Taxes and Social Equity

I don't really mind paying my taxes.  I can afford them; and I feel an obligation to pay my share for public services.  Of course, taxes should be fair and equitable, meaning that those who benefit should pay and those who have more should pay more.  They should also be collectible.

Taxes in the U. S. are a big issue, largely because of a sense that they are not fair and equitable.  Apparently, 47% of American households pay no income tax, creating a resentment among the "53%" who do.  Having spent my life with others who worked and paid taxes, I was somewhat surprised to hear this.  Canada Revenue Agency was immediately questioned and assured the public that only 34% of Canadians didn't pay, being primarily those earning minimum wage, part-timers, students, seniors on pension, and the disabled.  This figure seemed more reasonable and not much more was heard about it.

The other issue in the U. S. is that the wealthy don't pay an equitable share, because of  low tax rates and available deductions.  I noticed that Warren Buffett, one of the wealthiest men in the U. S., reportedly pays a lower marginal tax rate (17.5%) and a lower percentage of income (about 10%) as taxes than I do.  My enthusiasm waned a bit, but then maybe he gives a lot to charity.

Of course, I feel that I justly should pay.  I read a survey, however, than only 18% pay all of their income taxes, because it's the right thing to do.  32% pay out of fear of being caught cheating. (Fair enough; I have to own this, too.)  But then another 38% cheat to some extent; and 12% completely evade taxes.  Statistics like this may not be terrible, but they definitely make me think another system might be fairer.

The real need is to maintain a middle class with productive, well-paying jobs.  When there is a growing economy, there is better feeling towards the Government, less pressure to cheat, less concern about the "lazy" unemployed,  less resentment of the wealthy,  and fewer demands that immigrants be deported.

One effect of the "Occupy Wall Street" movement is to give an alternative to the "Tea Party".  While the "Occupiers" concerns are amorphous, multiple, and social, they contrast to the "Tea Party" approach of reaction, self-absorption, and individualism.  The "Tea Party" resents paying taxes; the "Occupiers" want a more equitable society.  The "Occupiers" are resented by the established players as a threat to their control.

For the time being, the "Occupiers" are being tolerated with the belief that they will die out.  It will be interesting to see if a movement generated by the social media can expand and have a permanent impact, potentially creating a fairer, more accessible, democratic, inclusive, and equal society.