Bang for the Buck

The debate rages on regarding tax rates. From the left, we hear, "The wealthiest 1% has a lower tax rate now than at any time in history." "Warren Buffet's secretary pays more to the IRS than he does." "General Electric paid zero taxes last year." From the right, we hear, "This is class warfare." "Increased tax rates will stifle job creation." "Higher taxes will limit the genius of a Steve Jobs or a Bill Gates and all the ensuing economic progress." "A 9-9-9 Plan or a 20% flat tax will solve all our problems."

But what does all this sound and fury mean to the common American? I'm reminded of a conversation I had with my father back in 1964. I had just learned how to fill out a Federal Income Tax form in Problems of Democracy class at school. The family Form 1040 that year showed that we owed the IRS a few bucks (and that on a whopping income of less than $5,000). When I gave my Dad the bad news, he said, "We will pay it because we have to. It is too bad, though. My tax dollars help to build an aircraft carrier or buy a bomb that will keep those Russkies on their side of the ocean and you know what? If Khruschev was in the White House, it wouldn't make a damn bit of difference to me. I'd still be spending ten hours a day loading and unloading sides of beef. Maybe my boss would be speaking Russian, but that's it."

Putting it in the simplest of terms, who gets more bang for his tax buck - the common man or the wealthiest 1%? Who benefits more when we spend $1 trillion to "stabilize" Iraq - the guy loading sides of beef or the executives at Exxon? Who loses more money if billions of tax dollars do not rescue those banks that are "too big to fail" - the guy living from paycheck to paycheck or the bankers who will miss out on their bonuses? Who gets richer when the government builds a "bridge to nowhere" in Alaska - the Walmart greeter in Cleveland whose tax dollars paid for it or the contractors whose political donations made it happen?

Fox News repeatedly informs us that 50% of taxpayers pay no tax at all (and a lot of them have cable TV and dishwashers!). Maybe that is at it should be. Updating my Dad's argument, if the Chinese call in their IOUs and take over, Dick Cheney and his Halliburton buddies have a lot more to lose than I do. Maybe they should pay to maintain the status quo.