Taxes are Paid, Not Given

Here's a comment I agree with from my post titled Americans Give Record Amounts -- Still Paltry Totals:

Taxes are owed, not given. That's your responsibility as a citizen of a country and you do reap the benefits.

I strongly disbelieve that lower taxes would raise giving in the US. Our consumerist society would just spend the extra money on another advertised quick fix of goods made in Asia or Mexico. The problem is that most people give from what's left over after over satiating themselves with unbudgeted spending - which is, I guess, on average about 2%. Instead we should all give off the top and budget on what's left. Certainly more than half of Americans would not really notice contracting their lifestyles by 10%. As a matter of fact for those rare folks who do give 10% or more, they feel their lifestyle is improved by giving more away (as many entries on this blog have pointed out in the past).

I agree with this comment on several fronts:

1. Taxes are paid, they aren't given. A gift is something you donate of your own free will. Anyone out there "giving" taxes of their own free will? Or maybe a better question -- anyone out there purposely "giving" more taxes than what the law says you owe? I didn't think so.

2. There are arguments both for and against the "lower taxes increases giving" debate, but I do agree that most people spend up to (and often past) their capacity to earn. So if they earn/save more, most will simply spend more.

3. I think we should give off the top too. (Give on gross pay, not net.)

4. I certainly feel that my lifestyle has been improved by giving. And the same holds true for other I know who give often.

Comments

[Ryan]

Something to consider is your tax rate. For example, in Denmark taxes are up to 59% + 10% for Social security + a 25% value added tax (VAT) on all purchases and services. So at this tax rate you are taking home 23.25%. Giving 10% off the gross would only leave you with 13.25%.

[Susan]

Ryan,

You make a good point. Some of us American's are probably spoiled with our low tax rates so it's easy for us to tell others to give 10%. Considering state, local, federal, property, home, sales, gasoline taxes, Social security, medicaire, I guess our taxes are probably high too, but not that high! And not to mention we actually have to pay for health care insurance here.