Tax Fairness Reaches A Tipping Point

Fiscal Policy: The latest data show a record number of people with no tax obligation. We also have the highest-earning nontaxpayers ever. With more riding the wagon and fewer pulling, it should soon break down.

A record number of the 142 million tax returns filed in 2008 resulted in no taxes owed, according to the Tax Foundation's analysis of the latest IRS data. About 51.6 million returns, or 36.3%, were filed by those whose deductions, exemptions and tax credits wiped out any federal income-tax obligation.

These aren't people who have overpaid their taxes or had so much withheld from their paychecks that they'll get refunds. Those people owe taxes and merely provided the government with a zero interest loan until accounts are settled. These are people who pay no taxes at all.

There's been a 59% increase in the number of nonpayers since 2000, growing from 32.6 million in 2000 to 51.6 million in 2008. In the same period, the total tax filers grew by only 10%.

Not only are fewer people paying any taxes, but also the income levels for these nonpayers have steadily risen. A family of four earning more than $50,000 can have no income tax liability after taking the standard deduction and the child tax credit.

According to the Tax Foundation, "The major elements of the Economic Stimulus Act of 2008 boosted the maximum income for nonpayers to more than $56,700" — the highest ever.

A year ago congress was bailing out the banking industry to the tune of $1 trillion. Then it was bailing out the auto industry. This week it’s socialized medicine. Next week it’ll be cap and tax. This an addiction to power and spending fueled by ever increasing debt. The demand isn’t going to abate until there is simply no more money to be spent.

Demand based solutions aren’t going to work. No junkie comes clean unless he/she has to. We need to start looking at supply side solutions. We need to cut the supply of money. The irony here is that conservatives are enabling the socialism.

One part of this is the tax burden that conservatives willingly carry. If you have taxable investments when tax free or tax preferred ones are available....why? Do you enjoy paying for this? Conservatives need to start thinking a little more about the tax implications of their actions.

Own savings bonds? T-bills? GNMAs? Are they the underlying investment in your money market account or 401(k)? If the answer is yes, then you’re subsidizing this just as surely as if you had scratched a check.

But what about the 5 ton elephant in the living room: the national debt? The ability to fund all this is tied to the ability to borrow. What if conservatives simply pushed for a polcy of repudiating the national debt, or more specifically that portion entered into since January 2009?

Therein lies a game changing strategy.

Zero and other lefties always make the same erroneous assumption...that tax money will magically continue to flow into federal coffers in perpetuity like manna from heaven no matter what.

You’d think that it has never occurred to Hussein that crushing capitalism and corporate America is killing the Golden Goose...but is it exactly his intention via Cloward-Piven?

Zero’s recent “3000% savings” on health insurance premiums gaff is just more proof that he is a mathematically disfunctional idiot. Or is that just a mask?

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