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Sunday, September 16, 2012

Half of Americans pay no taxes


September 16, 2012

Half pay no income taxes

When I first heard this statement a couple of years ago, my initial feelings were of disbelief, quickly followed by anger. That began my search to determine the target for my anger!

Since then I have been repeatedly reminded of this statistic by the media, and far too many emails to even count. Clearly this must seem wrong and unfair to the rest of us who do pay our income taxes. However, the more I studied our economy and logically connected the facts, it became clear who the real culprits were.

Our federal personal income tax system came into existence in 1913. Since then our legislators have tweaked and changed the rules, called tax codes, many times. Both parties have continuously agreed we should have a progressive tax system. This simply means the more income one earns, the higher percentage of it should be paid in taxes. This undoubtedly resulted from our pragmatic leaders being guided by two simple fundamentals: 1. If you want real dough...collect it from those who have the most. And, 2. You can't get blood out of a turnip! So let's not forget almost none of these poorer Americans simply decided not to pay taxes...our lawmakers clearly made that decision for them with the structure of our tax codes.

Who are the non-tax-payers, and why don't they pay taxes? Let's begin by remembering we have close to 25 million American workers and their families either completely without work or terribly underemployed today. Also remember fully one half of the non-income tax payers have household incomes which fall below the official poverty line. Finally, wages have fallen in both real terms and purchasing power over the past several decades.


Do you think the vast majority of these poorer among us deliberately decided to become poor? Don't you think most would prefer to earn wages sufficient to allow them to pay income taxes? Do you think they take great pride in having to rely on public assistance to help keep their families fed, sheltered, and protected? Have you thought about all of the other government taxes they do pay which are actually regressive in nature, in other words, the less one earns the greater proportion goes to pay these other taxes. I'm referring to state income tax, federal payroll tax, sales tax, real estate tax, personal property tax, gasoline tax, excise tax, etc. Can you imagine how much money these folks would have left to provide for their families if income taxes were added to their burden?

I've heard some say these poorer folks just need to pull themselves up by their bootstraps? What if there are no bootstraps in our severely broken economy? Many of these poorer are among our least educated and are caught up in what's called generational poverty. With our current continuing recession, most cannot find a way to escape its pull any more than any of us can escape gravity. Should the more fortunate among us just say, too bad, we made it on our own and you can too?

We should all feel real anger and even shame, because America, in spite of our current economic woes, remains the wealthiest economy in the world by a huge margin. Yet almost half of our workers cannot make enough money to be able to afford to pay federal income taxes.

We must blame the collective leadership of both parties in Washington, DC. Over many decades our elected and appointed leaders have increasingly paid more and more attention to the short-term greed of those who can afford to buy their actions with money and votes. Our legislators have then spent incredible sums of our money in return. This was and is money we could not afford, and our leaders failed to foresee, or simply ignored, the long term consequences of these reckless actions. We, of course, are fully culpable because we just keep voting for the same party and incumbents, election after election...in spite of clear evidence of their collective malfeasance.

So, while it's wrong that so many can't pay income taxes, I hope you will no longer blame the poor, the wealthy, or a single political party. Since our leaders from both sides seem so unwilling to work together to find solutions, it doesn't look as if our economy, wages, and lack of jobs is going to improve much any time soon. When thinking about the plight of the less fortunate among us, the rest of us need to remember that old saying: "There, but for the grace of God, go I". Because the truth is, if not today, it just might be you or your loved ones in this situation in the near future.


These are my opinions. What do you think?

Mike Tower

Please visit:  Citizens Against Politics As Usual

Contact Me:  Mike Tower



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