Paying Your Fair Share

Taxes are the bane of our society. Ask anyone and they will tell you they pay too much. Ask them who isn’t paying their fair share and you receive a myriad of responses ranging from the astute to the downright ridiculous. Somehow each of us believes that we are bearing an unequal burden compared to the others in our society. The natural byproduct of this thought is—how can I game the system so I only pay what I rightfully believe I should be paying (i.e. very little or nothing). We are obsessed with figuring out a way to keep Uncle Sam from screwing us.

We have become a country of people who believe they are entitled to everything, but shouldn’t have to pay for any of it. Everyone wants to make money, but they don't want to give the government one cent. We believe we have worked too hard to have the government “steal” our hard-earned cash. This comic tends to broadcast this sentiment; here is a prime example:

Being a CPA, I encounter this attitude all too often as I meet with clients. Clients want your advice on how to make their businesses more profitable with the caveat that none of those additional profits should be taxed. Or worse, clients want to be advised on additional business deductions that will benefit them personally. This leads many small business owners to purchase company-owned vehicles. These vehicles tend to be driven more often than not by their spouse or children on a regular basis; yet all the gas, insurance, and maintenance costs get paid by the business. When it comes time to discuss the personal use of the vehicle -- "it is used 100 percent for business purposes". WHATEVER.

For a wage earner like myself (salaried--so overtime is on me), I find these attitudes and practices appalling. The implication is that Mr. Business Owner works harder than you or I. By “working harder” Mr. Business Owner shouldn't have to pay taxes to the extent that you or I do.

I know enough of these business owners to know that most of them make a lot of money thanks to the hard work and dedication of their employees. DISCLOSURE: This includes my own employer--I know I am not paid (including all possible benefits) on an hourly basis anything near the amount of my hourly billing rate. It isn't Joe Schmoe in the factory or cubicle who is out on the golf course during business hours cursing his putter; but rather Mr. Business Owner out enjoying the "fruits of his labors".

Personally and professionally, I avoid preparing tax returns and all things related to taxes like most humans avoid a trip to the dentist. The reason for this is because I find it distasteful to spend my time trying to figure out tax loopholes. I realize these loopholes are legitimate, but they wouldn’t be loopholes if someone didn’t spend the time to figure out a way to get around the wording of the tax code. The tax code is thousands of pages long for the simple reason that it must be constantly revised to plug the loopholes.

So just pay your taxes and be grateful you live in a country that allows you so many freedoms; including the freedom to try and pay less in taxes than was originally intended. Be willing to pay taxes for the ability to move freely about this great country, to pay taxes for those brave souls defending you around the world who allow you to not fear a terrorist attack in your backyard, to pay taxes for the ability to complain about the pork in our federal government, and all the other wonderful things that our tax dollars pay for.

I love this country and the precepts upon which it was organized. The institution of America is perfect while Americans are not. I vow to pay my fair share. But remember, dear reader, I too pay far more than I should because YOU aren’t paying your fair share!