This is the best piece on Tax Day in a while! Garrett -- I have no idea how you manage to cover all the dark stuff and land on the bright side, but it’s so appreciated
Thanks Ellie! It's a coping mechanism in some ways (in the case of this essay, the "coping" is me wanting to trow my computer against the wall while using Turbo Tax).
This is a great post. It is both hilarious and informative (the Finnish baby boxes!). It made me want to wake my father from the dead so I could win this argument decisively (even though I was right along). And that is funny, too, because I generally do not care about winning arguments. I'm a proud, retired public servant. If I were still in a classroom today, I would make my students read this.
This post sent me off in a hunt to verify the Oliver Wendell Holmes-attributed "Taxes are the price we pay for living in a civilized society." He did say something like that, and wasn't the only one to express a similar thought https://quoteinvestigator.com/2012/04/13/taxes-civilize/. (And I know the definition of "civilized" didn't include everyone and carries plenty of colonialist/racist bias. I still like running water and appreciate the hard-working people who deal with what happens after I flush.)
Like others who commented, I'm angry about the uses of my taxes that I don't like, pleased with the uses I do like. I'm working for change, and I also accept that this is what happens when you deal with other human beings who aren't you--disagreement on priorities.
I come at this from time as an elected official, including being one who once upon a time voted on setting local property tax rates to support a community college. We got federal funds (in the form of student loans paying tuition) and federal laws like Title VI, Title IX, and the Americans with Disabilities Act all applied. I was on a board that made changes in funding for women's sports to bring us into compliance with Title IX and boy, was I glad to have federal dollars and federal law in play. (Sadly, that college that is now very much under siege from a wildly far-right takeover; I don't have a NYT subscription but if you do here's one piece on that https://www.nytimes.com/2023/03/06/us/politics/north-idaho-college-republicans.html. When I was on the board there was some move toward wanting to turn it private and I got to raise the question of how they planned to repay the taxpayers for all those years of investment. The move didn't go very far then.)
I now work in transportation for a state agency (not in Idaho--not living there ever again), which gives me insight into the mix of federal, state, local, and private money that goes into our transportation system. Each state's transportation budget is a bit different in how much of it is federally funded vs. state, but every state gets federal funds, and in every one of those states federal income taxes are shoring up the Highway Trust Fund because federal gas tax rates haven't kept up with inflation in a long time. Plenty of things I don't like about how everyone keeps building giant roads for people who drive and killing people who don't drive, but I won't dig into that. At least some of the funds do build sidewalks and shared paths, and it's much more under the IIJA and IRA laws than we've had in forever.
What I like about this? Working now as an "advocrat" (bureaucrat who advocates) and before that as a straight-up bike advocate running a statewide nonprofit, I hear far too often about how gas taxes "pay for roads" and therefore I don't deserve to be there on my bike. Wake-up fact for drivers: In no state do gas taxes (state + federal) pay for 100% of the roads. But to the extent that federal gas tax is there, my income tax dollars are there, and I'm paying for roads. I also pay for them through property tax, real estate transfer tax, sales tax paid on my bike and gear...a rich mix indeed depending on your state laws and local tax base. I pay for more than I use, considering I'm not adding to the wear and tear on the roads with tons of steel being relocated from place to place in order to move my butt rather than work my butt. (11-year-old post on my bike/transportation blog that needs number updates but is still true http://bikestylespokane.com/2012/06/18/who-really-pays-streets-we-all-do/)
So, yeah, the tax system is kind of broken and also still working. As someone who's privileged (in every sense of the word) to do work I love that's helping change the world for the better, I'm happy to pay taxes to fund at least some of the systems that do things I believe need to be done.
I used to think it would be great if I could vote to allocate my tax dollars directly in the federal budget. In principle I would do that in a heartbeat, but as someone working in a public agency I know that kind of unforeseeable budget scenario would be a nightmare. It would only work if it were a vote for future years so we all had time to adjust, show people what they'd get for their voting outcome, and ask if that's what they really meant to do (all of which would require additional staff and we don't work for free). We'd all need to spend time learning about issues we've never thought about if we wanted to make really informed votes, like the Exercise in Hard Choices I heard of back in the late 1980s from the Committee for a Responsible Federal Budget. Searching for that I found a new, similar concept and I now need to go play with this: https://us.abalancingact.com/2022-federal-budget.
