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n2doc

(47,953 posts)
Sat Oct 5, 2013, 04:37 PM Oct 2013

The US Has Low Taxes — So Why Do People Feel Ripped Off?

Holland: And does this help explain why we have a very low tax burden overall, relative to other wealthy countries, but a lot of Americans feel that they’re being taxed to death?

Johnston: Well, one of the reasons some Americans feel they’re being taxed to death is that if you add up our taxes, which are low compared to other modern countries, and then you add in private expenditures for things the tax system pays for in other countries — a lot of our health care costs, higher education costs, admissions and fees and tickets and licenses for a lot of things — lo and behold, we end up being a relatively high-tax country. But it depends on how you analyze the data.

And let me give you one killer figure: We spend so much money on our health care in this country — or as I prefer to think of it, sick care in this country — that for every dollar that the other 33 modern economies spend for universal coverage, we spend $2.64. And this is done using something called “purchasing parity dollars,” so they’re truly comparable. So we spend $2.64 per person and still have almost 50 million people with no coverage and 30 million with limited coverage, and these other countries spend far less with universal coverage.

Here’s how much that costs: In the year 2010, if we had had the French health care system, which is one of the most expensive in the world, it would have provided universal coverage and it also would have saved us so much money that we could have eliminated the individual income tax that year and all else would have been equal. Our excess health care costs above those of the French were a little over 6 percent of the economy and the income tax in 2010 brought in about 6 percent of the economy.

more

http://billmoyers.com/2013/10/03/the-us-has-low-taxes-so-why-do-people-feel-ripped-off/

One word: Military

34 replies = new reply since forum marked as read
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The US Has Low Taxes — So Why Do People Feel Ripped Off? (Original Post) n2doc Oct 2013 OP
We are OVERTAXED. The middle class AND the poor are the ones paying the taxes. The rich pay $0 Th1onein Oct 2013 #1
I think he means the idiots in the Tea Party. Rex Oct 2013 #7
We need to increase import taxes and tariffs and lower income taxes. JDPriestly Oct 2013 #11
Hit the nail on the head, JDPriestly! Th1onein Oct 2013 #19
Most excellent post BrotherIvan Oct 2013 #34
Cuz the country is run by Scam artists and Snake oil salesman. Thanks for posting. nt adirondacker Oct 2013 #2
We get very little for our money. truebluegreen Oct 2013 #3
Hey, now! We get the BEST bullshit money can buy. nt valerief Oct 2013 #9
We have our winner. Brigid Oct 2013 #13
We keep letting infrastructure slip... awoke_in_2003 Oct 2013 #20
Because a decades long well financed propaganda campaign Agnosticsherbet Oct 2013 #4
In Washington state the bottom 20% pay 15% of their income in state tax. The top 1%? 3%. lumberjack_jeff Oct 2013 #5
Because they are fed constant crap from Hate radio Rex Oct 2013 #6
Yep, at least 60% of discretionary tax revenue goes to fucking WAR shit. nt valerief Oct 2013 #8
Ronald Raygun kydo Oct 2013 #10
Ah the good ole days of $800.00 toilet seats and $300.00 hammers. It was so simple then. nt adirondacker Oct 2013 #16
And why is it that churches do not pay taxes? tecelote Oct 2013 #12
I believe Europeans on average pay far higher taxes than we do. SheilaT Oct 2013 #14
"It's possible that the ACA, better known as Obamacare, will open people's eyes"... awoke_in_2003 Oct 2013 #21
unfortunately, you are right. SheilaT Oct 2013 #27
When it starts becoming common knowledge... awoke_in_2003 Oct 2013 #28
We overpay private companies for things that DirkGently Oct 2013 #15
pathological individualism? La Lioness Priyanka Oct 2013 #17
Not a lot to show for the taxes we pay. Autumn Oct 2013 #18
What's funny is how many Tea Party types can grasp the idea of "Do It Yourself".... Spitfire of ATJ Oct 2013 #22
this is spot on! green917 Oct 2013 #23
+1 nt Live and Learn Oct 2013 #26
I keep on hoping that there really is SheilaT Oct 2013 #30
Because we are ripped off. We know it and some of us can even tell you where Egalitarian Thug Oct 2013 #24
ROI, we don't get much that is tangible from our taxes and our safety net is tattered and weak. TheKentuckian Oct 2013 #25
A lot of ignorance about past taxation is a part... JHB Oct 2013 #29
The psychology of misplaced blame and right wing propaganda. AdHocSolver Oct 2013 #31
It's because of Reagan. Jamaal510 Oct 2013 #32
I feel ripped off because 57 cents out of every tax dollar is going to protect corporate profits. Scuba Oct 2013 #33

Th1onein

(8,514 posts)
1. We are OVERTAXED. The middle class AND the poor are the ones paying the taxes. The rich pay $0
Sat Oct 5, 2013, 05:02 PM
Oct 2013

Oh, and the corporations pay NOTHING.

