Shut up! You don’t Pay Taxes February 1st, 2010

Most Oregonians make a sacrifice to pay taxes on their income, property, and whatever else the State threatens them with force to pay. My title was a bit sensational, and I’m not saying you don’t fork over the cash. In our system it’s proven that your voice is linked to your contribution. Big business and anyone else funding the State has a voice much louder than an individual, but what about when you take everyone in Oregon?

In Oregon our tax revenue income is highly progressive. That’s a fancy term for saying that some people pay less or more than others based on voodoo the State controls. With the recent passing of Measure 66 & 67, we’ve dug a deeper hole by increasing the amount we tax people who make more, and lowering taxes on the poor. As with all double-talk, don’t let “progressive” lure you into the idea of progress.

Why should you care? Poor folks are probably thinking “Hey, it’s free money!” Nothing is free. Your voice has been squelched because the cost of taxes are distorted. If everyone in Oregon formed a single-file line based on how much they made in Oregon, with the richest in front, here’s how it breaks down: (based on 2006 income report)

The First 2%
These folks are earning the most money in Oregon, which is usually $250,000 or more per year, and they are taxed at the highest percentage, which is now 11.5% of their income. Our constitution says that taxes should be apportioned, so they should provide roughly 2% of our net tax revenue in Oregon. Instead they foot the bill for more than 25% of all revenue. This represents the 20,000 elite class.

The Next 40%
As you move down to the upper-middle class that earns less, but still more than $30,000 they foot almost all of the remaining bill around 70%, with the most being payed by earners not quite in the $250,000 bracket.

The Rest
This is probably you. Adding up all the classes below $30,000 a year and we barely put a drop in the bucket, making up about 3% of the State tax revenue.

Am I saying that we all need to be paying higher taxes? No. I’m saying that the costs and ineffifcency of the State is completely out of control. The cost of taxes is so distorted that even folks shelling over thousands of dollars a year aren’t putting a drop into a bucket, and in return they don’t get to drink. In the eyes of our elected officials, you’re just 3%.

Your sacrifice is great, but that doesn’t make it significant. If the people held our elected officials accountable and would have a true desire to protect their interest, this would change very quickly. The top paying earners would no longer be getting what they pay for, which is power and control.

Class Envy

I’m hearing a lot of noise that boils down to envy of class. Other people are richer than you, so tax the hell out of them, right? Is this honestly you’re best reason for oppressing someone else? I’m reminded of a famous quote:

First they came for the communists, and I did not speak out – because I was not a communist;

Then they came for the trade unionists, and I did not speak out – because I was not a trade unionist;

Then they came for the Jews, and I did not speak out – because I was not a Jew;

Then they came for me – and there was no one left to speak out.

Basically, just because you’re not the target of the current tax hikes, doesn’t mean you shouldn’t fight what is unconstitutional, corrupt, and in direct conflict with liberty.