No Taxesby Kerby Anderson
How much do you pay in taxes each year to Uncle Sam? If you are like most of the people who call my radio program, you believe that you pay too much in federal taxes.
What about the people who pay no taxes? The latest research estimate shows that 47 percent of households will not owe any federal income tax. And some in this group will even get additional money from the government because they qualify for refundable tax breaks.
The number of households with zero tax burdens is increasing and may eventually reach 50 percent. And that should be of concern to Americans considering the economic future of this country. We are in the midst of significant debates about increasing spending in such areas as health care and the environment. Earlier in this decade we had debates about tax cuts, and now are having debates about increasing taxes on the wealthy. And we are even having discussions about whether the tax code is too progressive or not progressive enough. Yet we rarely discuss the trend that an increasing number of households will owe nothing in federal taxes.
Does it make sense that half of the nation that does not pay taxes will decide how much the other half of the nation should pay in taxes? Will they be more willing to vote for more government benefits since they do not have to pay for it? George Bernard Shaw once said: "The government who robs Peter to pay Paul can always depend on the support of Paul."
In many countries in the Middle East, oil revenues fund the government, and the citizens pay no taxes. Since they don't have any "skin in the game," they are less involved as citizens. What will happen in the U.S. if a majority of Americans don't pay taxes? I think a reasonable assumption will be that citizen apathy will increase.
You could argue that many who pay no federal taxes do pay some form of taxes, usually payroll taxes that support Social Security and Medicare. But we should be concerned that while the cost of government is increasing, the pool of taxpayers is substantially decreasing.
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