OK, that's enough tax talk on not enough coffee. Off to put your tax dollars to work. Thank you!
All of this is spot on and so fascinating (I didn't know your history with North Idaho College- I've been following that story with despair)... I think this paragraph sums it all up so perfectly:
"So, yeah, the tax system is kind of broken and also still working. As someone who's privileged (in every sense of the word) to do work I love that's helping change the world for the better, I'm happy to pay taxes to fund at least some of the systems that do things I believe need to be done."
Also, thank you for being an advocrat, and all the ways that Washingtonians who will lnever meet you will have a safer ability to get from one place to another thanks to all you do!
I was elected to the NIC board after my time in the legislature. It was especially interesting to go from being an elected legislator with a geographic district to represent to being an elected member of a governing board charged with fiscal stewardship, hiring the president, setting tuition rates and property tax levies, approving labor contracts for represented staff and faculty, and serving as the final internal appeals board on HR issues that either were or would be the subject of a lawsuit. Great education all around.
Thank you for reading! I really went all the way around the mulberry bush because this is something I do think about, and parts of this I have to explain to people fairly often.
Thank you for this! It definitely inspires my own rant of sorts. We have squandered, and continue to squander, so much of our potential for greatness by being so stingy and mean towards other people. Remember when the COVID vaccine first came out? Here in northern Virginia, localities set up orderly processes for everyone to come through and get a free series of shots. Our tax dollars at work! Having not been to another country, I always think about how much misery could be saved if we just made all health care like that: just make an appointment, wait in line, be served, go on our merry ways. The free school lunches for every child in school districts, so that everyone is served equally and without stigma. Monthly payments to help families! The pandemic showed what we could do if we actually wanted to commit to doing better for everyone in the community, but as soon as it turned out that it made people happier - gave lots of people choices and breathing room - of course that had to stop. (big sigh)
Thanks for this-- i too love taxes -- for many of the same reasons you mention-- i just HATE that more than 50% of our national budget goes to military/'defense' spending-- so i love paying taxes for all the social safety net benefits (even as holey as our net is compared to all other wealthy countries), but I hate the incredibly huge 'defense' spending-- we could feed/house/educate everyone and have loads to spare if we reallocated that huge amount
Thank you for writing this as it captures what I’ve thought and felt. When someone else complains about all the taxes we have to pay or “what do we get in return?!”.
Or when I owe money back and have to pay the accountant on top of that and I have my own moments of frustration around the system. Not the idea of paying into the public service, but the privatized system around taxation and filling out forms and making the process more complicated than it needs to be so that these private entities can profit).
I lived in China for two years and it made me never take living in a country like Canada for granted. The basics we often forget about - garbage disposal, clean air, clean water, lighting on the streets, mostly free press + access to information (definitely less censorship than China!), quality education, community services like public pools and libraries etc etc etc. I can drive down a street that is maintained, turn on the tap and actually drink the water. Taxes go towards that and I am forever grateful.
On the flip side, I also lived in Sweden for a year and saw the benefits of a robust welfare state.
Taxes facilitate the public good, when they are properly managed and go towards life giving and not death creating activities.
But then again, I’m biased in that I believe everyone should have a dignified life with access to education, affordable housing, nourishing food and work.
Oh yeah, you put this so well! That piece about spending time in countries that are all over the "amount of services that government provides" continuum really resonates for me too (I remember being in Tanzania and reflecting just on how much harder so many things are when government doesn't have the funds it needs for basic services, and also lived in Sweden and spent the entire time being like "wait, so you all have THIS too?!").
Taxation isn't just theft, it's a form of slavery. Sure, we aren't whipped and beaten, but the fruits of our labor are taken and used by someone else against our will. A truly enlightened society would never mandate taxes but have everything be run by volunteerism and donations. People who believe in taxes are ultimately curmudgeons who don't believe that humans can evolve to be naturally generous without the force of government.
🇺🇸 Of course there are many people/places in our country that’s don’t have schools that teach their kids algebra or much of anything else, clean drinking water or freshly mowed parks.
"In a country such as this, it makes sense that when most Americans sit down to do our taxes, we solely root for our own personal refund and not for the health of the system as a whole."
Except those two things aren't at odds when you are doing your tax return:
🇺🇸 Because income tax doesn’t pay for schools or clean drinking water or freshly mowed parks.
