Today, many politicians and commentators routinely say that people who earn more than some magic number each year 'can afford to pay more taxes than those who earn less'. This article does not address the error in this thinking. For that discussion, see my article titled Robin Hood Tax Strategies. This article focuses on the statement itself and anyone's authority to make such a statement.
Maybe I did not introduce this topic correctly, but I'll just dive right in.
I work very hard to earn the salary that I receive. I need as much of it as possible to pay for the lifestyle that my family and I live. We are not living extravagantly! However, our budget is extremely tight. We own two vehicles (yes I mean OWN, they are both paid in full). The first vehicle is a 1994 Chevy Pickup (maximum capacity: 3) and our family vehicle is a 2002 Dodge Durango (maximum capacity: 7). Our family consists of my wife and I, and our 4 kids. That makes 6 total and as you might have guessed, we can only use the Durango when we go anywhere together. We do not have a video game console in our house (update: as of Christmas 2008, we now have a game system...bought on sale). We do not have a flat panel (LCD or Plasma) TV. We do not own a boat. We have taken very few family vacations in our 14 year marriage (Mertle Beach, Gatlinbutg, and Destin). We buy clothes at local consignment shops or at end of season sales for the following year. Speaking of clothing, we buy very little name brand clothes or shoes. We have three girls and pass down as much clothing as possible. I think you get the picture, but to recap, we are quite frugal with our finances. Although I make a good salary as a Manager at an Automotive Industry Supplier, we have to work very hard to survive financially.
As a side note, we have a small savings account and I mean small. I have a 401k through my company, but my wife has no retirement fund at all. We planned to build savings accounts for each child, but have not been able to start and grow any such account. Also note, our debt load is not increasing, but it is not decreasing either (update: after completing Dave Ramsey's Financial Peace University, we can proudly say that we are now Tithing, Budgeting, Paying Down Our Debt, and Soon to be DEBT FREE!).
The absolute best financial thing that could happen for my family is for my tax load to drop. I pay roughly 25% of every dollar to some tax bureaucracy. If I paid less tax dollars, I would have more to spend on items for my family, put into savings, plan for retirement, etc. I don't think we are any different from most American families.
I have heard several politicians lately using phrases like redistribution of wealth, spread the wealth around, and "they can afford to pay more taxes". These phrases disturb me to the core. You see, I don't understand why any politician thinks that it is their duty, obligation, or otherwise to manage the wealth of the people of this nation. The Federal Government is established by the U.S. Constitution as a government by the people, of the people, for the people. One of the Federal Government's primary obligations is to fulfill the role defined in the U.S. Constitution and to protect the rights of U.S. Citizens including life, liberty, and the pursuit of happiness as written in the U.S. Declaration of Independence. Outside of that, I think the Federal Government has overstepped it's designed intent. In other words, it is not any politician's job to tell me or anyone else how much tax we can afford!
Only I and my family can rightfully decide what we can or cannot afford. If someone can truly afford to pay higher taxes, and has the desire to contribute more to the National Balance Sheet, then I suggest that they write a check and put it in the mail. But leave the rest of us alone! We work to support our families. The less money we pay in taxes, the more we keep to provide for our families. I'll go back to what I just wrote; I work to support my family not the Federal Government. If the Government needs more money to balance it's books, then I suggest that Politicians do what families do, spend less. Cut needless programs. Reduce spending on projects that do not support the fundamentals required by our Constitution.
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