Things I Want My Daughter To Know: Taxes

They’re bullshit.

I’d love to be encouraging and helpful on this one, I really would. I can’t, though. I had an entire first draft written down about how at their core taxes are good, and help, and yadda yadda yadda. Let’s be honest, though, they’re bullshit.

Let me explain how taxes work:

• Americans elect government officials that promise to lessen our tax burden.
• Newly elected officials proceed to break their promises, and worsen our tax burdens.
• Americans begrudgingly pay taxes every April.
• Government officials squander tax dollars.
• Americans elect new asshats.
• Repeat.

Democracy in action.

If I could express this problem with more rational thought, and less profanity, I would.¹ A problem as tangled as the American tax laws have no rational explanation, or solution.

There are many schools of thought on how to fix the tax problem in America. Some suggest tax aided programs be drastically cut, and then let the private market step in to fill the need(s). Others suggest that wealthier people should pay more tax, thus relieving the tax burden on those that make less.

I’ve been on both sides of the fence. I see the value in allowing the private market to provide goods and services currently provided by government programs. In theory, it sounds great. It would lessen tax burdens, and provide jobs. I fear, though, that private businesses would take advantage of the people who need their goods and services. This might just be part of the solution, as competitors would likely join in and offer better experiences.

It makes some sense that if you make more you have more to put in to the pot. However, just because someone makes more money, doesn’t necessarily mean they are a bigger burden on social infrastructure. I like the approach that people who spend more, pay more taxes. Naturally, it seems, that those who have more to spend would be shouldering more tax burden. Americans, though, have a problem living within their means, so this would easily backfire. It might also discourage spending, which is needed to keep the economy going.²

Instead, the system we have in place seemingly penalizes hard workers, discourages entrepreneurship³, encourages cheating⁴, and does its best to keep people from getting ahead.

What I want you to know is that as you get older it will likely get worse. Sorry. Just be prepared. Figure out how to protect your money with investments, donations, and off shore accounts.⁵ In the meantime, don’t say bullshit or asshat at school or around your grandparents.

¹ Maybe not less profanity.
² I think. I’m not an economist.
³15.30% + other taxes
⁴How Not To Pay Taxes
⁵ Joking.^6
6 Sort of.