First off, here's the article that got me pondering:
http://www.dailyfinance.com/2011/10/25/surprise-heres-where-your-tax-dollars-go/
I believe the opinion expressed in it matches the average mindset of those who consider themselves politically informed. Let's go straight to the website mentioned, that is supposed to give you straight facts on where your tax money goes: The White House!
http://www.whitehouse.gov/issues/taxes/tax-receipt
Look ! You can enter your income and other data and receive a detailed receipt showing how much you pay and where your money is spent. If you don't have your own data handy, you can choose from a dropdown box.Let's see, the highest income choice offered is $80,000, married with 2 kids.
When you look at your "receipt", you may come to the (desired) conclusion that everything is fine with the world. You may feel that you're getting a decent value in exchange for your taxes.The President himself tells you that you're paying less than 12.5% of your income for retirement and medical care and all the other things that only the government can provide. Great deal - and if it were true, I might want to get in on it.
Alas, we'll have to make some adjustments:
1. Your social security tax is not $6,120, but double that amount: $12,240. The other half has been deliberately hidden from your view by subscribing to the myth that you employer pays that share. That amounts to a falsehood, a deception.
Your sensible employer will pay the market value for your efforts, then deduct all the taxes, fees and levies it needs to remit to the government, and pay the balance to you. It does not matter what names those levies were given.
2. You left your credit card on the kitchen table, and while you were out, the feds decided to not only increase your credit limit, but also to charge more than $20,000 to it. Yes, that is your share of the debt that the federal government incurred in your and your childrens and future generations name, to fund current operations. That too, is a tax. You don't get the bill right now, but you know that you are going to get it !
Suddenly, that deal doesn't look quite as enticing as before. Instead of paying $9,983, your bill comes to $36,103. Ahh, but wait, there's more: A family of 4 represents a "preferred customer" to the IRS. What happens when your kids move out? Your bill increases from $36,104 to $40,540.
Should you become single, your bill increases further to $45,990.
Good, now that only covers the income tax and social security taxes. Then there are the excise taxes like gas, tobacco, alcohol and fees too numerous to mention.
Ok, you think that I'm being unfair by imposing the cost of the debt on the middle class. You think, that the "rich" should and will pay that part. Unfortunately, you can kill the rich, you can eat the rich, you can take all of their property, but you can never tax them! You see, the rich don't need income, like the rest of us. They have all they need and paying taxes to them becomes voluntary. They can afford the best lobbyists, the best tax attorneys, they know which country offers them the best deal. What is more, if you raise tax rates, even ordinary people will work less and rather enjoy life more than paying taxes.
What happened to the last grand scheme to "force" the rich to pay their fair share? Do you remember it? Right, the AMT (alternative minimum tax). Who's paying it now? Right, the middle class!
Back to the introduction and the article that got me rolling:. Invariably, when taxes are discussed, you will hear: Schools, roads, firefighters, courts and the police.
These functions, though, are paid for by local and state taxes! (90% of them)
Let me conclude this dismal venture into reality by mentioning that this families share of the federal debt now comes to over $200,000. Recent trend: Increasing by about 10% every year!
PS: Here's another link to a video that sheds more light on the topic of "taxing the rich":
http://www.youtube.com/watch?v=661pi6K-8WQ&feature=share
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