1040 Blues

 

First, a disclaimer: This column contains emotional rationalizations.  In other words, as a conservative, I “feel” it is my duty to warn that not everything that follows is necessarily as well thought out as a conservative column should be…

 

When then-Speaker Newt Gingrich visited my alma mater, Clemson University, some time ago, I asked our alternative (read conservative) college newspaper reporter to be sure to ask the Speaker one simple question: Can the death tax be morally justified?  The one word answer was “NO!”  This reinforced my thoughts on the happy yearly ritual which we all should have completed by the time this column is in print.

 

To put it simply, and to quote the famous blues guitarman Robert Cray, “Owwww! I hate taxes!”  Allow me to quickly address a few points.

 

First, the hierarchy of immoral taxes.  Far and away, the “estate” tax, properly referred to as the death tax, is the most insidious and truly sick of all taxes.  Its existence can only be attributed to a mindset that firmly believes that the government has an obligation and a “right” to steal and confiscate wealth.  Following a close second to the death tax in degrees of immorality is the capital gains tax.

 

Again, how can this tax be morally defended?  Wealth is put at risk, so to reward the risk, the government deems appropriate to punish those whose willingness to place their wealth at risk pays off.  Last year when I was lamenting the capital gains tax to my tax accountant, she asked me if I thought it would be fair for someone like Warren Buffett, someone making millions of dollars off his shrewd investments, to not pay taxes on investment earnings.  My reply was as simple and resolute as Speaker Gingrich’s—absolutely.  Why should risk be punished?

 

Both the death tax and the capital gains tax ignore the fact that at some point, someone worked very hard to earn the wealth which produced the gains.  This is the most disgusting aspect of the two most immoral taxes: They re-tax and re-tax yet again wealth which has been earned and already subjected to the federal government’s confiscatory income tax.

 

And then there is my other friend, FICA.  When Majority Leader Dick Armey spoke at the Alabama State GOP Winter Dinner, he opined suggested that grandchildren do not want to leave grandma and grandpa shortchanged on the Social Security to which they are entitled.  At the risk of mischaracterizing Leader Armey’s sentiments, I nonetheless submit that those who want to opt out of the Social Security system should be allowed to do so.  If one is responsible enough to save for his own retirement, via 401(k), IRA, or whatever, why should he be penalized another 15-plus percent of his income? (Remember, the employer’s “match” to the FICA payroll tax has to come from somewhere…)

 

Finally, hardly a day goes by that we do not hear about Alabama’s unfair tax structure.  Give me a copy of certain monthly newsletter, and I will find in less than 5 seconds something complaining about Alabama’s taxes being too low.  Ah well.

 

If I am guilty of making emotional, not-thought-out protestations, I am at least obliged to provide one or two suggestions.  And for those who would whine about the federal government not being able to steal “enough money” should my suggestions be enacted, I would submit that the government should make do with a lot less stolen money.  Less money would mean less waste.  Like someone said, maybe taxation without representation would have been cheaper.  And one does have to wonder how 10% is good enough for the Creator of the Universe but not for the IRS.  That being said, here we go.

 

First, eliminate the death tax.  Now.  None of this “phasing in over 43 years” non-sense. Do it Ttoday.  And nix the “marriage penalty” immediately, too.

 

Second, if the capital gains tax is so darn important to punish the “rich,” then make the formula for calculating lost wealth just as cockamamie.  If we have to be sure to levy 20% or more on gains, then losses should be “anti-taxed” at the loss plus 20% or more.  In other words, lose $100, get a tax credit of $120 (yes, tax credit, not deduction.)

 

Last, I too am of the opinion that Alabama’s taxes should be raised.  In fact, raise them a whole lot—enough to allow our great state to tell the imperial federal government that they can keep the money they have stolen from others.  No more federally redistributed stolen money would be a fair trade for no more federal taxes.  Come to think of it, we do have a really nice former national Capitol building right here in Montgomery.  And a White House, too.  Hmmmm…