Why I Like Taxes

Over the last week I’ve been trying to iron out what the tax rules will be for me as I go into the book writing business. I’ll have no income of my own this year, so haven’t thought about. But with an actual plan in place for getting the book published, I hope I’ll see some income next year. Even if it’s $50, it’s still income.

During this process I’ve been reminded of two facts

1. The US tax code is needlessly complicated
2. People will do anything they can to get out of paying taxes

Much of the advice I received was either contradictory or designed to help me pay as little as I could legally get away with. The problem is, I wanted to know what I was supposed to do, not what I could do. Addressing problem number 1 is not an easy thing and it’s not really what I want to talk about. But part 2, that’s not necessarily any easier to change, but it’s much easier to conceptualize.

Just like any other Human on the planet, I want to make as much money as I can. I understand that motivation to wanting to do what you can to limit your tax liability. But many people take things a step past that. They go from being willing to take advantage of a loophole, to believing it’s an insult to ask them to pay taxes at all.

The problem is, like many things, a perception problem. America was founded on an anti-tax platform. Or so people think. But that is distorting things. The issue was one of taxation itself, but of taxation without representation.

Over time this negativity towards taxes has evolved into a dogmatic belief. People decry the evils of the IRS and the unfairness of having to pay taxes. But then they get upset about government deficits or demand government programs not be cut.

You can’t have a united society the size of our country without taxes paying for those things that serve society as a whole. So here are some reasons I like paying my taxes:

1. I like having well maintained roads to drive on.
2. I enjoyed my public education and wish my son to get educated.
3. I like not having to worry about whether or not my food is contaminated.
4. I like having clean air to breath.
5. I like knowing that when I’m old, I’ll have assistance with medical expenses and some income to make up the gaps in my retirement savings.
6. I like not having to worry about being invaded.
7. I like knowing that if something terrible happens, there are programs to turn too to help get me back on my feet.
8. I like knowing that if a natural disaster hits, help will come.
9. I like that if my house catches on fire, someone will come to help put it out.

So, yes, there are problems with the tax code and the way money is spent. There are inefficiencies and corruption. But that just means we need to correct those things. It doesn’t change the fundamental value of government and taxes. We live in a society, not in anarchy. There are inefficiencies and corruption with any company you pay your bills too. Nobody whines nearly as much about paying bills as they do about taxes.

It is possible to pay high taxes, have a functional government and a happy society.

I’ll leave you with a great little speech from Elizabeth Warren