Making Taxes Fairer

The fact is that with the new tax rates instituted by President Obama, 95% of all Americans are paying a smaller tax rate on their income than at any time since the second world war. The other 5% (those making over $250,000) are paying a smaller rate than under any president except Bush -- that is they are supposed to be paying that.

But there is still a feeling that taxes are not fair. Don't get me wrong, I'm not talking about what the bottom 95% are paying. I believe that is an appropriate rate, and I think most of those people know it and pay their taxes willingly. They know the government needs the money to sustain the Republic and better the lives of all its citizens.

No, what is unfair is that many of the top 5% are not paying their fair share of the taxes. They make the most money and reap the most benefits of our free country, but do everything they can to avoid paying any taxes at all. Many of the rich hide their money in overseas tax shelters, and let the working and middle-classes bear the burden of paying taxes.

The top tax rate is around 35%. That's not a straight 35%, but 35% of money they make over a certain amount. For example, on the first $40,000 they pay the same as anyone else making $40,000. If they paid the rate they were supposed to, I wouldn't have any problem with the huge salaries they make. But they don't want to pay anything!

It's the same or even worse when we are talking about corporations. Corporations fought hard to get the same rights under the law as people have. But while they like having the same rights, they want no part of the responsibilities that go along with those rights -- like paying taxes and being socially responsible.

Many of the multi-nationals pay an effective tax of around 2.3%. Even the working class pays more than that! The corporations get away with it by declaring their expenses on the tax returns while hiding their profits in another country. Many American companies have even fixed it so they can pay less taxes by creating overseas jobs (or shipping American jobs overseas).

This is why I say the tax system is still unfair. Fortunately, President Obama is trying to do something about that unfairness. I support his efforts to tax the profits of Americans and American companies at a fair rate -- even the money they try to hide by leaving it in a foreign country or putting it in tax shelters in places like the Cayman Islands.

If these rich people and companies want to enjoy the benefits of living in America, then they must be responsible and pay their fair share of the taxes needed to support the country. Some of them are already whining they if they have to pay these taxes, they won't be able to compete on the world market against foreign companies. Nonsense!

The companies they are competing against pay even higher taxes. If there's anything that is keeping them from competing, it's not paying taxes, but it's paying for healthcare (which is provided by the government in other industrialized nations). I think they would find they are in a very good situation to compete, if they would just pay their taxes fairly and support the institution of a government-run sinfle-payer health insurance system, instead of simply whining about having to pay taxes.

Americans should support President Obama's efforts to reform the tax system and reform the health insurance system. In the end, it will benefit all Americans -- even the rich.