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The Tax Man Transferreth April 15, 2016

Posted by geoff in News.
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The Tax Foundation presented their calculation of Tax Freedom Day, but other than the upward trend over the past few years, it doesn’t actually look too bad:

It doesn’t look too bad, that is, until you consider that the services taxpayers are getting are being crowded out by transfer payments (social services payments) to non-taxpayers:Federal Transfer Payments Through 2014

Yeah, that’s 2 trillion smackers by 2014, or 3X the defense budget.

So basically the amount of time you work to pay taxes hasn’t changed a whole lot in 50 years, but you’re seeing more and more of your money used to support those who aren’t working.

I.e., you see less and less benefit from paying those taxes.

Comments»

1. Jimbro - April 15, 2016

I picked up my tax forms from my CPA yesterday, went to the credit union for checks and then the post office. Rather than wait for a refund check I prefer to make them wait for mine. I know, it’s a wash, I just don’t like the thought they could “delay” my refund if they wanted to hold onto the money longer.

2. Jimbro - April 15, 2016

^^^

And, yes, it was painful. The US Treasury and the Maine State Treasurer love me. Which is why I use an accountant. Between the state and the IRS I’ve had requests for more money 3 or 4 times over the years and she has dealt with them effectively (i.e.: No mo’ money sent).

3. geoff - April 15, 2016

The byzantine process of filing taxes (it took me about 50 hours for this filing) needs to be completely scrapped. All the incentives and penalties created by Congress fail to acknowledge one simple fact:

People will eventually figure out how to game the system. Rich guys will hire people who are far smarter than Congress and IRS folk to avoid penalties and capitalize on incentives. And everyone else will then follow suit.

Flat tax, man.

4. OBF - April 15, 2016

Question on your statement about transfer payment. I don’t know the answer but it will soon apply to me. Does the amount in transfer payments include social security benefits? I just may retire in a year or two and for my own benefit I wonder if I will move from the “working and paying taxes” category to the “you’re a slug” category…since I have paid into the system for an entire working career.

I’m not interested in being a slug and maybe I’ll work a few more years to make it fair for someone else.

Capital Gains has been stalking me like the destroying angel in ancient Egypt. This year I didn’t paint the door post with blood and he got in. Ouch!

5. geoff - April 15, 2016

Yes, social security is one of the largest contributors to transfer payments. But it’s also one that should supposedly have been offset by your contributions, so it’s not as much of an unfair burden on the taxpayer. The chart, though, shows that it’s not being run very well – those increases are not solely due to demographics.

6. geoff - April 15, 2016

I’m not interested in being a slug and maybe I’ll work a few more years to make it fair for someone else.

That’s a noble sentiment, but my advice is to get while the gettin’ is good.


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