Post-Filing Tax Thoughts

Just finished up my tax returns. Feeling grouchy, as I always do when I sign on the bottom line.

So many pieces of paper to riffle through. So many figures to enter. Doubts at some points that I’m putting the right numbers into the right places. Anxieties about potential penalties and audits.

And frankly, the amount I owe makes me feel somehow deprived. But I know this is irrational. Many people apparently don’t.

Every year, long about this time, the Tax Foundation announces Tax Freedom Day — the day when, according to its calculations, workers stop working for the government, i.e., have earned enough to pay all their taxes.

And every year, long about this time, the Center on Budget and Policy Priorities explains why the Tax Foundation’s figures are misleading.

But the whole notion of Tax Freedom Day is misleading because the only people who are working for the government during the time they’re earning what they’ll owe in taxes are government employees.

Our taxes aren’t feeding some abstract entity. They’re paying for programs and services we want — public education, police and fire departments, courts, libraries, parks, highways, reasonable assurance that the plane we’re on won’t blow up or crash into another, breathable air, safe food and drinking water, defense against threats to our national security, a modicum of economic security in our old age, a safety net that protects us and our less fortunate neighbors….

I know I’m leaving out a lot of things we want from our public sector. But point, I hope, is made.

Two things got me started on all this. One is the intense hostility to taxes that we see at both federal and state levels. And I’m not talking about Tea Partiers alone.

The other is how relatively easy it is for me to champion higher income tax rates, fewer credits, loophole closers and the like. Because such reforms would have little or no affect on me.

Let’s say I made $84.5 million last year, like the head of Viacom’s media empire. (Yes, let’s!) Would I still feel that the tax code should be reformed that I pay my fair share?

I’d like to think so. But I’ve just done every legal thing I could to reduce my tax liabilities. And I recall how cheery I used to feel when the home mortgage interest deduction — one of the costliest tax breaks in the federal code — reduced them significantly.

Still, I’d like to see a federal deficit reduction plan that restores more of the pre-Bush tax brackets than just the top two — all that President Obama still seems willing to target.

Restoring equal taxation of investment and employment income would be a good idea too.

Here in the District, I’d back a tax reform plan that put a new bracket low enough to capture more of my income and a property tax more in line with what our Virginia and Maryland neighbors pay.

I know I’d grumble at tax time. So I guess would most people fortunate enough to have a livable income and homes we own.

But a goodly number of grumblers have to get over the view that we can have everything we want — lower deficit, no tax increases that would touch our wallets and sufficient spending on everything we care about.

And those of us who advocate for shared prosperity and economic security — for ourselves, our neighbors and the next generation — have to be willing to put our money where our mouth is.

Yours truly included.

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