Taxes
April 2007
 
Go To Comments
                                                                                      Some Statistics

    I have compiled the following numbers from various articles I have read, but the bulk of the information comes from the Congressional Joint Committee on Taxes and the Congressional Budget Office.  You should draw your own conclusions as to what they mean, but also realize that this is your money that the government and the politicians are spending.

The top 2% of wage earners, those making over $200K, pay 53.7% of taxes
Those earning between $100K - $200K pay 28.3% of taxes

The poorest 40% of wage earners pay no taxes

In 2005, tax deductions for mortgages and state & local taxes  totaled $62 billion.  Of that  72% went to those whose income was below $200K.

In 2005, 1.3% of those earning $50 - 100K were subject to the Alternative Minimum Tax.  In 2007, that number will increase to 42.8%.

77 million "baby boomer" retirees will be eligible for Social Security and Medicare over the next decade, but our politicians have done nothing to prepare for this entitlement surge, absolutely nothing!!

The new budget proposal in congress beginning in 2008 and forecast for the next five years will generate a tax increase of $400 billion.
If the "Bush Tax Cuts"  expire in 2010, here are some of the taxes that will be increased:

The child tax credit will be halved from $1000 down to $500.
The low 10% tax bracket will increase to 15%, causing 5 million more poor families to pay taxes.
The marriage penalty relief will be eliminated raising taxes for 23 million people by $466.


The historical average of federal tax receipts to Gross Domestic Product over the past 40 years has been 18.3%
Despite the "Bush Tax Cuts", that rate, which went to a low of 16.3% in 2004, has gone back up to 17.6% in 2005, 18.4% in 2006, and will be 18.6% in 2007.

Our government is hardly broke.  In the last fiscal year computed the Feds took in $2.4 trillion, of which $1.04 trillion was from personal income taxes.  Do they really need more of our money to waste? 
        
" of the People, by the People, for the People" 
Would it not be better to simplify the system of taxation rather than spread it over such a variety of subjects and pass through so many hands?
THOMAS JEFFERSON
 
  In any discussion of taxes, a few generalizations are usually accurate.  Most Americans feel that everyone should pay their fair share in taxes to run the nation, and most people think taxes are too high or high enough.  More importantly, most people feel that if the government doesn't have enough money, it should cut spending. 

  If you have ever tried to have a discussion about taxes with a friend, you know how quickly it becomes more confusing and less edifying.  In the end, everyone gets angry.  Although we are all unhappy with the system, we seem powerless to do anything about it, and a lot of people feel we should change to a much simpler system like a flat tax, a value added tax, or a so-called "fair tax".  That seems to be the one other thing most of us agree on.

  The reality of the tax code can best be described as insane.  Over 100,000 individuals work for the IRS, more than the combined total of the EPA, OSHA, and the FDA.  The tax code is contained in 66,000 pages and there are as many as 526 separate forms that can be used.  60% of us use a professional to prepare our tax return, and the estimated time devoted to this endeavor is 6.4 billion hours.  I did say that this whole thing is insane.

   Let me give you two quotes that sum up my feelings about this whole situtation.

     1. Thomas Jefferson - " To take from one, because it is thought his own industry... has acquired too much, in order to spare to others who... have not exercised equal industry and skill, is to violate the first principle of association, the guarantee to everyone the free exercise of his industry and the fruits acquired by it."
     2. Calvin Coolidge - " The wise and correct course to follow in taxation is not to destroy those who have already secured success, but to create conditions under which everyone will have a better chance to be successful."

   I believe that both of these statements, when properly applied, set a good course for how we should implement a tax program.  Be assured that I in no way am saying that the poor and needy are to be tossed aside due to lack of skill.  Basic welfare and programs for the needy are a moral responsibility that we as a nation must commit to.  Nonetheless, we need a more logical and reasonable tax code that takes care of the needs of the nation while at the same time encourages work and savings.  The less the government takes the less control it has.  That means more freedom for us, the ultimate goal.

   An overhaul of the tax system should be implemented that would contain the following principles.  First, we should eliminate all deductions.  Secondly, every worker should pay their own taxes, whether married or single.  Third, we should create a three tier system based upon the following points, with the exact numbers subject to review.  Also, corporate and state income taxes would also be adjusted to a similar scale.
  
     1.  The first $20,000 would be totally tax exempt.  This could be construed as the absolute bottom poverty level.
     2.  The next $20,000 of income would be taxed at 5%.  This would translate into a tax amount of $1,000 for a person earning $40,000.
     3.  All income over $40,000 would be taxed at 10%.

     It seems, like everything else the government does, that complicating and confusing rules are constantly put in place to continually adjust for imperfections and miscalculations of previous ones.  Another aspect of this perpetual confusion is that the politicans like to keep things complicated so as to hide what it is they are actually doing.  I believe both parties have been engaged in this type of chicanery for exactly this reason.  The less we know, the more power they accrue to themselves, and we gradually lose more and more freedom.  If this is not the case, why then won't the politicians do the obvious and simplify the tax code?

    You and I have to live on the salary we earn, so why shouldn't the government live within its means as well?    The politicians love to have money to spend, especially when they do not earn it.  We, as citizens, keep expecting the government to do more and more, which makes it easy for the politicians to keep spending.  They buy us off with their pork barrell spending, and cater to the lobbyists who throw around money to buy influence and gain various big government spending contracts.  Is it any wonder that corruption flourishes on Capital Hill?  The solution is a simplified and fair tax system where the government cannot spend endlessly without accountability.

    Since both parties are complicit and heavily invested in keeping the status quo, it is imperative that we take the opportunity in this next election to begin a restoration of Constitutional principles and the rule of law.  We need to hold the partisan politicians to accountabe for their actions, an acountability that they are able to avoid due to the virtual lock on power they have created.  Having convinced us that they are the only choice, they sacrifice leadership at the altar of power and influence.

   The founding fathers of this great nation granted us the responsibility and authority to rule ourselves, but we have given over that inheritance to a group of elites who do as they want and disregard the will of the people and the needs of the nation.  If we vote for any Democrat or Republican in this upcoming presidential election, we will be granting these same two parties continued partisan power.  We must break this cycle of partisanship by electing someone not of either party who will stand up against them for the rights and the will of the people.  It is a time of choosing, and we must make the correct choice.  That is our job and the task before us!

 
Return To Home
       Joe  Oliva  For  President  2008