Showing posts with label Putting Your Money Where Your Mouth Is. Show all posts
Showing posts with label Putting Your Money Where Your Mouth Is. Show all posts

24 October 2007

A Simple Palliative To Assuage the Conscience of Folks Who Wish to Be Good Citizens . . .

There's a certain faction within the Democratic Party (like nearly the whole party), that seem to feel Americans, especially those of means, are undertaxed. They argue that our tax code has become terribly unprogressive, and as everyone knows, the best things in life are progressive.

But, there's a simple method to decrease this regressivity, and increase the progressivity of the current system without altering a single line of tax code.

My simple suggestion is that all good Democrats of means should fire all their tax accountants. Pay all the taxes you owe, pay more than you owe, don't claim a single deduction, don't go searching for a single loophole, don't duck your share of the burden imposed by a caring and progressive government that yearns to provide all things to all people.

Given the amount of free monies they have to throw at a variety of candidates, I would imagine many of these folks could easily afford to pay the full tax rate at their income level without taking any deductions. Send it with a note to the IRS letting them know that the IRS should keep the excess payment and not seek to send a refund check.

Furthermore, as many of these progressive politicians are also campaigning for easing the income cap on Social Security payments, I would humbly suggest that they also voluntarily pay into that wonderful system 15.3% of all their income, with no cap, whether they make $98,000 a year, or $980,000. I realize that's the rate for the self-employed, and it's combined SS (12.4% capped at $97,500) and Medicare (2.9%, currently uncapped), but as both funding retirees and providing health care to all are laudable goals, I think any reasonably progressive person shouldn't flinch at paying the full rate that self employed entrepreneurs are currently expected to pay. Right now the cap is at $97,500, but I think every Senator (and former Senator) running in the Democratic primary who has taken a stand on this issue has pledged to work towards raising that cap (Hillary was a bit cagey with her answer, only Gov. Richardson rejected the idea). Why wait for legislation? Pay that money now.

The truly progressive thing to do would be to cut that check for the full 15.3% and enjoy the heartwarming feeling of knowing that you selflessly contributed to extending the solvency of that program into the latter decades of the 21st century. Couple that with not taking a single deduction with a top tax rate of 35% (on incomes above $336,551 for individuals, or joint filing couples), and these folks can happily cut a check for 50.3% of every dollar they take in. Given the number of wealthy Democrats in this nation, this simple measure by the committed, wealthy progressive would theoretically greatly increase the government's coffers.

There's nothing stopping these folks from leading by example, until they do so, I won't hear a thing they're saying on this issue.