratory season.
But today, I’m most disturbed, not by having to pay taxes, but rather by: who must pay, and how the tax revenue is spent.
Only 3% on Education? Only 1% on Science and medical research? Only 1% on Natural Resources and Agriculture? No wonder this country is in such turmoil! If I had my way, I would cut the defense budget by 7%, and increase Education by 3%, Science and Medical Research by 3%, and Natural Resources and Agriculture by 1%. I posit that within a generation, the more educated citizenry would then be able to more quickly solve many of our national problems.
None-the-less, revenue from the US tax coffers is used to fund a variety of goods, programs, and services that support the American public and pay interest incurred from borrowing.
Who is being taxed and at what rate?
Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households | |
10% | $0-$11,000 | $0-$22,000 | $0-$15,700 | |
12% | $11,000 to $44,725 | $22,000 to $89,450 | $15,700 to $59,850 | |
22% | $44,725 to $95,375 | $89,450 to $190,750 | $59,850 to $95,350 | |
24% | $95,375 to $182,100 | $190,750 to $364,200 | $95,350 to $182,100 | |
32% | $182,100 to $231,250 | $364,200 to $462,500 | $182,100 to $231,250 | |
35% | $231,250 to $578,125 | $462,500 to $693,750 | $231,250 to $578,100 | |
37% | $578,125 or more | $693,750 or more | $578,100 or more | |
| | | | |
The chart above presents the big picture, but the devil is in the details. It would take volumes to enumerate the many tax deductions and loopholes for the wealthiest among us.
GREED
In 2010, the US Supreme Court by a narrow 5-4 vote ruled in a case entitled
Citizens United v. Federal Election Commission, a controversial decision that reversed century-old campaign finance restrictions and enabled corporations and other outside groups (PACS) to spend unlimited funds on elections. Corporations led by power-seeking billionaires were free to financially support (buy) the politicians and initiatives of their choice. Citizens United stifled democracy, and we now witness historic wealth inequality and a system of government that serves the interests of the wealthy few, and enables politicians to gain and abuse their power.
Sen. Elizabeth Warren, Sen. Bernie Sanders and other Democrats have none-the-less proposed a 2% annual tax on wealth over $50 million, rising to 3% for wealth over $1 billion. Why shouldn’t the very wealthiest among us pay the largest percentage of tax? If I had 50M+, would I miss 1M? Hardly.
Unfortunately, because of Citizens United, Warren's tax proposal has little chance of passing. Our elected officials (pawns of the wealthy) understand who butters their bread.
So here we are. While the rich wield their power, and worry how best to expand their wealth and influence, Rett and I, happily and gratefully, sit here thankful for our pension that provides us with necessities +.
Happy Tax Day!
CPW
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