🇺🇸 Because 50% of the revenue the federal govt gets - only a portion of which is income tax revenue - goes to defense, social security, law enforcement, loan interest, international things and the great “misc.”
🇺🇸 Because another 25% goes to health insurance which we try really hard to either not give people (Medicaid) or not be actually helpful to most people (ACA). And because the federal budget doesn’t pay anything for abortions, so if that’s covered by your Medicaid, your state paid for it.
🇺🇸 Because half of the remaining 25% goes to veteran support and economic programs, including SNAP and the earned income credit - all of which we make it really hard to access due to narrow qualification parameters and cumbersome + confusing application / renewal processes.
🇺🇸 Because the FDA is only 50% funded by federal money and the rest is funded by pharmaceutical companies. And since revenue only covers 83% of the actual federal budget and the rest is borrowed, that’s $1T that doesn’t come from any kind of tax revenue. So maybe the other 50% comes from tax revenue and maybe it doesn’t.
🇺🇸 Because the Post Office is self funded and no tax revenue pays for mail services.
🇺🇸 Because libraries are funded almost entirely by local revenue and fundraising efforts, with some funding from the states and almost none from federal dollars.
" After all, the system as a whole often isn’t working for us, whereas that fleeting post-filing check from the I.R.S. feels like one of the few tangible forms of assistance many of us ever receive from our government."
🇺🇸 If by "fleeting post-filing check" you are referring to tax return refunds, that's not a form of assistance from the government. It's an overpayment of your own money to the government because our tax system is cumbersome and complex, and set up to make people overpay and get a refund, instead of just paying what they owe. Our "pay-as-you-go" system means that there are penalties for not having paid 90% of your tax bill by the end of the year. Final regulations for the tax year often come out in January. Life changes affect tax statuses. And so much more that it would be impossible to accurately pay amounts that perfectly equal 90%. So we have to overpay and take a refund so we don't get a penalty.
The clear exception here being the Earned Income Tax Credit (and probably refundable education credits) which are a very small portion of refunds paid out.
To be clear, I am a left-of-democrat progressive who thinks our government should defend the rights of its citizens with as much vigor as it defends out borders, and that those rights include education & knowledge activities, safety, privacy, the autonomy to make decisions about who you marry and when/whether to have a family, basic living expenses, and etc. - to say nothing of the right to live on a planet that is not burning. "
But that is not currently how our system works nor does it seem to be a direction mainstream liberals would ever advocate for. Instead, I believe this sentiment helps liberals feel better about their arguments for higher taxes and more government. Democrats, in particular, need to believe that the government they advocate for works. This is very similar to the advice that will come from Dems when someone is struggling financially - advice that says "reach out to the United Way and other orgs like that for help - they even have cash assistance funds." This belief - that there is help available - helps democrats/progressives sleep better and feel better about their contribution to society. But it does not play out. Those funds are very hard to get (for many reasons, but notably because there need > available funds). And strict restrictions give them zero flexibility for unique situations.
*NOTE: Obviously this is not a comprehensive explanation of how the tax system works or funds anything, and it does ignore state tax revenue, which collection and uses vary in every state that has a state income tax. It also does not speak to what feels like a bypassing of the very real racism that is deeply entrenched in the laws and policies that dictate how the government earns, borrows, and spends money.
Hi LaKay. Thanks for the critique! It sounds like the two of us have different perspectives on the value of taxation, but I know we share a lot of the same thoughts on the care we owe each other and a lot of the way the U.S. falls short of providing that care.
I'll also note that, since my gut is that you and I are just on different sides on this one (and I'm super curious about what informs that take for you, because I can tell it's a really passionate one) I prob don't want to do a big back and forth (I have a hunch we'll both stay in our respective camps). However, out of respect for the amount of time and research you put into your comment I'll offer just a couple quick notes (not arguments, but clarifications based on some good points you made): You're correct that a lot of the specific examples I posed are not funded (either fully or partially) by federal income tax, that doesn't mean they aren't funded by taxes (income taxes may be some of my favorite taxes, bc they're more progressive, but this isn't an article just about income tax- it's about the concept of taxation). And yes, the postal service (in a good year) is able to meet its own needs through its own revenue (though I could argue that stamps and postage for a government run non-profit constitute a consumption tax, but I won't quibble here), but even that has to be subsidized with taxes in years where it has unforeseen drops in revenue (as took place in the 2021 budget), since it has a stautory duty to serve all communities in the U.S. regardless of profitability. You're also right that there are a lot of reasons why people receive refunds, though I'll just offer that many of those ("credits" "deductions" etc.) are there bc they were written into the tax code for redistributionist/social welfare purposes (which is not the way I'd argue for redistribution). And yes, I think you and I both agree that a less complicated tax code with less overpayment through the course of the year would be better!
