By Woodrow Wilcox
In the first few days of office, several of President Obama’s nominees revealed that they had federal income tax problems. Some of them withdrew their nominations.
President Obama should take the hint. Millions of Americans have tax problems because taxes are too complex and too high. Millions more Americans have managed to pay taxes but have money problems because of the taxes that they paid.
A few years ago, a tax expert told me that only about 100 pages of the federal tax code pertains to average Americans and the rest pertains to special tax breaks for those who were smart enough and wealthy enough to lobby for favorable and special tax code sections. I believe that.
When I studied taxes in graduate school, I heard the story of how Samuel Goldwyn lobbied for special tax laws that would allow him to shift assets from Metro-Golden-Mayer movie studios to Samuel Goldwyn Studios without getting a big tax bill.
Both federal and state income tax laws are unfair to America’s workers. Here is just one example of the unfairness.
Businesses and corporations are allowed to subtract their existence expenses from their gross receipts before paying any tax. Working people are not allowed to do that. Working people must pay a tax based on their gross receipts. For most Americans, their wages are their gross receipts. But, working Americans are humans and humans do have existence expenses just as much as businesses and corporations do. Income tax laws don’t recognize and allow subtraction of human existence expenses from gross receipts. This tax system shifts an unfair share of the tax burden onto working people. With an unfair tax burden, is it any wonder that many working Americans suffer from stress, health problems, and divorce?
Here is an example of the unfairness of the income tax system on working people. A farmer or rancher can subtract the cost of food for animals from gross receipts, but a working American is not allowed to subtract food for the family from gross receipts. A business owner can subtract the cost of transportation, a hotel room, and all meals in order to attend an educational business conference. But, parents can not subtract those expenses for taking their children on an educational trip to Washington, D.C., or the Gettysburg battlefield, or any other place that might help the children to be better educated.
I can give many other examples of how federal and state income tax laws are unfair to working Americans. Just remember that there are two basic formulas for calculating taxes. Gross receipts minus existence expenses equals taxable income for the favored business and corporation class of taxpayers. But, gross receipts minus nearly nothing equals taxable income for working Americans. Can you see how the federal and state tax laws are ANTI-HUMAN and favor the non-human fictional entities of businesses and corporations?
Would President Obama tolerate federal tax laws that favor one race of people over another? I hope not. So, why does President Obama tolerate federal income tax laws that hurt every working American and favor businesses and corporations?
© 2009 Woodrow Wilcox