And, finally, we get NOTHING for the money that we pay in. The rich reap it ALL. From our pockets, to the government, and into the pockets of the rich. WHEN are we going to get to use some of the money that WE pay in?

 

Rex

(65,616 posts)
7. I think he means the idiots in the Tea Party.
Sat Oct 5, 2013, 05:30 PM
Oct 2013

Yeah, we on DU understand the depths of the tax waste in this country, but Tea-GOPukers are still fighting the British.

JDPriestly

(57,936 posts)
11. We need to increase import taxes and tariffs and lower income taxes.
Sat Oct 5, 2013, 06:31 PM
Oct 2013

Taxing work is counterproductive. Taxing goods we buy from other countries, other economies makes sense. It balances our trade expenditures with our sales to other countries. And it help build a strong economy based on labor.

In some parts of Europe at one time, they based the amount of taxes to be paid on a castle or a house on the number of windows in the building.

What do you suppose happened? Yes. People let buildings with lots of windows go to ruins and built buildings with fewer windows.

We respond to the tax system in our country. If you tax labor, there is an incentive to reduce the numbers of laborers. It makes work efficient when you bring in lots of expensive machinery to replace the humans, but your tax system is shot because you relied too much on one aspect of your economy for tax revenue.

I am not suggesting completely doing away with the income tax. I am suggesting balancing it with some other taxes like import taxes.

You don't believe me?

Here goes:

The window tax was a property tax based on the number of windows in a house. It was a significant social, cultural, and architectural force in England, France and Scotland during the 18th and 19th centuries. To avoid the tax some houses from the period can be seen to have bricked-up window-spaces (ready to be glazed or reglazed at a later date), as a result of the tax. It was introduced in 1696 and was repealed in 1851, 156 years after first being introduced. Spain and France both had window taxes as well for similar reasons.

http://en.wikipedia.org/wiki/Window_tax


 

truebluegreen

(9,033 posts)
3. We get very little for our money.
Sat Oct 5, 2013, 05:13 PM
Oct 2013

Infrastructure, education, health care--we get to pay for those things out of pocket or do without.

We have a boffo military though, keeping us safe to live under bridges.

Agnosticsherbet

(11,619 posts)
4. Because a decades long well financed propaganda campaign
Sat Oct 5, 2013, 05:24 PM
Oct 2013

designed to make people believe a lie has ben very successful.

 

lumberjack_jeff

(33,224 posts)
5. In Washington state the bottom 20% pay 15% of their income in state tax. The top 1%? 3%.
Sat Oct 5, 2013, 05:27 PM
Oct 2013

Every dollar the convenience store clerk earns is taxed 5x higher than the next dollar that Bill Gates will earn.

The great mass of voters in my state ARE overtaxed. Sadly, they're not bright enough to figure out why.

 

Rex

(65,616 posts)
6. Because they are fed constant crap from Hate radio
Sat Oct 5, 2013, 05:29 PM
Oct 2013

and the GOP. The Tea Baggers are the poster children of tax/govt hatred and ignorance. Of course that is only at the surface level of taxation in this country, or it is for them. I don't think any of them even understand the basics of the tax code.

They want to go back to the Gold Standard, but have no idea what that is.

kydo

(2,679 posts)
10. Ronald Raygun
Sat Oct 5, 2013, 06:23 PM
Oct 2013

And Lee Asswater. They brought you the welfare queen and lots of other bullshit to win elections. They convinced white middle class that black people and government bureaucracy is wasting your tax dollars.

 

SheilaT

(23,156 posts)
14. I believe Europeans on average pay far higher taxes than we do.
Sat Oct 5, 2013, 06:42 PM
Oct 2013

Yeah, there are real disparities here, and the upper levels pay a far lower percentage of their income in taxes, even though they complain mightily about the dollar amount.

The problem is that starting back with St. Ronald of Hollywood, it was put out that government is the problem, government is bad, you can spend the money more wisely, and welfare queens are driving Cadillacs while honest citizens can't afford what they want. It's been hammered in, over and over, until too many people believe it.

