Taxed Too Much, Are You?

Given the fact that I have pretty much said all I have to say about most topics and some of my former posts aren’t half bad, I repost here one I wrote early on as it still appears to be relevant.

I have had the audacity to suggest that we need to change our mind-set about paying taxes. We lump taxes together with death as the two things we dread and can be certain of. But I suggested that we need to think of taxes as a way of helping our neighbors who may be in need and improving our schools which are failing to get the job done. We pay fewer taxes than most of the people in the “developed” countries and our schools are near the bottom of that group of countries as well. There may be a connection.

In reflecting on this issue, I came across an article in the British paper The Guardianin which the author suggested that Brits — who also dread taxes — think about Sweden where the attitude toward taxes is downright positive. In a recent poll, it was revealed that a growing number of Swedes are pleased to pay taxes because they feel their tax money does so much good. As the article went on to explain:

One way to examine the issue is to compare state help provided by the British government to one which traditionally charges much higher taxes: Sweden. Swedes support the second-highest tax burden in the world – after Denmark’s – with an average of 48.2 per cent of GDP going to taxes. Yet Sweden, along with equally high-taxing Denmark and Norway, tops almost every international barometer of successful societies.

Swedes’ personal income tax can be as little as 29 per cent of their pay, but most people (anyone earning over £32,000) will pay between 49 and 60 per cent through a combination of local government and state income tax.

And yet, the Swedes are happy, the article goes on to explain. What angers them is people who won’t pay their taxes and therefore fail to support national programs that help make the country strong, their kids smarter, their economy healthier, and the people happy.

The key here is twofold: First, the positive attitude of the Swedes is predicated on the good the tax money results in: better schools, free lunches for the kids, excellent teachers, and fewer people in poverty. Secondly, the Swedes don’t spend 60% of their tax revenue on the military. They are not supporting armed forces around the world that are presumably keeping the world safe for democracy. Let’s reflect on these points one at a time.

To take the first point first, the common perception in this country is that much of our tax money is wasted on the poor who are all crackheads busily making one another pregnant with unwanted children. I have written to this point as it is a misconception that is widely accepted among so many Americans who pay taxes in the 10-35% range and who really would rather hang on to all their money and spend it on themselves. But there would certainly have to be some housecleaning and a good deal more accountability before enough people in this country became convinced that their money is being well spent on those in need, on improving the schools, and helping to save the planet from our mindless abuse. There is much good being done already, but more needs to be done and people need reassurance that their money is being well spent.

But I must say the second point above is the sticking point for me. We spend an inordinate amount of money on the military, thereby increasing profits among the multinational corporations who help them build up their armaments. It’s not clear why we need such a gargantuan military presence and I sometimes wonder if it is the military presence itself that creates fear in others and results in them becoming our enemies in the first place. In other words, we are scaring the hell out of everyone else on the planet with our armed presence around the world and that may be what makes them take up arms against us — which in turn makes it necessary for us to increase military spending to protect ourselves against our enemies. It may indeed be a vicious circle. If we are not in fact a bellicose nation, we appear to be so. Perhaps if we presented a friendlier face to the rest of the world the army and navy could “stand down,” as they say in military parlance.

In any event, there are at least two obstacles to the citizens of this nation adopting a more positive attitude toward paying taxes, both of which are based on fear (and possible misconceptions) and neither of which contributes to a healthier and happier world.

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Taxed Enough Already?

I have had the audacity to suggest that we need to change our mind-set about paying taxes. We lump taxes together with death as the two things we dread and can be certain of. But I suggested that we think of taxes as a way of helping our neighbors who may be in need and improving our schools which are failing to get the job done. We pay fewer taxes than most of the people in the “developed” countries and our schools are near the bottom of that group of countries as well. There may be a connection.

In reflecting on this issue, I came across an article in the British paper The Guardian in which the author suggested that Brits — who also dread taxes — think about Sweden where the attitude toward taxes is downright positive. In a recent poll, it was revealed that a growing number of Swedes are pleased to pay taxes because they feel their tax money does so much good. As the article went on to explain:

One way to examine the issue is to compare state help provided by the British government to one which traditionally charges much higher taxes: Sweden. Swedes support the second-highest tax burden in the world – after Denmark’s – with an average of 48.2 per cent of GDP going to taxes. Yet Sweden, along with equally high-taxing Denmark and Norway, tops almost every international barometer of successful societies.

Swedes’ personal income tax can be as little as 29 per cent of their pay, but most people (anyone earning over £32,000) will pay between 49 and 60 per cent through a combination of local government and state income tax.

And yet, the Swedes are happy, the article goes on to explain. What angers them is people who won’t pay their taxes and therefore fail to support national programs that help make the country strong, their kids smarter, their economy healthier, and the people well off.

The key here is twofold: First, the positive attitude of the Swedes is predicated on the good the tax money results in: better schools, free lunches for the kids, excellent teachers, and fewer people in poverty. Secondly, the Swedes don’t spend 60% of their tax revenue on the military. They are not supporting armed forces around the world that are presumably keeping us safe from our enemies. Let’s reflect on these points one at a time.

To take the first point first, the common perception in this country is that much of our tax money is wasted on the poor who are all crackheads and busily making one another pregnant with unwanted children. I have written to this point as it is a misconception that is widely accepted among so many Americans who pay taxes in the 10-35% range and who really would rather hang on to all their money and spend it on themselves. But there would certainly have to be some housecleaning and a good deal more accountability before enough people in this country became convinced that their money is being well spent on those in need, on improving the schools, and helping to save the planet from our mindless abuse. There is much good being done already, but more needs to be done and people need reassurance that their money is being well spent.

But I must say the second point above is the sticking point for me. We spend an inordinate amount of money on the military, thereby increasing profits among the multinational corporations who help them wage war. It’s not clear why we need such a gargantuan military presence and I sometimes wonder if it is the military presence itself that creates fear in others and results in them becoming our enemies in the first place. In other words, we are scaring the hell out of everyone else on the planet with our armed presence around the world and that may be what makes them take up arms against us — which in turn makes it necessary for us to increase military spending to protect ourselves against our enemies. It may indeed be a vicious circle. If we are not in fact a bellicose nation, we appear to be so. Perhaps if we presented a friendlier face to the rest of the world the army and navy could “stand down,” as they say in military parlance.

In any event, there are at least two obstacles to the citizens of this nation adopting a more positive attitude toward paying taxes, both of which are based on fear (and possible misconceptions) and neither of which contributes to a healthier and happier world.