I would say that what informs my view is my law degree and my master's degree in tax law, the first of which is from Boston College, a Jesuit law school, and professors who were big proponents of critical examination of laws, policies, regulations, and cultural understandings. No doubt this is interspersed with a blend of heavy old-school libertarian values from growing up in flyover states and exasperation and activism related to the Hyde Amendment from working a decade in reproductive rights.
Capped off by currently being in a situation where I am unable to provide for my family's basic needs, am in constant housing stress (after spending much of the past 3 years unhoused), and feeling 100% unseen by my government or any of the people who might be able to help.
Thanks for creating a space where those of us who envision the same (or a very similar) world can have passionate (well-researched) discussions about the different ways those goals blend with our personal cultural understands and translate to our current perspectives on policy/regulations/etc.
I appreciate you so much for bringing all of that to the table, though of course the part that breaks my heart the most (besides the Hyde Amendment, of course) is your second paragraph-- I know that it's been so hard to get by and take care of your family right now, and it fills me with both sadness and anger on your behalf that of course you don't feel cared for or seen by our government in that moment. While we're coming from this micro-conversation from different places, I know that both of us want so badly for that not to be true (either for you or anybody).
This is the best piece on Tax Day in a while! Garrett -- I have no idea how you manage to cover all the dark stuff and land on the bright side, but it’s so appreciated
Thanks Ellie! It's a coping mechanism in some ways (in the case of this essay, the "coping" is me wanting to trow my computer against the wall while using Turbo Tax).
This is a great post. It is both hilarious and informative (the Finnish baby boxes!). It made me want to wake my father from the dead so I could win this argument decisively (even though I was right along). And that is funny, too, because I generally do not care about winning arguments. I'm a proud, retired public servant. If I were still in a classroom today, I would make my students read this.
In honor of tax day (and your years of public service) I officially declare that you win the argument with your father :)
As I was reading your piece, an ad from TurboTax slid into my inbox! Thank you Garrett for clearly making the case for supporting community.
The number of emails that company sends me!!!!
This post sent me off in a hunt to verify the Oliver Wendell Holmes-attributed "Taxes are the price we pay for living in a civilized society." He did say something like that, and wasn't the only one to express a similar thought https://quoteinvestigator.com/2012/04/13/taxes-civilize/. (And I know the definition of "civilized" didn't include everyone and carries plenty of colonialist/racist bias. I still like running water and appreciate the hard-working people who deal with what happens after I flush.)
Like others who commented, I'm angry about the uses of my taxes that I don't like, pleased with the uses I do like. I'm working for change, and I also accept that this is what happens when you deal with other human beings who aren't you--disagreement on priorities.
I come at this from time as an elected official, including being one who once upon a time voted on setting local property tax rates to support a community college. We got federal funds (in the form of student loans paying tuition) and federal laws like Title VI, Title IX, and the Americans with Disabilities Act all applied. I was on a board that made changes in funding for women's sports to bring us into compliance with Title IX and boy, was I glad to have federal dollars and federal law in play. (Sadly, that college that is now very much under siege from a wildly far-right takeover; I don't have a NYT subscription but if you do here's one piece on that https://www.nytimes.com/2023/03/06/us/politics/north-idaho-college-republicans.html. When I was on the board there was some move toward wanting to turn it private and I got to raise the question of how they planned to repay the taxpayers for all those years of investment. The move didn't go very far then.)
I now work in transportation for a state agency (not in Idaho--not living there ever again), which gives me insight into the mix of federal, state, local, and private money that goes into our transportation system. Each state's transportation budget is a bit different in how much of it is federally funded vs. state, but every state gets federal funds, and in every one of those states federal income taxes are shoring up the Highway Trust Fund because federal gas tax rates haven't kept up with inflation in a long time. Plenty of things I don't like about how everyone keeps building giant roads for people who drive and killing people who don't drive, but I won't dig into that. At least some of the funds do build sidewalks and shared paths, and it's much more under the IIJA and IRA laws than we've had in forever.