It's possible that the ACA, better known as Obamacare, will open people's eyes. But I suspect that far too many who've been drinking the koolaid and voting Republican all along, will be very happy with their new health care, and continue to vote for the person with the R after the name.

I wish we could selectively keep such people from enrolling, at least for the first year, so they would finally see exactly what it's all about, exactly what they've voted for, exactly what they want to deny everyone else. Sadly, we'll enroll all who are entitled to enroll.

 

awoke_in_2003

(34,582 posts)
21. "It's possible that the ACA, better known as Obamacare, will open people's eyes"...
Sat Oct 5, 2013, 07:25 PM
Oct 2013

you are talking about the same people who made protest signs saying "keep the government out of my medicare". I hold little hope for a good portion of this country.

 

SheilaT

(23,156 posts)
27. unfortunately, you are right.
Sat Oct 5, 2013, 09:28 PM
Oct 2013

I wish I could respond with great heat and verbosity to prove you wrong, but I can't.

I've said in a few other threads that too many of the people who are discovering that to their amazement this new health insurance thing is going to be vastly cheaper and at the same time better than what they had before, if they weren't actually uninsured before, too many of those people have been blithely voting Republican for too long. They just don't get it.

 

awoke_in_2003

(34,582 posts)
28. When it starts becoming common knowledge...
Sat Oct 5, 2013, 09:33 PM
Oct 2013

that it will be a money saver to most Americans the repukes will start crowing about how it is modeled on RomneyCare. Yes, I know, I am a bit cynical.

DirkGently

(12,151 posts)
15. We overpay private companies for things that
Sat Oct 5, 2013, 06:44 PM
Oct 2013

government can do better. Toll roads, employer-provided health insurance, private education, expensive public universities.

This is the reason for the decades-long campaign to convince people that government "can't do anything / is giving MY money to THOSE people."

Without that thesis, people might start asking why we pay out-of-pocket for for-profit industries to do a worse job than we (in our role as our own government) can do better ourselves.

 

Spitfire of ATJ

(32,723 posts)
22. What's funny is how many Tea Party types can grasp the idea of "Do It Yourself"....
Sat Oct 5, 2013, 07:25 PM
Oct 2013

But they want the government to hire profit sucking, crooked private sector contractors for even the basics, because they actually believe it will save money.

green917

(442 posts)
23. this is spot on!
Sat Oct 5, 2013, 07:33 PM
Oct 2013

I used to argue with my father (a crazy financial republican) about taxes here all the time and I finally ended the argument about 2 years ago with the following:

I commented that, I would rather live in Finland, being in the income bracket that I am in here. he, of course, freaked out and said something to the effect of, " are you insane? they pay 40% in taxes there!"
I replied thusly, " yes dad, they do. but let's look at the numbers. i made about $55,000 last year and paid, approximately, 29% of my income in taxes. therefore, by not living in Finland, I saved a little more than $6,000." he of course, jumped in, " see, I was right!" to which I replied, " yeah dad, but that's only half of the equation! You see, I also spent $11,000 on health insurance last year and paid off a $15,000 student loan, both of which would have been non-applicable were ia resident of Finland because health care and secondary education are both covered by that 40% tax you pointed out they pay. and that's not to mention that they score higher than us in every single measure that is said to make a country healthy and viable from infant mortality and standard of living rates to income equality and other economic indicators so, in summation, dad, you're damned right I would want to live in Finland!"

 

SheilaT

(23,156 posts)
30. I keep on hoping that there really is
Sat Oct 5, 2013, 09:49 PM
Oct 2013

reincarnation. I've already decided that in my next life I hope I get to be born in Finland, and remain a citizen there.

 

Egalitarian Thug

(12,448 posts)
24. Because we are ripped off. We know it and some of us can even tell you where
Sat Oct 5, 2013, 07:33 PM
Oct 2013

the proceeds of this monumental rip off are going and to whom.

As usual Bill Moyers brings it home in style.

TheKentuckian

(25,029 posts)
25. ROI, we don't get much that is tangible from our taxes and our safety net is tattered and weak.
Sat Oct 5, 2013, 08:53 PM
Oct 2013

Pretty much taxes are for military expenditures, the security state, redistributing wealth to the top and to the corporations, and a few pennies for the poorest of the poor that is woefully inadequate to the point of seeming ineffective despite the reality of doing a lot with very little.

Bridges are falling down, potholes are plentiful, some folks have brownouts and rolling blackouts, there are ever increasing tolls, and it goes on and on in full view.

