Much ado over taxes is complex

Editorials

Discussion

September 24, 2012

Much ado over taxes is complex

Anonymous Staff The Tahlequah Daily Press Mon Sep 24, 2012, 01:06 PM CDT

TAHLEQUAH — The kerfuffle over a video depicting Republican presidential contender Mitt Romney suggesting the 47 percent of Americans who don’t pay taxes will be voting for President Barack Obama may have abated somewhat, but the wound it opened will fester beyond the Nov. 6 election.

Romney’s figures weren’t quite accurate, and his prediction that people who don’t pay taxes won’t vote for him is off-base as well. Especially in this area, he has a sizable support base among conservative retirees and folks on disability, as well as wealthy Americans who, like Romney himself, make their living primarily from investments rather than payroll checks.

But if there’s an overarching point to be gleaned from all of this, it’s that most Americans – Republican and Democratic – agree that too few of us pay taxes, and that everyone should pay at least something. Yet blaming one party or the other for the proliferation of tax-dodging “deadbeats” is tantamount to rewriting history. A number of programs designed to give the working poor a hand up, and to reward successful Americans for their investment acumen, have enjoyed bipartisan support in years past, when the political climate wasn’t quite as volatile as it is today.

Many people assume the “working poor” pay no taxes, but they do pay federal payroll taxes. On the other hand, a handful of the wealthiest Americans paid no federal income taxes in 2009, due to tax breaks for investment losses. Federal income taxes aren’t leveled on Social Security payments for elderly and disabled Americans, and certain military pay is also exempt.

The Earned Income Credit is a key reason why so many Americans may not pay income taxes. Back when Congress introduced it in 1975, it was extremely popular – so much so that President Ronald Reagan, whom many conservatives hold up as their icon, said this about it: “The bill I’m signing today is not only an historic overhaul of our tax code, and a sweeping victory for fairness, it’s also the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.”

Reagan believed, like other conservatives of his era, that this little loophole would encourage people to work – and it did. Subsequent presidents in both parties viewed EIC expansion in a positive light. Under Bill Clinton, about a quarter of U.S. households were exempt from income taxes.

That percentage had increased to 36 percent by the time George W. Bush left office, because Bush himself introduced a child tax credit. Under Obama, through a combination of high jobless rates and temporary tax breaks, nearly half of U.S. households haven’t paid income taxes, though they may pay others – and two-thirds of those who don’t pay incomes taxes do have jobs.

As the economy improves, these temporary tax breaks will expire – as, indeed, they should. And there’s something to be said for the current push to make everyone pay something. Even a minuscule amount suggests not only personal responsibility, but ownership in society.

But in these politically-charged times, Americans need to watch our generalizations and assumptions – not just about who pays taxes and who doesn’t, but about what these folks will do at the polls. It’s a complex topic, and people have complex motives for supporting one candidate over another.

Text Only

Editorials

Give the teachers what they deserve
When is the demonization of the teachers of this state going to stop? How many sacrifices do teachers have to make before the public realizes the anti-educator campaign is completely baseless, initiated by a small group of malcontents looking for someone to blame for society’s ills or the failures of their own offspring?

May 24, 2013
Welcoming our visitors to town
In just a few days, visitors will be pouring into Cherokee County, as the Memorial Day weekend officially ushers in the local tourist season. For some of us, that means it’s time to batten down the hatches; for others, it’s time for the cash registers to start ringing.

May 20, 2013
Phone record debacle an insult to press
Distrust of government secrecy has been elevated to an exceptional level with the disclosure the Justice Department covertly examined two months of Associated Press phone records to determine who leaked details to the AP about a foiled terrorist plot.

May 17, 2013
Punishing the animal dumpers
Animal dumping is not a problem unique to Cherokee County, but anyone who’s been keeping up with current events for the past decade or so will acknowledge it’s especially prevalent here.

May 13, 2013
Openness on AG the right course
It takes courage to admit to a serious mistake or a personal lapse, especially when the nature of the situation may call for a public mea culpa.

May 10, 2013
Legislative action not encouraging
It’s outrageous to advance the argument that it’s “fair” for Chesapeake Oil to wind up with a negative tax bill – lower than the average Oklahoman paid last year. Yet that’s precisely the message some of that company’s protectors in the state Legislature are trying to convey.

May 6, 2013
Cast your ballot for ‘At Its Best’
May has arrived, and that means folks will be relishing their upcoming trips over the Memorial Day weekend to Lake Tenkiller and the Illinois River. Before that, families with 12th-graders in their households will be making plans to watch their children make the monumental transition that graduation brings.

May 3, 2013
Corporations shouldn’t have ‘people’ status
Since the Supreme Court made its fateful 2010 decision in the Citizens United case, most Americans have come to agree with the cynical statement that “corporations aren’t people.” And most Americans – except that tiny fraction who wield all the power – would approve of a constitutional amendment to make it tougher to buy a congressman.

May 1, 2013
Anti-texting bill still needs look
A bill that would have banned texting while driving was shot down for the third and presumably final time this legislative session, and we can’t say we’re surprised.

April 29, 2013
Red Fern a great family fun event
By the time many of you read this, you’ll already be just hours away from milling around, or kicking back in your lawn chairs, at Norris Park. Some of you might already be downtown before your paper arrives.

April 26, 2013
More Editorials Headlines

Should storm shelters be a mandatory part of construction in tornado-prone areas?

Editorials

Search Results

Discussion

Much ado over taxes is complex

Should storm shelters be a mandatory part of construction in tornado-prone areas?

Site Map

Contact Us