What I like about this? Working now as an "advocrat" (bureaucrat who advocates) and before that as a straight-up bike advocate running a statewide nonprofit, I hear far too often about how gas taxes "pay for roads" and therefore I don't deserve to be there on my bike. Wake-up fact for drivers: In no state do gas taxes (state + federal) pay for 100% of the roads. But to the extent that federal gas tax is there, my income tax dollars are there, and I'm paying for roads. I also pay for them through property tax, real estate transfer tax, sales tax paid on my bike and gear...a rich mix indeed depending on your state laws and local tax base. I pay for more than I use, considering I'm not adding to the wear and tear on the roads with tons of steel being relocated from place to place in order to move my butt rather than work my butt. (11-year-old post on my bike/transportation blog that needs number updates but is still true http://bikestylespokane.com/2012/06/18/who-really-pays-streets-we-all-do/)
So, yeah, the tax system is kind of broken and also still working. As someone who's privileged (in every sense of the word) to do work I love that's helping change the world for the better, I'm happy to pay taxes to fund at least some of the systems that do things I believe need to be done.
I used to think it would be great if I could vote to allocate my tax dollars directly in the federal budget. In principle I would do that in a heartbeat, but as someone working in a public agency I know that kind of unforeseeable budget scenario would be a nightmare. It would only work if it were a vote for future years so we all had time to adjust, show people what they'd get for their voting outcome, and ask if that's what they really meant to do (all of which would require additional staff and we don't work for free). We'd all need to spend time learning about issues we've never thought about if we wanted to make really informed votes, like the Exercise in Hard Choices I heard of back in the late 1980s from the Committee for a Responsible Federal Budget. Searching for that I found a new, similar concept and I now need to go play with this: https://us.abalancingact.com/2022-federal-budget.
OK, that's enough tax talk on not enough coffee. Off to put your tax dollars to work. Thank you!
All of this is spot on and so fascinating (I didn't know your history with North Idaho College- I've been following that story with despair)... I think this paragraph sums it all up so perfectly:
"So, yeah, the tax system is kind of broken and also still working. As someone who's privileged (in every sense of the word) to do work I love that's helping change the world for the better, I'm happy to pay taxes to fund at least some of the systems that do things I believe need to be done."
Also, thank you for being an advocrat, and all the ways that Washingtonians who will lnever meet you will have a safer ability to get from one place to another thanks to all you do!
I was elected to the NIC board after my time in the legislature. It was especially interesting to go from being an elected legislator with a geographic district to represent to being an elected member of a governing board charged with fiscal stewardship, hiring the president, setting tuition rates and property tax levies, approving labor contracts for represented staff and faculty, and serving as the final internal appeals board on HR issues that either were or would be the subject of a lawsuit. Great education all around.
this is so fascinating and thoughtful, thank you!
Thank you for reading! I really went all the way around the mulberry bush because this is something I do think about, and parts of this I have to explain to people fairly often.
Thank you for this! It definitely inspires my own rant of sorts. We have squandered, and continue to squander, so much of our potential for greatness by being so stingy and mean towards other people. Remember when the COVID vaccine first came out? Here in northern Virginia, localities set up orderly processes for everyone to come through and get a free series of shots. Our tax dollars at work! Having not been to another country, I always think about how much misery could be saved if we just made all health care like that: just make an appointment, wait in line, be served, go on our merry ways. The free school lunches for every child in school districts, so that everyone is served equally and without stigma. Monthly payments to help families! The pandemic showed what we could do if we actually wanted to commit to doing better for everyone in the community, but as soon as it turned out that it made people happier - gave lots of people choices and breathing room - of course that had to stop. (big sigh)
Yes, yes yes! "We have squandered, and continue to squander, so much of our potential for greatness by being so stingy and mean towards other people."
Thanks for this-- i too love taxes -- for many of the same reasons you mention-- i just HATE that more than 50% of our national budget goes to military/'defense' spending-- so i love paying taxes for all the social safety net benefits (even as holey as our net is compared to all other wealthy countries), but I hate the incredibly huge 'defense' spending-- we could feed/house/educate everyone and have loads to spare if we reallocated that huge amount
Couldn't agree more!
Thank you for writing this as it captures what I’ve thought and felt. When someone else complains about all the taxes we have to pay or “what do we get in return?!”.
