Why We Should All LOVE Paying Our Taxes
Why I LOVE Paying My Taxes!
When you’re in the midst of a recession that has been compared, and not favorably, to the Great Depression, the last thing you might want to do is pay thousands of dollars in taxes to the Federal government. And yet that’s what millions of Americans will have to do on April 15th (or risk scrutiny by the IRS).
If you’re not skipping merrily down to the post office all excited about the investments you get to make in our nation’s infrastructure, safety and human services, just repeat to yourself one (or all) of these mantras. You might not wind up skipping, but hopefully you’ll feel a little better.
I’m Making Investments in My Country
Citizens around the country and, indeed, the world have been mesmerized by the stand-off between Somali pirates and Captain Richard Phillips of the Maersk Alabama. And while that stand-off ended less-than-optimally through violence, how was the Captain rescued? That’s right, by Navy SEALS. And who pays for those Navy SEALS? That’s right, you do.
Now, granted, Navy SEALS may not be your thing. What about roads? Parks? Healthcare for the poor and elderly? Food stamps? Public broadcasting? In fact, whatever your particular interest is, some portion of your tax dollars are going toward that project. If you’re curious as to where your tax dollars go, check out the National Priorities Project and their interactive tax chart. Here you can enter the amount of taxes you actually paid (if it doesn’t make you cry) and determine where those dollars went. Then, as you’re filling out your 1040, pretend to yourself that you’re making a donation to the programs you love best. You can even include that in the “memo” portion of the check – believe me, IRS workers have seen it all. That might ease the pain a little.
My Taxes Benefit Me Directly
If you’re not convinced by the broader benefits to society that paying your taxes brings, think about it from a purely selfish perspective. Every minute of every day you are impacted positively (or, OK, negatively) by government actions. Think about it. Did you wake up this morning? If you did and heard the clock radio alarm or watched television, you were affected by FCC regulation of the radio spectrum. Did you take a shower? Clean water regulations (hopefully). Have some coffee? Trade tariffs on coffee beans. With cream? Dairy price supports. Use the restroom? You better hope there are combined sewer overflow regulations in your area. Drive on a road? Well, you get the point.
If you want to test this out, pick a day when you’ll stop every few moments to write down how government affects you (you can even use Twitter, if you’re so inclined). Then, imagine that your personal tax dollars are bringing you these benefits.
I’ll Gain Access to Potential Perks
You know the old adage “you’ve got to spend money to make money?” Well, that definitely applies in the tax world. This year, thanks to the American Recovery and Reinvestment Act and other recently passed bills, Americans can claim all kinds of credits on their returns. The catch is, you’ve got to file to get the cash.
For example, raise your hand if you lost money in the stock market. Wait, wait, I can’t see over all the hands! Well, if you sold your stocks at a loss before the end of the year, you may be able to claim that loss on your taxes. If you bought a car or a house, more credits may be coming your way. So take a careful look at all the existing and new deductions and credits. You may be surprised at what you’ll gain!
I’ll Avoid Public Humiliation and Additional Fees (and possible Jail Time)
Famed mobster Eliot Ness wasn’t sent to jail for the many violent crimes he allegedly committed. No, what brought him down was tax evasion. And, although they certainly shouldn’t be equated with mobsters, tax problems have dashed the career hopes of everyone from cabinet nominees like Tom Daschle to the coffee shop owner here in DC who just didn’t pay his local taxes for about ten years. With penalties and fees, his tax bill topped $400,000 – and now he’s out of business.
Whether you’re concerned about how your tax situation will be addressed during your nomination hearing, or just want to avoid losing your business, it’s important to stay on top of your tax obligations. In fact, many employers now look at how individuals manage their finances as one important hiring criterion. You don’t want to lose your dream job because you just couldn’t bring yourself to write that check on April 15th.
I Have the Right (and Responsibility) to Advocate on Government Spending
“But wait,” you’re thinking. “The main reason I don’t want to pay my taxes is because government spends my money on things I don’t like.” Sure, it’s all very well and good to imagine that you’re spending money ONLY on those government programs that make sense to you. But as a practical matter, that isn’t really the case, is it?
Well, here’s the most wonderful thing about our tax system and our overall system of government. If you don’t like where your tax dollars are being spent, you have a right and a responsibility to let your elected officials know! For example, if you paid $5,000 in taxes, you’ll find out that $1,470 went to the military and just over $1,000 went to health services. For some people those ratios are just fine: others believe that more should be going toward non-military programs. Wherever you stand on the spectrum, let your elected officials know what you think we should be investing in as a nation. You can reach them through a site like www.congress.org
When All Else Fails…
If things get too stressful just try to be thankful that at least you’ve got some income to pay taxes on, right? There are too many Americans struggling to make ends meet (especially in this economic climate). So sit back and relax with a little television – and who knows? That show might not have made it to your set without some sort of taxpayer investment.
Stephanie Vance
The Advocacy Guru at Advocacy Associates, LLC
www.advocacyguru.com
