When I type “taxes” into Google, I get over 424 million hits. Taxes are everywhere because the government needs a way to offset its irresponsible overspending. Lukas and Schaffer bring to the table an imperative point that they say is “often lost in the conversation about the ‘War on Women’” (67).
Women pay taxes, just as men do, but taxes hurt women more. “Married women, for example, face some of the highest tax rates because they are often the second earner in the family, which means that the first dollar they earn is taxed at their husband’s top rate” (67).
That was an astonishing fact for me to read. The Democrats continue to introduce legislation for higher tax rates across the board in attempt to compensate for their irresponsible spending, but in return they are disadvantaging women. Do they know what they are doing? Probably, but they want this to be swept under the rug because they are the “party fighting for women”, right?
Lukas and Schaeffer simply state the problems and provide solutions for our intricate tax code. For one, they believe that
people who put away a part of their after-tax earnings, to plan for the future and make sure they have resources available in times of hardship shouldn’t pay a tax penalty compared to those who blow their money immediately on new purchases and entertainment (68).
Americans should not be so heavily taxed on their savings and investments.
Our tax code, state Lukas and Schaeffer, needs to be simplified. “A flatter tax rate on income and lower tax rates on investment income would be important on both of these measures: reducing the penalty on marriage and on savings and investment” (68).
They also point out that our complicated tax code has negative economic effects on taxpayers who
spend another $35 billion out-of-pocket in filing their taxes” to make sure they have done their taxes right (68). “Our tax code also is a big burden on American businesses…In 2009, the National Taxpayers Union estimated that compliance costs alone would take $159.4 billion from American corporations (69).
To put this into perspective, Lukas and Schaeffer calculated that “for every dollar the government raised in revenue from corporations, companies had to pay out $1.50” (69). How can companies prosper and boost our economy when policy like this is implemented?
In return, companies end up offsetting their high tax rates to the American people. We, as consumers, are now charged higher prices for goods and employees are compensated less. “A simple, transparent tax code would be a good first step” to get money out of Washington and back into the American people’s wallets.
But, to this date, why haven’t we seen a bipartisan agreement on a transparent tax code that our nation need so desperately?
Next week Lukas and Schaeffer will expand on our education system—“Failing Students and Good Teachers”. Have a great week!