Bismarck Tribune - North Dakota News - Whoopie -- it's tax day

Whoopie -- it's tax day

Apr 15, 2008 - 05:45:19 CDT

By the end of the day, individual Americans will have given the Internal Revenue Service $1.21 trillion to satisfy their personal tax liability. That’s up from $1.16 trillion in 2007.

“Given” is such a calm word and probably an inappropriate one for the context.

April 15 is our annual occasion of trying to convince ourselves that paying taxes is a privilege of citizenship.

We need to remind ourselves that we share in benefits that justify the sum of “payments made” and “amount you owe.”

Cynicism totally aside, it is good to be American. And a treasured aspect of our freedom is the right to grouse about paying taxes.

It would feel a bit better to send in the 1040 if we had the feeling the tax burden were shared fairly. According to financial writer Gary Weiss, 61 percent of American corporations paid no corporate income taxes between 1996 and 2000. The share of the tax burden has fallen for U.S. companies over the years. Of the total federal tax revenue in 1940, corporations paid 50 percent. Last year, they paid 14.4 percent.

Granted, corporate tax rates themselves are high, as compared with other developed countries.

But the tax laws tend to be kind to corporations.

It is appropriate that there is legislation in the U.S. House of Representatives to close loopholes in corporation taxes. But that’s been promised so often. It’s not likely there will be much bipartisanship between now and the November election.

The performance of the economy is the crucial matter in determining total tax revenue. It looks worrisome. Even so, it’s hard to imagine anyone championing any new tax during an election year.

Ronald Reagan had a paradoxical relationship with government and the U.S. economy. During one of his election years he had no trouble with pressuring the Federal Reserve to be more active in stimulating the economy. But Reagan, the foe of taxes and the friend of free enterprise, seemed to regard government as the problem, not any solution. He told a conference on small business, “The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

It almost gives a taxpayer pause about being up and moving today — that out there is a tax looking for a moving target. But the alternative is not attractive. Let’s move on. Taxes and death are not happy topics.

If you were owed a refund by state or federal governments or both, here’s a word of advice: Don’t say a word about it today. Someone might hear it and snap.

News > Opinion

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Comments

expositor wrote on Apr 15, 2008 6:04 PM:

" Thank you, Fred. I agree with what you said. "

Brenarlo wrote on Apr 15, 2008 3:18 PM:

" You say that all of these companies aren't paying any corporate income taxes as if they're in a far off land... ever heard of Renaissance Zones? Local corporations aren't paying anything either. I don't think they should... I don't think any corporation should. Do we really need to have an income tax? Why should the government get first crack at MY money? The government doesn't know the circumsta "

Fred wrote on Apr 15, 2008 2:45 PM:

" To 'TAXED TO DEATH': Is someone holding you hostage here in America? I'm sending a pretty hefty check to the IRS today but I wouldn't want to live anywhere else. God bless the USA. "

TAXED TO DEATH!! wrote on Apr 15, 2008 10:35 AM:

" We are a country that is set up to pay taxes on everything, sometimes we even pay taxes , on top of taxes. you pay taxes on things you buy, the money you earn, services you get, and even get taxed when you die. WOW, what a country to live in, I sure hope I am alive the day they put a flat tax in, and I get to see the drug dealers, and crooks, and prostitutes, and corporations pay the same taxes as the rest of us, since they dont at this time.
"

ND in MD wrote on Apr 15, 2008 9:31 AM:

" ......61 percent of American corporations paid no corporate income taxes between 1996 and 2000. The share of the tax burden has fallen for U.S. companies over the years.......

I am not sure what the point of the above quote is, but in my opinion, no corporation or businss pays taxes. Taxes (income, property, inventory, etc) are costs of doing business which are passed on and added to the price of the products a business makes or to the service they provide. Eventually all enbedded taxes are paid for by the end user (consumer) of the product or
service. In the end, raising taxes to force corporation "to pay their fair share"
results in higher prices for good and services for the consumer.
"

lmno wrote on Apr 15, 2008 9:05 AM:

" Please don't forget what the fine cap and trade racket is going to do to your pockets. Has there ever been a tax the politicians didn't like? "

jh wrote on Apr 15, 2008 8:44 AM:

" Who do you think pays corporate taxes? The people that use the goods and/or services of that corporation. All high corporate taxes do is push businesses to move to places where they are lower. If you want to stimulate the economy and create jobs then lower the corporate tax. "

Halatbis wrote on Apr 15, 2008 8:19 AM:

" It is interesting to note that there was no mention of the tax increases that are coming in 2010 as the so-called "Bush Tax Cuts" expire--depending upon who gets control of the Presidency and/or if the Democrats get a veto-proof Congress. The expiration of those tax measures will put in place the largest single set of tax increases ever in the sad history of government takings in the U.S. All this without any politician having to go on record as voting for the tax increase--it will happen by default. "

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