I Like Paying Income Tax. Sort of…
I like paying taxes. OK, before you call out the men in white coats, let me explain.
First, I like to think that I can be reasonably objective about such things, and, accordingly, I believe that it is important that we, the cogs and wheels of the American economy, contribute our fair share to the coffers of the Treasury. Too many Hippocrates complain about paying high taxes, and yet blame the government for lack of public health care, a poor public school system, and countless other underfunded social programs. Our overall income tax rate is actually fairly low compared to many other wealthy countries.
Personally, the more I make, the more taxes I expect to pay. And pay I do, willingly. Mostly.
On the flip side, I do everything possible short of breaking or bending the tax laws to reduce my tax liability. While I believe, as previously mentioned, that it is fair to pay appropriate levels of tax, I take whatever deductions and credits to which I am entitled. I often go overboard to ensure accuracy. It drives my wife nuts that I make her write down every single business mile she drives and make a complete list of every single household item she donates to charities. Not a penny goes into a donation cup without being recorded.
As a result, some years our income tax liability is minuscule and we get a huge refund. This year is a fortunately timed example of such a refund, thanks to the capital losses, business losses, and reduced salaries experienced as a cause of the recent economic downturn. Other years, our taxes alone exceed the annual salary of some low- to average-income families.
And still I pay them with a smile, knowing that it is fair and just, and I’m doing my part in my own way to keep the American economy afloat.
You have an hour and a half left until the Post Office closes.