Or when I owe money back and have to pay the accountant on top of that and I have my own moments of frustration around the system. Not the idea of paying into the public service, but the privatized system around taxation and filling out forms and making the process more complicated than it needs to be so that these private entities can profit).
I lived in China for two years and it made me never take living in a country like Canada for granted. The basics we often forget about - garbage disposal, clean air, clean water, lighting on the streets, mostly free press + access to information (definitely less censorship than China!), quality education, community services like public pools and libraries etc etc etc. I can drive down a street that is maintained, turn on the tap and actually drink the water. Taxes go towards that and I am forever grateful.
On the flip side, I also lived in Sweden for a year and saw the benefits of a robust welfare state.
Taxes facilitate the public good, when they are properly managed and go towards life giving and not death creating activities.
But then again, I’m biased in that I believe everyone should have a dignified life with access to education, affordable housing, nourishing food and work.
Oh yeah, you put this so well! That piece about spending time in countries that are all over the "amount of services that government provides" continuum really resonates for me too (I remember being in Tanzania and reflecting just on how much harder so many things are when government doesn't have the funds it needs for basic services, and also lived in Sweden and spent the entire time being like "wait, so you all have THIS too?!").
Thanks for this perspective, Garrett. Going to share with my email newsletter audience tomorrow. Appreciate you.
Oh thanks Jess!
You’re an incredible writer Garrett and an even kinder human. This piece made taxes genuinely enjoyable to read about.
You're super kind, Sara. Such a gift to be in your life (and get to read your writing too!).
Taxation isn't just theft, it's a form of slavery. Sure, we aren't whipped and beaten, but the fruits of our labor are taken and used by someone else against our will. A truly enlightened society would never mandate taxes but have everything be run by volunteerism and donations. People who believe in taxes are ultimately curmudgeons who don't believe that humans can evolve to be naturally generous without the force of government.
It sounds like we have a dramatically different take on taxes, but I really appreciate you reading and being here!
Thank you for the kind comment! :-)
Of course! I don't get enough comments from folk who disagree with me and this is obviously an issue with incredibly different schools of thought.
🇺🇸 Of course there are many people/places in our country that’s don’t have schools that teach their kids algebra or much of anything else, clean drinking water or freshly mowed parks.
"In a country such as this, it makes sense that when most Americans sit down to do our taxes, we solely root for our own personal refund and not for the health of the system as a whole."
Except those two things aren't at odds when you are doing your tax return:
🇺🇸 Because income tax doesn’t pay for schools or clean drinking water or freshly mowed parks.
🇺🇸 Because 50% of the revenue the federal govt gets - only a portion of which is income tax revenue - goes to defense, social security, law enforcement, loan interest, international things and the great “misc.”
🇺🇸 Because another 25% goes to health insurance which we try really hard to either not give people (Medicaid) or not be actually helpful to most people (ACA). And because the federal budget doesn’t pay anything for abortions, so if that’s covered by your Medicaid, your state paid for it.
🇺🇸 Because half of the remaining 25% goes to veteran support and economic programs, including SNAP and the earned income credit - all of which we make it really hard to access due to narrow qualification parameters and cumbersome + confusing application / renewal processes.
🇺🇸 Because the FDA is only 50% funded by federal money and the rest is funded by pharmaceutical companies. And since revenue only covers 83% of the actual federal budget and the rest is borrowed, that’s $1T that doesn’t come from any kind of tax revenue. So maybe the other 50% comes from tax revenue and maybe it doesn’t.
🇺🇸 Because the Post Office is self funded and no tax revenue pays for mail services.
🇺🇸 Because libraries are funded almost entirely by local revenue and fundraising efforts, with some funding from the states and almost none from federal dollars.
" After all, the system as a whole often isn’t working for us, whereas that fleeting post-filing check from the I.R.S. feels like one of the few tangible forms of assistance many of us ever receive from our government."
🇺🇸 If by "fleeting post-filing check" you are referring to tax return refunds, that's not a form of assistance from the government. It's an overpayment of your own money to the government because our tax system is cumbersome and complex, and set up to make people overpay and get a refund, instead of just paying what they owe. Our "pay-as-you-go" system means that there are penalties for not having paid 90% of your tax bill by the end of the year. Final regulations for the tax year often come out in January. Life changes affect tax statuses. And so much more that it would be impossible to accurately pay amounts that perfectly equal 90%. So we have to overpay and take a refund so we don't get a penalty.
