Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Friday, September 19, 2008

Are taxes patriotic?

In a recent interview, Joe Biden suggested that for Americans who can afford it, paying taxes is a patriotic duty:
The truth of the matter is that we are in trouble. And the people who do not need a new tax cut should be willing, as patriotic Americans, to understand the way to get this economy back up on their feet is to give middle class taxpayers a break.
Is Biden right? Hell yes. It really shouldn't be that controversial, should it? If you love your country, you want it to function well. To function, your country needs money to have a military, build roads, run schools, and police your neighborhood. To get money, it needs your taxes. So do your damn duty.

I can see two reasons why Americans would consider taxes a burden rather than a patriotic duty. First, Republicans have been remarkably successful at framing taxes as "painful," unreasonable, and burdensome (e.g., Bush's "It's your money" slogan and McCain's recent ad). They have largely won the rhetorical battle on this issue.

Second, fiscal conservatives like Andrew Sullivan argue that government doesn't need that much money to fulfill its basic functions, and therefore taxes should be smaller and flatter. (Side note: current Republicans are NOT fiscal conservatives.) He argues that the government's role should be to promote economic efficiency while protecting formal (not substantive) equality. So anything beyond a small flat tax would be burdensome and unfair.

Although that argument is more reasonable, I disagree with it. I'm not an economist, but I just don't see how the numbers would add up under a small, flat tax. The U.S. already has the smallest welfare system among all advanced democracies. We have the smallest government overall, as a % of GDP, among all advanced democracies (144 out of 160 countries, according to one list). We have a roughly half-trillion dollar federal deficit amid a major financial bailout. I'm willing to be convinced otherwise, but what government functions are you going to cut to allow for a small flat tax?

I just don't see how the federal government can perform its basic functions, including having a fairly minimal social safety net, without having progressive taxation. It's not a matter of trying to achieve some utopian "substantive equality," but simply ensuring that extreme inequality doesn't prevent some people from meeting their basic needs. So yes, paying your share of taxes, especially if you're wealthy, is a patriotic duty.

(Credit: Sullivan)

Tuesday, September 16, 2008

Will your taxes increase under Obama?

Yes -- if you make over $603,000 or so per year! Chartjunk has a great chart comparing tax plans from Obama and McCain:



Notice the difference in priorities?

(Hat tip: Andrew Sullivan, whose blog is a bit addicting.)