By Matthew Michaels
Even though it was revealed that Donald Trump did not pay taxes for several years, many voters still support him. (Courtesy of Flickr)
“That makes me smart.”
This was Donald Trump’s response to Hillary Clinton’s accusation during the first presidential debate that he did not pay federal taxes for many years. By not paying taxes, the Republican nominee failed to perform one of the most basic civic duties.
Instead of a public upheaval, Trump’s comment earned him support from the live debate audience and citizens nationwide. People like Trump exemplify a twisted American dream, where you can contribute nothing in taxes but take full advantage of public resources created with others’ taxes.
Trump and his supporters have this maligned view that they are going to “Make America Great Again,” like in the 1950s when the nation was prosperous and marginalized groups were discriminated against in the boundaries of social acceptability. Trump fails to mention that, according to Bloomberg, the highest individual tax rate during that era was 92 percent, compared to the sub-40 percent level it has stood for the past few decades.
All earned income does not belong to the individual in America. Contributing members of society do not just work hard, they pay taxes to fund common goods, including the public schools attended by 90 percent of grade-school children as per the U.S. Department of Education. 86 percent of Americans drive to work using public roads, according to the 2015 census while public transportation accounts for 5.2 percent of all transportation. Retirees benefit from publicly funded Medicare and Social Security. Money accumulated from taxes goes to funding necessary advancements in science, medicine and technology that make our lives easier and better.
Perhaps most importantly, without taxes we could not protect America from enemies, both domestic and foreign. There would be no way to fund a military, police force, fire department or diplomats.
Trump most likely pays for a whole team of accountants to do his taxes, and I would not be surprised if one person’s main occupation is to make sure Trump pays as little as possible. Wealthier citizens like Trump can often move assets into special accounts and hire the brightest accountants to find special loopholes to avoid paying their share of taxes, not to mention the fact that corporations and big donors like Trump use financial leverage to help write the tax code.
There is a lot of outrage about companies outsourcing jobs overseas, but there is not a similar reaction about companies that use tax havens and store their wealth outside the United States to avoid being taxed. Even more egregious is how many corporations who already pay almost nothing in taxes receive subsidies that come out of the federal budget supplied by taxpayers’ money.
We must see taxes not as an unwarranted burden, but as a responsible investment in ourselves and our community. I do not need to dust off some Hobbes, Locke or Rousseau to show that taxes, though annoying, are a responsibility of all members of society.
As Vanessa Williamson of the New York Times notes, twice as many Americans believe the Apollo 11 moon landing was faked, than the three percent who do not think paying a fair share of tax is a civic duty.
Trump’s comments also remind us how far out of tune he is with the average American. Since almost everyone pays taxes, he also indirectly inferred that the rest of us are stupid for not taking advantage of tax loopholes, when he can only do so because of his wealth and his accountants that so few can afford.
The idea of a billionaire not paying taxes is not about intelligence, but rather unethical selfishness. Taxes would be much less burdensome on the common man if wealthy individuals and large corporations paid a share.
Matthew Michaels, GSB ’17, is a marketing major from Hightstown, New Jersey.
Matthew –
You do need to research this topic a more thoroughly prior to publishing a column.
Over 45% of households pay no Federal income tax (some get payments/credits)
The top 1 % of income earners pay over 20% over the expenses of the Federal government.
Mr Trump appears to be following the laws our country has agreed upon.
Warren Buffet has criticized the tax structure of our country noting that he pays a lower percentage in taxes than his secretary – but that is because he declines to receive income but rather takes earnings through stock market gain taxed at a lower rate- again, following the laws of our nation.
Corporate taxes in the US are high compared to the rest of the world.
I agree that we should all contribute to the tax burden. The focus might be in elevating the economic prospects of the 45+% who pay no taxes to allow them to have a stake in this nation.
“…did not pay federal taxes… contribute nothing in taxes…”
Come on, really? He did not pay federal INCOME tax for many years. That does not mean he paid nothing in taxes. There are many other taxes to pay besides federal income tax.
But even barring this point, do you actually believe what you’re saying or do you just not like Trump? Be honest. I am assuming you are a dependent, which means you must make $5700 in a year to have to file a federal income tax. Have you filed taxes voluntarily every year since you turned 16, even though the law did not require you to do so? Who in their right mind would? NOBODY pays more taxes than they have to, and it does not make them unpatriotic. We’re not talking about tax evasion here. We’re not even talking about obscure or unethical “legal loopholes” like hiding money in offshore accounts or passing it around through shell companies. Losses rolling over from year to year is literally tax law 101. I had an internship at a small tax preparation place and we did this exact thing for thousands of regular middle-class people every year. You don’t even need a lawyer to do it, just type your gains and losses into fucking Turbotax and the amount you need to pay comes up.
Any accounting major would laugh at you for posting this incredibly uninformed opinion. This is probably why Trump didn’t want to release his tax returns, because it would just empower thousands of uneducated armchair accountants to attack him for something they do not understand.
Trump uses loses just like all business people, which is totally legal to offset taxes. But don’t mention that he employs thousands of people in many of his businesses. He pays millions in other taxes as well. I guess it’s OK for the Clintons to hide their wealth in the Clinton Foundation in Canada, without paying any taxes on all the funds they have received from the worst regimes in the world so these horrible people can receive favors from Hillary, like the Russian Businessman to whom the administration sold a huge stake in our uranium deposits. The Clintons are evil and dishonest people that only care about their own wealth. If Hillary wins this election our great country is doomed.