Taxes suck. Whether you are a Democrat or a Republican, we can at least agree on that much. The difference is whether or not we believe they are a necessary evil. Here’s the thing though: the economic system in the U.S. doesn’t incentivize fair or equitable tax codes, and in essence helps the rich stay rich while the poor stay poor.
Recently, these imbalances have been center stage, as healthcare is being cut for many citizens across the country with the repeal of Obamacare. It leaves us all asking: what exactly are people paying for when they pay their taxes? And why?
What Taxes Do
Taxation, to an extent, is required for the smooth functioning of the country and all of its various functions. For example, most of the taxes you pay to the federal government go to defense programs, social security (disability, pension and so on) and health care. Taxes also pay for scientific and medical research, transportation (road maintenance, for example), education and assistance programs like food stamps, unemployment and support for low income families. After all, poverty sucks.
While these services are certainly vital to our everyday lives, the way tax code is used and manipulated is hardly fair or unbiased.
Inequality.sucks and our taxes are doing little to heal the divide. If you also think it’s time to stop serving the interests of the 1%, speak up with wealthinequality.sucks, fundingtherich.sucks or thesystem.sucks.
Unfair Imbalances
Income tax is full of strange stipulations and imbalances. For instance, married couples pay more in taxes than single people living together. Childless workers pay to offset costs for families with children but see very little benefit themselves from what they pay. This group isn’t eligible for wage subsidies that help low- and moderate-income families, meaning poor, childless Americans are often propelled further into debt.
Income tax also pushes jobs overseas by heavily taxing American corporations and putting the “Made in America” label at a financial disadvantage. And American job loss sucks.
If you agree that taximbalance.sucks, tell our gov that it’s time taxes did more than fracture our society and push us out of the very country we’re giving money to.
Mortgage Interest Deduction
The mortgage interest deduction is an example of how poorly the tax code operates. This particular tax break allows homeowners to deduct mortgage payments from their taxable income. While this is meant to encourage people to buy homes, richer folk are the ones who benefit (as they often pay high mortgages) and low income families (who often rent or pay much smaller mortgages) see no benefit at all.
Agree that it’s time to stop padding the pockets of the upperclass? Tell the world about it at badtaxcode.sucks or theonepercent.sucks.
Lobbyists and Interest Groups
Loopholes exist to benefit certain transactions and businesses over others. For example, financial firms can deter taxes on income earned overseas and airlines and manufacturers that use large equipment can deduct for the depreciation of their equipment before its actually decreased in value (which is, essentially, the same as receiving an interest-free loan from the government).
So why don’t we close those loopholes and inject that added tax revenue back into the country? Because powerful companies, industries and individuals hire lobbyist and interest groups to persuade the government not to do so. Taxation will never be fair so long as politics come first and the best interests of Americans come second.
TaxLoopholes.sucks, and so do corrupt lobbyists. Might be time to call out the corporations who are pushing for unfair tax breaks while the rest of us pay our fair dues.
The Takeaway
Do we need tax reform? Unequivocally, yes. The current tax system is too ineffective, too expensive (spending upwards of $310 billion a year on paperwork alone) and often benefits the wrong people. HighTaxation.sucks and IncomeTax.sucks but being part of the conversation is one big step in changing a broken system.
Photos: Shutterstock / WAYHOME studio, Shutterstock / Amy Kerkemeyer, Shutterstock / topseller, Shutterstock / DW labs Incorporated