Thursday, January 17, 2013

Tax Increase Hypocrisy (The Taxpayer)

This observation has been kicking around in my head for a little while.  What is my (off the cuff) thesis here?  Taxpayers are more than a little hypocritical. 

How, you may ask are taxpayers hypocritical?  The basis is something i have been noticing with increasing frequency over the last few years...  taxpayers seem ok with tax increases - so long as they don't have to pay them.  In other words, they want to tax others - not themselves.  i have seen this phenomenon increasingly in the modern era.  It is highly ethically dubious to allow "the masses" to punitively vote taxes on others.  Basically, that will be how most future tax increases will be "sold" to the public.  Increase taxes on someone else to pay for "benefits" you hope to receive.  In other words, taxation by envy.  Oregon did it, and other states have started to follow suit.  i guess this is one of the reasons i favor a flat tax (with no deductions/credits).   

Around the time of the US debt limit skirmish, there was poll after poll asking how people would prefer to tackle the debt limit issue (and future financial problems).  The result showed that people were generally somewhat (tepidly) supportive of raising taxes.  The problem with all of these polls is that they asked the wrong question.  The real question should have been "would you, personally, approve a tax increase if it would help reduced the debt"?  Or something like that.  One of the problems with the US tax code is that 50% (or greater) of the population pay no (or negative taxes). 

If John or Jane Q Citizen want to donate money to the government to help service the debt (it is harder with the current non-callabel setup), they can go for that - good for them.  However, i take offense to John Q Citizen wanting to increase taxes on everyone. 

Take Warren Buffet for example, he seems to be constantly beating the drum of increase the taxes on the "rich" (whatever that is).  Is he out there selling shares of Berkshire Hathaway to pay the US Government money?  i think not.  No, he wants to increase taxes everyone in that demographic.  Just because there are tax loopholes/deductions doesn't mean that he has to take them.  Warren, if you don't think you are paying your fair share, nothing is stopping you from "donating" the difference.  Put up or shut up.

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