I am the prime example of the broken tax system. I make about $70k a year. I am married and I have no children. My wife works as a part time school teacher because in Georgia there are no teaching jobs for Art teachers available due to lack of funding. (That means half the pay with all the hours.) Together we bring in around 90k a year in gross income, but much less after taxes.
I have worked very hard to get where I am today. I paid my way through school (yes, with help of government grants), I found a good job, I bought a house that was well under my budget in hopes of paying it off quickly, I own two small fuel efficient cars (one of which is paid off), and I am a stickler about savings, energy costs, and budget. My reward? I get to take home only 66% of my gross income.
The Problem with taking home 66% of your income
I’m a middle class guy. I’m certainly not rich and I am well above the poverty line. I am thankful for that and constantly working to improve my state and put more and more cushion between my wife and I and poverty. I want security. Yet – I have a certain amount of difficulty understanding how the system justifies taking from me such an amount. Taxes and insurance alone at a rate well above 25%!
The thing that gets me is that when I see where my money goes I don’t think of some poor kid who’s parents are addicted to drugs. I see my Mom and Dad. Two people who have abused the system for 20 years, lived off tax dollars, and refuse to help themselves. Sure, I admit, there was a time when I was a kid that Government money was putting food into my mouth. However; why has the system allowed them to keep those same benefits 10 years later? Is the system making them complacent, enabling them, or providing a good service? I think infinite Government help does more harm than good.
Tax the rich?
This is the point a lot of people would make the argument we should increase the taxation on the rich to ease the load for the middle class. I would agree with that if I felt that the Government was using our current funds efficiently.
The way I see it we could do a whole lot more with less. Spend less on military efforts abroad, fix our broken welfare systems, ensure that those who need help get it and those abusing the system are dropped from it, scale back the scope of the Government where they add no or little value, and stop asking the Government to be involved where it shouldn’t!
Implosion for my Generation
What’s worse is that there are countries (Canada, Japan, Netherlands) that even provide Universal healthcare with less tax dollars per person than we do. We can’t do it all without straining the system. Period.
We can’t have the worlds largest military, provide Universal healthcare, maintain massive entitlement systems, pay for public services, and all the other various functions Government has taken on and expect it not to put a strain on the people. Something has to change. The system has to be ran better, cuts will have to be made, or we will suffer. My generation specifically, my children’s generation probably even more.
Those are the thoughts that keep me up at night.
I don’t want to be extreme
I’m not going to go all Ayn Randian on you here and advocate we eliminate Government and taxes completely. There are a lot of opportunities and benefits from certain programs. I get that, but if anyone looks at the current system, the current tax rates, and the current received benefits and doesn’t find something wrong – then I don’t understand.
It’s easy for me to see why some people would be liberal on the issue. Especially wealthy people in cities. If your needs are taken care of and you rely on many Government services (public transit, public parks) than to you high tax rates are justified.
However, if you take a guy like me – or even more so in rural communities – who uses their own care, the public park is their own land, and they see no benefit from federal income tax except the pictures of central park – then why is it a surprise we have varying opinions?
I’m all for reasonableness. Right now I think we are veering off that path. I mean when the Governing body decides the best place to cut funding is from schools and creative programs and not from their own salaries – then we know we have a problem!
Sometimes it can feel helpless. The Government takes away from my paycheck via taxes, hinders our children’s education via cuts in funding, and then inhibits my wife from being able to get a full time job teaching children. This is all out of our control – and that’s the part I can’t stand – not being able to control our own destiny. I think that is the frustration many Americans feel.
I’m not rich enough to shelter my family from the problems. I can’t send my kid to private school to avoid the problems with public ones. Yet, the Government thinks I’m plenty rich enough to be in the highest tax bracket. It’s a little strange when you consider who makes those rules – let’s just say they haven’t taken a pay cut recently and I’ll bet kids are in private schools.