Thursday, April 15, 2010

Tax Day

According to the Tax Policy Center, a Washington research organization, about 47 percent of Americans will pay no federal income taxes for 2009.

Having paid income tax since my very first job ever at age 13 (after school vacuum cleaning several stores along Pitkin Avenue in Brooklyn and also cleaning their bathrooms after they closed), I've managed to pay income taxes every year since that year and this past year was the most brutal tax year ever for me.

It has also always escaped me the fairness of having about 1% of US households pay about 40% of all taxes collected in this nation and the other top 9% of US households combine to pay almost 75% of all taxes collected.

The reason that most European nations and especially the new democracies from the former Soviet empire adopted either a flat tax system or a Value Added Tax (VAT) system is simple: "It's simple!"

Every nation in Europe that I've lived in had a flat tax, except for the UK, which has a VAT (17.5%).

But here, the tax laws are so complex, and the tax load so disparate and so huge, that we need an army of IRS folks to enforce them and an even bigger army of accountants and lawyers to interpret them.

Makes my head hurt; check's on the way.

1 comment:

Anonymous said...

that 2009 percentage includes people getting stimulus tax credits, which will hopefully do what is intended and get the economy back to where people are employed and paying more taxes.