John Scalzi: Tax Frenzies and How to Hose Them Down
http://whatever.scalzi.com/2010/09/26/tax-frenzies-and-how-to-hose-them-down/
A question in e-mail based on all the recent rich people feeling not rich nonsense, and the associated commentary online:
Why is it that the people freaking out the most about taxes on the rich are the ones who dont seem to know how the tax code works?
The answer is in the question: Because they dont know how the tax code works. The major failing seems to be an incomprehension regarding marginal tax rates, but people also seem to fall down on the matter of taxable income vs. gross income (i.e. how deductions can work for you!), how to apply tax credits, and other various and fairly basic aspects of the tax code here in the US.
If you dont know that stuff if you basically wander through your life thinking the government taxes all of your income based on the highest possible percentage then I suppose its no wonder you freak out. But it also kind of makes you the financial equivalent of the people who think that Darwin said we are all descended from monkeys, or that the Bible says God helps those who help themselves. In short, it means youre a bit ignorant. You should stop being that. Its easily correctable. In any event, at some point in time, real live grown-ups should understand the concept of marginal rates. Its not that difficult to grasp.
There is another answer as well, which can be paired with the above or stand on its own, and its that theres a certain sort of person who believes that all taxation (or all taxation outside of one or two very specific things of which they approve) is theft. Naturally that sort of person will fly to the defense of any who bleat about their taxes being too high, even if in point of fact, the wealthy in the US are currently being taxed at historically low rates (but theyre still too high!).
I really dont know what you do about the taxes are theft crowd, except possibly enter a gambling pool regarding just how long after their no-tax utopia comes true that their generally white, generally entitled, generally soft and pudgy asses are turned into thin strips of Objectivist Jerky by the sort of pitiless sociopath who is actually prepped and ready to live in the world that logically follows these peoples fondest desires. Sorry, guys. I know you all thought you were going to be one of those paying a nickel for your cigarettes in Galt Gulch. Thatll be a fine last thought for you as the starving remnants of the society of takers closes in with their flensing tools.
<snip>