Fairness

Would you want to watch a football game where one team could get a first down by only gaining 5 yards, while the other team had to gain 10? How about if one team could score 6 points by crossing the 20-yard line, where the other team had to go all the way to the end zone?Perhaps there would be more scoring in basketball if one team’s goal was only 8 feet off the floor, while the other’s was 10 feet high. That would not be interesting or very fair, but that mirrors what is going on in today’s tax legislation. Some people have every cent of earnings taxed as wages, salary and tips. These people have every cent of income subject to FICA and Medicare withholding, while others can receive income in the form of stock options, dividends, interest, capital gains and carry-forward. Those forms of income are not subject to either FICA or Medicare deductions. Furthermore, these forms of income are taxed at lower rates than equal earnings in the form of salary, wages and tips. Finally not all salary, wages and tips are subject to FICA and Medicare tax. If one is fortunate enough to earn large enough salaries, earn high enough wages or receive an excessive amount of tips, the balance over a certain amount is not subject to FICA or Medicare. The 8-foot basket in this game is the various loopholes that are available for those fortunate enough to be in the top 10 percent of income earners. Unlike the other 90 percent, these “taxpayers” have a wide variety of ways to avoid paying income tax on a sizable portion of their income. Fairness is not the only issue raised by this disparity. The problem we all should be most concerned with is the effect of this disparity on the marketplace. This disparity robs the marketplace of potential customers. This disparity reduces demand for products and services. This reduced demand ultimately reduces the need for more employees. And the reduced need for more employees reduces tax revenue, which is needed to provide the services we need from our city, state and federal governments. For those who think government is too big, tell me which of the services you personally receive from city, state and local government that you are willing to do without. Don’t tell me to cut services that you may not take advantage of or services others than yourself may receive; tell me which services you or your family personally have received that you are willing to give up. Both teams play on a field of 100 yards, and both teams have to advance 10 yards for a first down. Both teams have to score goals in baskets that are 10 feet off the floor. It should not be any different in other parts of our lives. We need to put an end to attempts by those who, through privilege, power, wealth, position or any other means try to lower the basket or shorten the goal line for themselves to the detriment of everyone else. (Note: This was originally published in the Nashville Tennessean on December 10, 2011.