Tax Day

Internet image

  It's tax day - the combination of April 15th falling on a Saturday and a District of Columbia holiday pushed it back to the 18th.

 While it's easy to gripe and whine about paying taxes, it is one of the most patriotic things we do as citizens.

We don't need to give extra but the unwritten contract citizens have with their government is paying what we owe to provide the roads we rely on: public defense; roads and bridges; and the safety net that makes daily life feasible for many Americans.

 

Today is when income taxes are due.  Sales and use taxes come at us everyday depending on what we're doing - there is a tax on gasoline to support road building; there are state and local sales taxes on nearly every purchase; and there are taxes on the property we own.  In some states there are taxes on personal property; I'm thankful that I don't need to file those anymore.

 

Taxes are some times used to influence behavior.  Tax rebates might persuade someone to purchase an electric car, while taxes on cigarettes are high to reduce the number of smokers.  I'm not saying taxes or lack of them are successful influencing behavior but we keep trying.

 

Taxes on alcohol and on hotel rooms don't change behavior and are an easier way to 'sell' a new project or program than adding it to the bill paid by income taxes.

 

We lived in South Dakota for three years.  They didn't have a state income tax but the sales tax was 10% in Pierre, which hurts low-income people more than those who earn more money.  

 

The best argument for income taxes is its fairness when everyone is subject to pay the same percentage of their wages as everybody else.  However, this is also where the system falls short as some income brackets are taxed differently or have less access to deductions or creative solutions that reduce the amount they owe.

 

This tax day, I hope you've tucked your refund into savings or just dropped the envelope holding the return and your payment for your 2022 taxes.  Thanks for doing your part!