On the eve of tax day, about half of Americans say they feel their federal taxes are fair, according to an Associated Press story.

Which is less surprising when put in this context: about half of American households paid no federal income taxes at all in 2009. Either their incomes were too low or they had enough deductions and credits to wipe out their tax liability.

So, if you are not paying any tax, what’s not to like about federal tax rates?

What’s more, the Census Bureau reports that nearly half of Americans, 150 million people, receive at least one form of direct federal support from the federal government.

That means they either get food stamps, Veterans Administration benefits, Medicaid, Social Security or Medicare.

An estimated three quarters of households get at least one major tax break, like a deduction for mortgage interest or a tax break for employer-provided health care. A majority of those get both breaks.

Advertisement

Millions of Americans also work in industries that receive either tax supports or large tax deductions, from farmers to oil refiners. And a vast array of industries spend millions of dollars a year to protect and expand their favorable tax status.

All of which explains the daunting task before Congress and the president in trying to curb the nation’s budget deficit.

We have a country full of people and industries that depend, either directly or indirectly, upon federal tax breaks or support, all convinced their piece of the federal pie is completely justified.

At the same time, we realize the truth, at least in abstract, that the nation cannot continue to borrow 40 cents on every dollar it spends. And, in a larger sense, a majority of Americans support the idea that federal spending should be cut and “tax loopholes” eliminated.

Yet, a University of Chicago poll also shows that 74 percent of Americans favor more spending on education, 60 percent want more spent on health care, and 57 percent feel Social Security benefits should be more generous.

Those are probably Americans unwilling to countenance cutting those programs.

Advertisement

The only realistic hope of finding our way through this mess may be spreading the pain of cutting spending or increasing taxes as widely as possible.

There is an old expression that “many hands make light work.” Americans can probably support, or even rally around, a plan that calls for shared sacrifice from all.

It seems impossible to close this massive gap with cost cutting alone, just as it will be impossible to solve it with tax increases for the wealthy alone.

Already, the top 10 percent of wage earners in this country pay 73 percent of the taxes collected by the federal government.

Despite the recent recession, this is still one of the wealthiest countries in the world.

What we increasingly have, however, is a shortage of courageous leadership — on either side of the aisle — to bridge the divide and solve problems in a non-partisan way.

Advertisement

The coming year will show whether Americans, and their leaders, can find a way to accept shared sacrifice to meet a grave challenge.

If we cannot, the way ahead is dark indeed.

rrhoades@sunjournal.com

The opinions expressed in this column reflect the views of the ownership and editorial board.


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.

filed under: