Why do we all pay taxes?
Ask yourself that question then think real hard about the answer.
To make it perfectly clear, what we’re talking about here is just our state and local county taxes. Not your federal taxes. Fair or unfair, federal taxes are applied the same in all states.
We pay state and county taxes to provide the funding for the expected services from our state and/or county governments. (Remember, this a discussion of what we reasonably expect. Not necessarily what we do get.)
Whether its police or fire protection, or the repair of roads and sewers and drain systems, the “services” provided for us through our state and county taxes are provided equally for all people living on Kauai. No matter their race or color or their national origin, the level of service is provided equally with no exceptions. Not even their level of income.
Based on recent media reporting, including our Garden Island newspaper, the “Institute on Taxation and Economic Policy” reports that the lower fifth of wage earners make an average of $10,200 per year and pay 15 percent of that in state and local taxes.
In comparison, the report says that the top 1 percent of wage earners make an average of $948,200 per year and pay only 8.9 percent of that in state and local taxes.
Funny thing about “percentages”. They can be used and manipulated to show whatever you want them to show. And to use “percentages” in the manner of this report is obviously an attempt of deception.
Using the same figures in the report, let’s show actual dollar amounts rather than percentages.
The 15 percent of the annual wages of $10,200 means that that wage earner pays $1530 per year in taxes.
The upper income person paying 8.9 percent of his annual wages of $948,200 means that he’s paying $84,390 per year in taxes for the same services, and for the same level of service as anyone else.
The story in TGI (Oct. 25)) states: “Hawaii’s richest make 96 times more money per year than the state’s poorest. However, the richest 1 percent do not pay 96 times more in taxes. Rather, they pay only 57 times more. “
So my question is, why should the top 1 percent of wage earners be paying 57 times more for the same services? The services provided by the county and state are provided equally to all. Except, that there are numerous special state and county programs specifically for low income wage earners which are paid for by that top 1 percent of wage earners.
This same argument can be applied to our property tax system, but that’s a slightly different subject for another discussion. Property taxes also pay for services from the county. Regardless of what our property is valued at, we all still receive the same level of service from the county.
Why not stop looking to others to pay more in taxes and put that same effort into looking at ways to cut taxes for everyone. We all know that our state and county governments are heavily padded with a tremendous amount of waste and incompetence.
We need a different “breed” of leaders in both governments. Leaders that will assure us that we are “getting what we pay for.” We need to elect leaders that will make sure that every government employee is held accountable and competent and is aware of the fact that they work for us, the taxpayers.
And, by the way, the story in TGI states: “Given that low-income people are paying 68 percent more of their income in taxes than the richest in Hawaii.” Just to clarify where this 68 percent comes from: … 15 percent is 68 percent more than 8.9 percent. Got that? Confusing, huh? Again, the intention is to deceive.
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Larry Joseph Arruda is a resident of Wailua Homesteads.
