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September 08, 2008

More for tax money

Republicans who believe in “small government” (which won’t be able to regulate their money-making tactics) should match their small government with small taxes — say a 90 percent tax cut.

No more “small government” — and a paltry 10 percent tax cut — over 10 years. Most Americans pay about 40 percent in federal and state taxes. I want something for my money: education, health care, infrastructure — big, fat social programs.

Bill Doty
Overland Park

Comments

JustAMan

Since 90% of that 40% tax we pay already goes to big fat socialist programs in order to get the additional big fat socialist programs you want plan on paying 80% in taxes. Then we can enjoy the 10% unemployment like Europe and with their average household incomes (pretax) that are 60% of what they are in America. P.S. Don't forget to add about 7% more in sales tax if you spend that money the government lets you keep in your pay check.

devin

Sorry if that sarcastic first sentence confused you, Gary, but I was agreeing with you. I was just attempting to further drive home your point about how few people pay 40% by pointing out that even taxpayers at the highest income levels would still have to be awfully stupid to pay anywhere near 40% in taxes. And stupid people don't generally make high incomes year after year (certain celebrities notwithstanding). Casady made that point much better than I did, though.

Casady

OK, a quick and dirty analysis similar to that I provided last week. First of all, the 6% state tax rate is deductible from the 33% so that shaves 2% off the effective rate right off the bat. Plus, if you are in the marginal 33% rate and are not smart enough to own your primary home and a second home (interest and property tax on both are deductible) and not max out on 401K contributions and reimbursement accounts, you deserve to be taxed at 40%. While my wife and I are in the 28% bracket, our effective rate is somewhere around 10% because we choose to take advantage of as many tax saving opportuinities as possible. Go figure!

Gary

Devin, you'll have to point out to me where I said anything about the marginal rate of any taxpayer.

Be that as it may, families who have a marginal rate of 33% can't be considered rich based solely on that fact (you are confusing income with assets). Add to that a state income tax rate of 6%, and you're very close to the letter writer's 40% threshold. And that only covers income taxes, and does not count other types of taxes, such as sales taxes.

devin

Oh, come on, Gary, why let the truth get in the way of some good complaining? To pay 40% in state and federal taxes, you'd have to be very rich AND live in a very high tax state AND have a terrible accountant. And even then, you wouldn't be taxed that high for long because if you have that much money and are too stupid to hire a good accountant, you won't be rich for long.

You're right, NMMNG, it's ridiculous that hard-working, middle-income Americans don't "qualify" for some of the benefits you talk about. What's more aggravating is when, due to prior health conditions, you don't "qualify" for private health insurance, either. Unfortunately, my wife can't get insurance in the free market, but we're not destitute enough to "qualify" for government-sponsored health insurance. On the bright side, once the cobra benefits run out, and my wife gets really sick again we'll quickly be destitute enough to qualify for government programs. Won't that be great? I guess it could be better if the government would just stay completely out of health care and let people like my wife just die. Yeah, then we'd really be a strong, free nation, wouldn't we?

Gary

"Most Americans pay about 40 percent in federal and state taxes." Not true. A startlingly high percentage of working Americans end up paying little or no income taxes. The burden of taxation is borne overwhelmingly by the top 25% or so of earners.

NoMoreMrNiceGuy

Well if you "qualify" you can get one of those nice Section 8 lofts downtown, full grnats for college, free day care, EBT card, tax free child support, and free BCBS.
But you have to "qualify".
I'll take care on myu own health insurance, thanks.

 
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