You add the right wing drumbeat and hate media propping up the wealthy and it leaves little choice to feel that way, regardless of politics because we actually do get very little for our investment and it is made to feel worse by the media who also helps the right wing by painting a bogus picture of what is spent and how. This false image is then magnified by the ongoing and open buffoonery of our elected officials. Who trusts these idiots? No one. It is no large leap that the works are being screwed and waste, fraud, and abuse are commonplace.

JHB

(37,162 posts)
29. A lot of ignorance about past taxation is a part...
Sat Oct 5, 2013, 09:40 PM
Oct 2013

...not just rates but the way it was distributed.

In 1955 there were 24 tax brackets. Adjusting for inflation:

16 of them affected incomes over $250,000.

11 of those affected incomes over $500,000

The top rate kicked in for income a bit over $3.5 million/year.

From Reagan to relatively recently there were no brackets that kicked in over $400,000, and now only one does. And the rates on the upper brackets are a fraction of what they used to be. All progressivity on very high incomes was eliminated three decades ago and hasn't come back.

AdHocSolver

(2,561 posts)
31. The psychology of misplaced blame and right wing propaganda.
Sun Oct 6, 2013, 01:50 AM
Oct 2013

A large number of Americans are unhappy with their lives.

They dislike their jobs (if they are fortunate to have a job), feel unappreciated, inadequately paid, worried about the future, and feel unable to do anything about it.

They grasp at any argument that tells them that it is not their fault, that they are victims, and that if life were only fair, they would be wealthy, healthy, and wise.

They don't dare criticize their employers, their bankers, or their health insurers, for fear of retaliation.

So they blame "government" for not making things "right". They are fed propaganda over and over again that government takes their money, in the form of taxes, and gives it to lazy people, illegal immigrants, and "moochers" who lead better lifestyles than they do.

They are told that the "private" sector is more "efficient" (another meaningless buzz word like "free trade&quot even though the "private", corporate sector extracts a greater financial burden on them in the form of high prices, huge profits, and low wages.

This corporate levied financial burden is equivalent to a high TAX, but in contrast to countries with high government taxes, which also provide low cost universal health care, low cost or free education, and are not taxing their people to support a huge military system, people in those other countries enjoy a widespread quality of lifestyle not attained by most Americans.

So, for what they pay overall, Americans are getting less for what they spend than in other "advanced" countries.

Politicians, corporate vultures, and religious zealots have supported right wing think tanks and right wing media to develop and spread concepts that play on people's fears and dissatisfaction. These concepts (or "memes&quot are repeated ad nauseam on talk radio, in newspapers and magazines, in political ads, on TV "news" shows, and by politicians.

These right wing concepts (such as government is "bad", corporations (i.e., the so-called, mislabelled "private sector&quot is "good&quot is repeated so often so many places that no amount of reality will cure these victims of their misconceptions. The right wing has effectively immunized a majority of their followers from the truth.

Those thoroughly infected with the right wing themes are at this stage of their infection most likely incurable.

However, there are a number of people who are agreeable to change their political positions once the right wing menace threatens them in some way.

The secret of converting "moderates" away from right wing propaganda so as to embrace reality requires developing dialogue that relates the facts to moderates, but it has to be done in a non-threatening, and non-belittling way.

Moderates should learn from the methodology of the right wing. Their "think tanks" are mislabelled. There is little "thought" or reasoning behind their propaganda. It is all about marketing techniques.

Liberal "think tanks" should spend less time debating policy, and spend more time evaluating the effectiveness of presentation using focus groups.

While "liberals" attempt to explain their side with incomprehensible, and often irrelevant, graphs, charts, and economic verbiage, the right wing sells their policies with snappy advertisements like those used to sell fast food, breakfast cereal, cell phones, or prescription medicine.

While liberals appeal to reason to change minds, the right wing uses techniques that motivate people to action for their cause.

The real reason for the 2010 right wing wins was that they used tried and true marketing techniques to motivate voters to their cause and the Democrats...

Jamaal510

(10,893 posts)
32. It's because of Reagan.
Sun Oct 6, 2013, 02:11 AM
Oct 2013

Up until his presidency, Republicans and conservatives were cool with taxing the rich (see Eisenhower's 90% top tax rate). But he was the chief architect of the trickle-down scam that continues to plague the country today. He capitalized on resentment of middle-class and poor conservatives for everyone else, and used it to push an extremely regressive economic agenda.

 

Scuba

(53,475 posts)
33. I feel ripped off because 57 cents out of every tax dollar is going to protect corporate profits.
Sun Oct 6, 2013, 08:31 AM
Oct 2013
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