Hey Big Government, Can I Have My $20 Back?

I eagerly awaited my last paycheck, as Mike and I are experimenting with living off of one income and experiencing a bit of a crunch lately. I think it's fun to double-check computer generated math and was surprised to find that 40% was withheld for taxes and social security, and I hadn't made any changes. I checked a few other stubs to find that this figure is usually 32%. Then I realized my most recent check included a bonus, probably reaching some income threshold allowing the government to take more. Of course, silly me! I should have known I'd be penalized for working harder.

I grasp and wholly accept that paying a portion of my income out in taxes is necessary to sustain large-scale ventures for the common good that could not otherwise be accomplished. However, I have my own ideas about what "fair and reasonable" is, and it's not 40%. Having control over my earnings allows me to allocate to things that are important to me. When my calculator tells me a whopping 40% of my work week was as a volunteer for the US government, I feel cheated for not having been given a choice.

My 40% sacrificed for the greater good might even be acceptable if I was offered a selection of activities to partake in or donate to. If anyone had bothered to ask, I'd tell them I'd like that money to go to the arts or to job training programs. If they actually let me volunteer, I would tell them I'd like to give free singing lessons to underprivileged youth. Even if they let me check boxes on a form to allot my funds the way I would see fit, they might win me over. But no. All I know is that my 40% was pilfered to fund a war I didn't vote for, social security whose performance and prospects are miserable, and pet projects that I will neither be able to take part in nor do I care about.

It might be gauche to fixate on this, but money is critically important to everything you do. Not because it's money, but because it's the simplest medium for trade and communicating your values. Your level of desire to make money, save it, and where you spend it is truly how you vote. You shop organic or at a Save-A-Lot-Mart, you buy a Hummer or a Prius, you'll pay a premium for cruelty-free clothing or opt for the cheapest t-shirts you can find. You educate yourself for a higher paying job, or take what comes in the door. All are valid choices. Your money talks, and it says, "I will show you what matters to me."

As voters, a potential candidate's policies do matter. I'm baffled when I hear people say that they don't. We are not voting for buddies or motivational speakers, we are voting for people who have the power to dramatically alter the scope of our life's accomplishments by taking 40% of it away at their discretion. I don't care how cute and cuddly or fierce and ball-cracking a candidate is. Don't fall for the hype. If their policies take away more of your rights, by taking more of your dollars and you'll be told in a 700 page bill what it's been spent on, think again. You should be able to decide.

So I'm turning to you: other rational people with a mind, a heart, and a calculator. Go look at your paychecks and tax returns. Do the math. Then go look at what your money is spent on. Whatever your political party, I'd challenge you to tell me you love their plans for your 40% and you'd have it no other way. Don't give me a song and dance about how you don't mind spending on pointless or failing social programs because at least it's not the war in Iraq. Don't settle for paltry negotiations, that's how we got this writhing behemoth of spending on both sides, "I'll pay for your project if you pay for mine." Wink wink, nudge nudge. Tell me how you feel to know your precious time and money is being wasted on things you don't care about and didn't authorize. Then tell me what you do care about. Tell me where you'd like your money to be spent. Or tell initiatives like Sam Davidson's Cool People Care. Go to this site and see the lists of sponsors and partners, many of them are private donors who are trying to get the message out about what they think is important.

Tell the government to give you your money back and you'll happily and easily show them what is important. It's proven that when taxes are reduced, and therefore individual income restored, private donation and spending increase. Whether that spending is a donation to science (finding cures for diseases) or buying a bigger house (profits and job creation), your private dollar gets the vote as to what you think is most important. The best part about this is that you have a personal stake and oversight in how and where your money is spent, meaning it's done more efficiently than when a government doles it out here and there through systems where accountability and effeciency processes are near-impossible to track.

I'm just sayin'...give us a chance.

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5 Comments:

Sam Davidson said...

You make some great points here. I agree that 40% is a bit extravagant and very few of our mandatory dollars are spent where we'd like.

I, too, wish we had more choice. For one, I'd stop paying into a Social Security that I'll never see. Besides, I think I can manage my retirement better that the government can anyway.

We certainly need infrastructure to be funded...things like roads and sewers and the like. But I'd love to stop paying for a war in order to pay for better libraries of free municipal wifi or public art.

The beauty of capitalism is that it has the potential to leverage market forces for the common good. The bane of it is that this happens far too rarely. I'm working to change that.

Michael Henreckson said...

Ah, but what can we do? Unfortunately the voting choice is rarely between spending and not spending, it is between spending on this project, or that other project. Politicians have discovered that people like it when the government gives them money. It's a major weakness of democracy, and it's going to keep being a problem.

The only things I want the government to use my taxes for are projects that I can't take care of myself. Defense, roads, courts, and . . . well that's about it. I don't want them to pay my healthcare or compensate me for a natural disaster. I can make better choices on my own.

I'm all for small government and small taxes, but we are unlikely to get it back.

Milena said...

@ Sam - I was inspired by your Cool People Care concept - small steps add up, raise awareness, and lead to change. It is a simple, tested, and realistic approach to challenges that can sometimes seem insurmountable.

@ Michael Henreckson - Great question, "what can we do?" I hope you are asking in earnest, because I feel I'm personal proof that small steps toward change is possible. I'll write a post about it, but long story short, I used to support big government policies until I took an economics class and discovered how markets actually work. I was inspired by my professor who said the most effective way to produce change would be people starting blogs, writing to senators...you know, good old grassroots, word of mouth type stuff. Oh, and no weird angry ranting if someone doesn't agree - you gotta keep the peace.

living off dividends & passive income said...

either you're making too much money from your job or you don't know how to (a)fill out a W4 &/or (b)save on taxes.

or maybe a bit of everything!

I hate paying taxes. I've made it my life goal to pay as little in taxes as possible. W2 income is hit the worst with taxes. 1 reason why you should quit your job and focus on investment/business related income.

Milena said...

@ living off of dividends & passive income - thanks for the wishful thinking! I am definitely not in the top wage earner category.

You do make a good point about the w-4, which perhaps needs adjusting from last year as I got married and my income from outside my job has changed - and I'll look into that.

However, I think my overall point was to give me the choice to decide where my tax money goes, no matter what the number.

I think it's unfortunate, and a waste of human capital that many of us focus so much on tax avoidance techniques - think about all the great minds who've spent their life reducing their or other's tax bills - they could have been detecting cures for diseases instead.

I'm all about reducing/simplifying tax structures.

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