Quote of the Day: Fiscal Cliff Taxes

by TKOEd • Tuesday, Dec 11, 2012 • no responses - be the first

Derek Thompson:

When President Obama says he’s going to raise the top marginal tax rate, the key words there are “top” and “marginal.” According to the president’s plan, every dollar under $250,000 of earned income will enjoy the same tax cut it has today. He’s only pledged to raise taxes on income above that level by about 5%. So, if you make $251,000 next year, your tax bill wouldn’t go up by $12,000. It would go up by $50. A steak dinner, not a small car.

Thompson’s post is titled, Rich People Who Don’t Understand Taxes Should Be Told So. I completely agree with that statement, but they should only be a starting point because of their outsized influence in our political system. We need as many people as possible to understand this. It’s mind-boggling the number of people who don’t understand or possible feign ignorance at our marginal income tax rate structure. Including many in the press. We got to do better.

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The Big Story: Taxes

by TKOEd • Friday, Nov 30, 2012 • no responses - be the first

Ms. Thole, like many in Belleville, is also convinced that governments could avoid raising taxes by adopting more frugal habits.

“There’s some days we stay home and we eat peanut butter,” she said.

What would she like governments to cut?

“I really like it when they cut the weeds along the highway,” she said. “I like it when there’s good roads to drive on. The schools, I don’t know, I don’t want to pull back from the schools. I don’t have the answer of where to pull back.

“I want the state parks to stay open. I want, I want, I want. I want Big Bird. I think it’s beautiful. What don’t I want? I don’t know.”

The above is a perfect example of how many people view taxes in America. They believe that government is spending too much. On what? They don’t know, but they’re sure it’s something. A bunch of things even. Just not any of the things that they like or want or need. People who drive think we spend too much on public transit, people who take public transit think we spend too much on roads (we do, but I digress). Frequently, people think too little money is being on spent on them. “Where’s all this money going?” they say to themselves. The answer is, everywhere. Our local, state, and federal governments do much more than most people comprehend, and it costs much more than they think. Would Ms. Thole want more holistic, and sensible crime policy if she knew that corrections is the 2nd largest state expenditure after Medicaid?:

one out of every 15 state dollars is spent on corrections in this country. Not coincidentally, one in 31 American adults are adrift in this bloated corrections matrix, stretching resources razor thin. Now swing the recession sledgehammer, and you have a nationwide crisis requiring states to come up with creative solutions to meet enormous budget deficits.

There’s something we could cut. Because you know, drug addicts should get treatment not go to jail. Especially when treatment is a far cheaper option (PDF):

…the average cost of placing a participant in DTAP, including the costs of residential treatment, vocational training an support services was $32,974—half the average cost of $64,338 if the participant had been sent to serve the average term of imprisonment for participants, 25 months.

Sometimes my mind is boggled by this stuff, just about everyone wants more services, but many don’t expect to pay more for those services. Nowhere else do you find that attitude except when it comes to the government. No one would walk into a spa for a massage, and then expect to a facial as well for the same price, but everyone wants better schools, and lower property taxes.

Then we have the people who think poor folks are ballin’ out:

Mr. Siemens does have a concern about fairness. He believes that lower-income households are not paying enough in taxes.

“By any measure, the wealthy are still paying a disproportionate amount of their income in taxes,” he said. “Is that fair or not fair? I don’t know, but I have an issue with the dramatic reduction of taxes at the low end because I think everybody needs some skin in the game.”

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The share of Americans who think lower-income households pay too little in taxes increased to 24 percent in 2012 from 8 percent in 1992, according to Gallup.

What a “skin in the game” is going to make poor people do, I don’t know. But clearly those poor people have it good so to make things more “fair”, they should pay more. Because, “some skin” will make you do stuff (*wink*) or something. Meanwhile, Mr. Siemens’ state doesn’t have a progressive tax rate. Which means that the poor are more than paying their fair share in state taxes:

…Illinois, like most states, takes a larger share of income from those who make less. Illinois households earning less than $25,000 a year on average paid 14.3 percent of income in state and local taxes in 2010, while those earning more than $200,000 paid 9.4 percent

We have a couple of people in this article who represent a powerful sentiment across large swaths of America: The idea that rich people work harder than less well off folks, and that’s why they’re rich. Now hard work is 9/10 a prerequisite for wealth, but I’d say it’s a prerequisite for poverty as well. Growing up, I knew many, many people who lived below the federal poverty line (which @ 23 grand for a family of 4 is extremely low). None of them were headed by people who didn’t work. The working poor exist, and education seems like the key to higher wages, and ability to lift oneself out of poverty. Meanwhile California is spending almost a year of room & board at Harvard on incarcerating people for the same length of time. All the while cutting back on their own awesome public colleges & universities. This is perverse. This is a America. Where we lock up drug users, and states like S.C. increase prison spending by %500 only to see recidivism rates increase.But I guess things will get better by admiring the rich, and making poor people pay more.

 

 

 

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Once Upon A Time: McCain on Taxes

by TKOEd • Friday, Oct 24, 2008 • no responses - be the first

Shout out to Yglesias for this one:

McCain is an unbelievable hypocrite. He decided months ago the only thing that matter was winning the presidency. There many reasons not to vote for John S. McCain but one of the biggest has got to be that he will be beholden to the right wing base if he wins. He has already mortgaged his biggest strength, was his maverick persona, in an attempt to win. Why should we believe he will buck the base if they put him in power? Even if you believe McCain was really once a man of principle there is no sight of that man anymore. He’s run a dirty campaign, full of ugly smears & outright lies. He choice for veep is not only unqualified but from also a crazy Christian. A member of the agents of intolerance he once railed against.

This video gave me a feeling of sadness. I remember thinking back in 2000 things would be ok if McCain became president. The video above is the man I remember. A man not ideologically rigid, a man not willing to win at all costs and, most importantly to me, a man of common sense. I do not think I would have not have supported McCain against Obama even if he still seemed like that man in the video but I would have respect for him. I would not have the large fear him becoming president, as I do now.

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