The clear exception here being the Earned Income Tax Credit (and probably refundable education credits) which are a very small portion of refunds paid out.
To be clear, I am a left-of-democrat progressive who thinks our government should defend the rights of its citizens with as much vigor as it defends out borders, and that those rights include education & knowledge activities, safety, privacy, the autonomy to make decisions about who you marry and when/whether to have a family, basic living expenses, and etc. - to say nothing of the right to live on a planet that is not burning. "
But that is not currently how our system works nor does it seem to be a direction mainstream liberals would ever advocate for. Instead, I believe this sentiment helps liberals feel better about their arguments for higher taxes and more government. Democrats, in particular, need to believe that the government they advocate for works. This is very similar to the advice that will come from Dems when someone is struggling financially - advice that says "reach out to the United Way and other orgs like that for help - they even have cash assistance funds." This belief - that there is help available - helps democrats/progressives sleep better and feel better about their contribution to society. But it does not play out. Those funds are very hard to get (for many reasons, but notably because there need > available funds). And strict restrictions give them zero flexibility for unique situations.
*NOTE: Obviously this is not a comprehensive explanation of how the tax system works or funds anything, and it does ignore state tax revenue, which collection and uses vary in every state that has a state income tax. It also does not speak to what feels like a bypassing of the very real racism that is deeply entrenched in the laws and policies that dictate how the government earns, borrows, and spends money.
Hi LaKay. Thanks for the critique! It sounds like the two of us have different perspectives on the value of taxation, but I know we share a lot of the same thoughts on the care we owe each other and a lot of the way the U.S. falls short of providing that care.
I'll also note that, since my gut is that you and I are just on different sides on this one (and I'm super curious about what informs that take for you, because I can tell it's a really passionate one) I prob don't want to do a big back and forth (I have a hunch we'll both stay in our respective camps). However, out of respect for the amount of time and research you put into your comment I'll offer just a couple quick notes (not arguments, but clarifications based on some good points you made): You're correct that a lot of the specific examples I posed are not funded (either fully or partially) by federal income tax, that doesn't mean they aren't funded by taxes (income taxes may be some of my favorite taxes, bc they're more progressive, but this isn't an article just about income tax- it's about the concept of taxation). And yes, the postal service (in a good year) is able to meet its own needs through its own revenue (though I could argue that stamps and postage for a government run non-profit constitute a consumption tax, but I won't quibble here), but even that has to be subsidized with taxes in years where it has unforeseen drops in revenue (as took place in the 2021 budget), since it has a stautory duty to serve all communities in the U.S. regardless of profitability. You're also right that there are a lot of reasons why people receive refunds, though I'll just offer that many of those ("credits" "deductions" etc.) are there bc they were written into the tax code for redistributionist/social welfare purposes (which is not the way I'd argue for redistribution). And yes, I think you and I both agree that a less complicated tax code with less overpayment through the course of the year would be better!
I would say that what informs my view is my law degree and my master's degree in tax law, the first of which is from Boston College, a Jesuit law school, and professors who were big proponents of critical examination of laws, policies, regulations, and cultural understandings. No doubt this is interspersed with a blend of heavy old-school libertarian values from growing up in flyover states and exasperation and activism related to the Hyde Amendment from working a decade in reproductive rights.
Capped off by currently being in a situation where I am unable to provide for my family's basic needs, am in constant housing stress (after spending much of the past 3 years unhoused), and feeling 100% unseen by my government or any of the people who might be able to help.
Thanks for creating a space where those of us who envision the same (or a very similar) world can have passionate (well-researched) discussions about the different ways those goals blend with our personal cultural understands and translate to our current perspectives on policy/regulations/etc.
I appreciate you so much for bringing all of that to the table, though of course the part that breaks my heart the most (besides the Hyde Amendment, of course) is your second paragraph-- I know that it's been so hard to get by and take care of your family right now, and it fills me with both sadness and anger on your behalf that of course you don't feel cared for or seen by our government in that moment. While we're coming from this micro-conversation from different places, I know that both of us want so badly for that not to be true (either for you or anybody).
If anyone wants more pro-tax content, jdcmedlock on Twitter is a good source of it!
ooh great rec thanks!
You may appreciate this film: Love and Taxes. https://www.rottentomatoes.com/m/love_and_taxes_2017
Ooh, I've never heard of it!