Dan Morrison – 3/5/06

This page was last updated on March 5, 2006.

Where does it stop?; Dan Morrison; Beaver County Times; March 5, 2006.

Below is a detailed critique of the subject letter.

“I’ve read a lot of letters, but the Feb. 19 letter ‘Drop the minimum wage’ was too much.

“Where does it stop? The government keeps taxing the little guy or cutting Social Security or VA benefits while the wealthy keep getting richer.”

[RWC] Why shouldn’t everyone pay taxes, including “the little guy?”

Who’s “cutting Social Security or VA benefits?” Because of the method used to index benefits, Socialist Security benefits increase faster than the overall cost of living.

Regarding the VA, spending has increased faster during the Bush administration than it did during the Clinton years. The only VA cut I’ve seen had to do with “wealthy” veterans. Veterans without disabilities who meet certain income requirements are required to pay more for their healthcare. Isn’t this what folks like Mr. Morrison want?

“They buy these giant SUVs because their financial planner tells them it will save them taxes, and to refinance their home to pay for it and deduct it on their income taxes. And don’t forget to sell your house (because its [sic] paid off) when their son/daughter goes to college and buy a new house because if you don’t have a big house payment, your kid won’t qualify for free grants and any other free money they can weasel out of the system.”

[RWC] From what I can tell from the IRS website, the tax deduction for vehicles that includes SUVs applies only to businesses, not individuals. It appears to be a means of accelerating depreciation to encourage purchases.

Here’s are some pieces of illogic in the above paragraph.

First, if a person is truly wealthy, why on Earth would he need “to refinance [his] home to pay for” the SUV? Even a luxury SUV would be “chump change” to a truly wealthy person. The fact is, a truly wealthy person probably has several vehicles.

Second, even with tax deductions it’s almost always cheaper to pay cash than to finance a purchase. Since a truly wealthy person has the cash, he’s not likely to throw away his money by financing the purchase of anything, let alone an SUV.

Third, a truly wealthy person would send his kids to expensive private schools that don’t accept “free grants and any other free money they can weasel out of the system.”

In addition to illogic, I believe that paragraph also gives us some insight as to whom Mr. Morrison believes is “wealthy” and “well-to-do.” You’ll see what I mean below.

“The well-to-do ought to be ashamed of themselves. Rather than pay their fair share, they look for every possible way that they can get out of paying.”

[RWC] Have you noticed that folks like Mr. Morrison never tell us what level of income or accumulated wealth qualifies you to be considered “wealthy” or “well-to-do?” They also never define what the “fair share” is for the “wealthy” and “well-to-do.” There is a reason. A “wealthy” and “well-to-do” person is anyone who makes more than you, no matter how much or little he makes. The “fair share” of the “wealthy” and the “well-to-do” is defined as the amount that requires you to pay no taxes.

Let’s look at how baseless the idea is that the “wealthy” and “well-to-do” don’t “pay their fair share.” If you’ve read some of my previous critiques, please be patient while I repeat what I’ve written before.

· Based on IRS data for the 2003 tax year, the top 10% of federal income taxpayers paid 66% of the total collected; the top 25% paid 84%; the top 50% paid 97%. Mr. Morrison’s “little guy” paid less than 4%.

· That same IRS data shows 32% (42.5 million people) of federal income tax filers paid zero taxes, 91% of whom earned less than $30,000. Further, many of these filers received “refundable” tax credits for taxes they never paid. This should not be confused with the refund check many of receive for overpayment of taxes. With refundable tax credits, you can actually generate a negative tax liability and have the feds send you a check even though you paid no taxes. This is a form of stealth welfare we rarely hear about.

· In addition to the 42.5 million people who filed a return but had a zero tax liability, 15 million people didn’t file a tax return at all.

· Who pays more Socialist Security taxes, an employee with a low income or an employee with a high income?

· Who pays more Medicare taxes, an employee with a low income or an employee with a high income?

· Who pays more state income taxes, a filer with a low income or a filer with a high income?

Unless you believe the “wealthy” and “well-to-do” stuff their income and wealth under their mattresses and don’t spend it, consider the following questions.

· Who pays more property taxes, the family who owns or rents an inexpensive house or the family who owns or rents an expensive house?

· Who pays more sales, excise, hotel, et cetera taxes, a family that spends little or a family that spends a lot?

· Regarding the “giant SUVs” Mr. Morrison appears to hate, who pays more in sales taxes, the guy who buys an inexpensive new or used car or the guy who buys the giant new luxury SUV? Let’s not forget the gasoline taxes for all the fuel the “giant” SUV sucks down.

· Who generates more jobs via purchases of goods and services, a family that spends little or a family that spends a lot?

Though it would likely cause Mr. Morrison to have a stroke, for the “wealthy” and “well-to-do” to pay only their “fair share,” Mr. Morrison’s “little guy” would need to start paying more taxes.

“I’ll sum this up with something I saw for the first time this year - a Santorum 2006 bumper sticker. It was on a BMW SUV.”

[RWC] Exactly how is this relevant? I still see “Kerry/Edwards 2004” bumper stickers on “giant SUVs” and these guys lost 16 months ago!