It's Only Fair!!!

Have you ever known government to do anything right? I walked into the Clerk of Courts Title office this morning and got a very bored “Can I help you?” from one of the clerks between her eating a donut and drinking a cup of coffee. She looked a little pained, but she got the job done in relatively short order and managed a smile when I left.

I know many folks who work in government, and are fine, hard working people who try to do their job as best they can. But by its nature, government is inefficient. In an effort to do a good job, it promulgates rules on top of rules in order to protect itself and the people that work for it from getting into trouble. That’s not good or bad…it just is. That is why I view with trepidation any expanse of government. And make no mistake about it, government is expanding. Obama’s stimulus package, which I support to a degree, will be mind blowing.

How we pay for it is a concern. Here are some eye opening statistics.

41% of the US population pays no tax. In 2006, out of 136 million tax returns filed, 43.3 million of returns had no tax liability. There are 15 million households that file no tax return at all. 2/3 of single filers or singles who file as heads of households pay no tax at all. Compare that with married taxpayers who file 40% of the returns, and pay 75% of the nation’s tax burden. It is called pyramiding income.

Here are some interesting statistics. The states with highest percentage rate of non-taxpayers are Mississippi, Louisiana, Arkansas, New Mexico, and Alabama. The states with highest percentage rate of taxpayers are Alaska, Massachusetts, Connecticut, New Hampshire, and Minnesota. As a percentage of its population, more Ohio citizens pay federal taxes than New York, Pennsylvania, Nevada, Michigan and Maine.

Now add to that the tax proposed “cuts’ which go to those people who don’t pay any federal taxes. Of course, the nanny government argues, they may not pay income tax, but they pay payroll taxes and social security and Medicare. Boo hoo. Boo hoo. Boo hoo.

The figures that really interest me are how the tax burden is shared among the population. The wealthiest 1% of Americans earns 19% of the nation’s income and pay 37% of the collected taxes. The top 10% of wealthy Americans pay 68% of the total taxes paid. The bottom 50% of Americans earn 13% of the country’s income and pay 3% of the total tax paid.

Here is the conclusion. If you are paying federal income tax, you are rich. Remember that when you hear the Democratic mantra about the Bush tax cuts that benefited the wealthiest Americans. When Obama says he will give a tax cut to 95% of all Americans, it is a mathematical impossibility to do that as 41% pay no federal tax. I will guarantee you that if Obama follows through on his promise, and you are already paying federal income tax, you will get a tax hike, not a tax cut.

How long can this country afford to support this type of tax structure? Which part of the equation would you like to be on…the receiving end or the paying end?

But here’s the good news. If you make over $28,000.00/year, you are rich. So when the spending starts, and the taxes start to rise….you can have peace in your heart knowing that you are among America’s anointed, and you need to share your prosperity. It’s only fair.