Slice of Life

Mark Twain was famous for quipping, “What is the difference between a taxidermist and a tax collector? The taxidermist only takes your skin.”

As I sit to write this there are two more days to complete your tax return and make the timely filing deadline. While it might have been easy for Mr. Twain to make a joke, many people struggle to complete their returns and get them in on time. And a growing number of disgruntled Americans debate the legality of even being required to file a return. Barry Goldwater commented on those who are required to file but don’t file for one reason or another, by stating, “the income tax created more criminals than any other single act of government.” By taking a stand as an objector and not filing or by making a simple error on your return, there may be consequences due citizens by the income tax requirements.

I actually am not opposed to paying some level of tax. I appreciate driving on smooth roads, with good signage to help me on my way. I like libraries and schools to be available and want a well-equipped military to ensure our nation remains independent and strong. As a former social worker, I support paying for most programs to care for our seniors and disabled populations. Would I like more say in how my taxes are spent? Yes. However, I do recognize the need for some level of taxation to occur.

Taxes are not new. Tax collectors and taxes have been around for a very long time. Government’s representatives are held accountable for specific services and have only one source of income to make things happen. Taxation. Even in Biblical times, taxation was a normal part of society. In Romans 13:7 Paul tells the people, “Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.” And even Christ said in Mark 12:16-17, speaking about the coins used to pay for goods, “Whose image is this? And whose inscription?” [on the coin] “Caesar’s,” they answered. Then Jesus told them, “Give unto Caesar what is Caesar’s and to God what is God’s.”

There is a rich history of taxation in our country as well. In the constitution, taxation was addressed in Article I, Section 8, Clause 1: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States. Originally federal taxation was set up to tax ONLY the states with each state determining how to tax their residents to pay the federal tax. It wasn’t until 1913 when the sixteenth amendment was ratified that the federal government was able to begin taxing individuals. In the early years of taxation, 1913, the tax rates were an average of 3% for individuals making $50-70,000.00 with 7% being the top rate paid at $500,000.00 and above. By contrast, in 2020, the average tax rate paid was 37% for middle class incomes, below $250,000.00. https://taxsummaries.pwc.com/united-states/individual/taxes-on-personal-income

Most Americans now pay tax on their income, retirement benefits, interest, and an additional tax when they make a purchase in the form of sales tax in many states. They also pay hidden taxes in the form of gift taxes, utility taxes, phone taxes, gas taxes, property taxes, cigarette, and alcohol taxes (the so-called sin taxes) hotel room taxes, airfare taxes, gambling tax, investments tax, estate tax (also called the death tax) and more. According to thehill.com in 2018 these taxes amounted to $657 billion in hidden taxes! And these figures do not consider the taxes on businesses in the form of import fees and tariffs, capital gains tax, inventory taxes, employee taxes and more. The creativity shown in ways to tax the citizens of the United States is amazing and staggering. Then of course there are the indirect taxes imposed by fees for such things as permits for wells, subdivisions, sewers, fishing/hunting licenses, and car/truck/recreational vehicles registrations, etc.

Whew! No wonder George Harrison wrote the song Taxman. In an interview Harrison stated he was so happy to finally be making some money and then he met the taxman! He recently posted this famous line from the song “Let me tell you how it will be, there’s one for you, nineteen for me ‘Cause I’m the Taxman”, on Twitter, with a copy of the check for one million dollars he sent into the taxman. Now most of the people I know have no fear of needing to send a one million dollar check into any taxman, but I think I can relate to how Harrison must have felt signing over that hard won income.

So hopefully as you read this it will be with a sigh of relief because another tax season is over and you can get back to the work of paying those unseen taxes, prepaying with each paycheck to avoid late payment penalties and planning on how to spend your tax refund, should you receive one. Unless of course you needed to file that dreaded extension, prolonging the end of the tax season. For me, I believe we should all pay our taxes with a smile. Which I tried to do once, but the IRS wanted cash.

Chelle is a recovering social worker who currently works as a licensed massage therapist at Cherry Creek Myotherapy. She moved to Montana with her husband David and two pups, Lucas and Turner, where they seek “the quiet life” amid new adventures.