Our Real National Pastime – Tom Rossi

Here in the United States, whining about taxes is probably more popular than all of the major sports, combined. Forget about baseball – tax-whining is our true national pastime.

What’s amazing is that the distribution of whining, like so many things, is so illogical. In fact, tax-whining is positively correlated with a person’s or a corporation’s wealth. So, the more you have, the more you whine. It’s sort of like a team in Major League Baseball complaining that, in their run up to winning the World Series, too many strikes were called on their batters.

The favorite topic of tax-whiners is that the top income brackets pay all of the taxes while the bottom half of the so-called “middle class” (nobody want to be labelled “poor”) pays nothing. They love to go on about the 47% – the “takers.” That number was made up, by the way.

As justification, the tax-whiners always point to one statistic… the statistic that makes them look right. Here it is, in graph form:

But this is only part of the tax story. People pay taxes on much more than income. They pay taxes on property, gasoline, and sales tax on purchases of goods. The truth is that, when you add all those taxes up, the bottom 20% of earners pay about 17% of their incomes in taxes, while the top 20% of earners pay about 29%. That’s a significant difference, and I’m sure it frustrates those who live inside a calculator.

But it’s nowhere near the claims that are made, usually by Republicans and Tea Party types. And we should pay close attention to the effect that these percentages have on people. For someone who makes $250,000 per year (for example) paying 29% in taxes means that they are left with $177,500 to live on.

For someone earning 13,000 per year, paying 17% in taxes means that they are left with $10,790 to live on. That’s less per year than what the $250,000 earner has left per month. And, as I’ve argued before, the more money a person has, the more benefits he or she gets from taxes.

To the whiners, I say this: I realized that the prospect of paying an extra $500, or so, in taxes for a year might mean you have to put off buying a house for another month. Or it might mean that your kids actually have to go to public school. Or it might mean you have to buy the Lexus GS instead of the LS. But a difference of even $100 to a family on the receiving end of this shotgun economy might mean that their kids get “new” shoes (maybe from the Salvation Army) when their toes poke out through a hole. Or it might mean that they can afford to heat the house to above 55° in the winter. Or it might mean that they can pay the electric bill for another month or two.

These are two different worlds. What I’m talking about is called “Marginal Utility Theory,” and it’s a part of standard, old-fashioned, neo-classical economic theory. It just gets ignored because it is essentially an “inconvenient truth.” Without putting you to sleep, what this boils down to is that $1000 means nothing to the well-being of a millionaire, but it could mean the world to a poor person, or a poor person’s children.

President Obama and others are in the process of attempting to re-balance the tax code which has, in recent decades, come to favor the rich and the corporations. And now, we have an influx of veterans that often have an incredibly hard time finding a good job – or sometimes any job, for that matter. This is happening while government programs are being cut left and right.

If you really want to “support our troops,” if you are really “pro-life,” then realize that your tax dollars are helping people who really need it. And their health and well-being will come back to benefit you in ways you may not be able to imagine.

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

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An Imaginary Author’s Co-op

There are a lot of authors out there, a lot of books, and a lot of noise on the Internet. Each author racks his/her brain for an original idea to blaze a trail in one social media or another that will create the elusive momentum that will propel a series of book sales, of movie options, and publicity.

That’s a lot of work for one person, especially one who would prefer to sit behind a computer screen creating new characters, plots and worlds. Even more so, that comes after possibly a full time job, helping the kids with homework, paying the bills, working out…

I believe I spend an hour a day blogging, tweeting, answering emails (as an author). I often do this with ease; either early in the morning, during a lunch break, or after my boys are in bed. But I am giving seven hours a week to promote myself and if I had more time, I would delve into Facebook, Goodreads, redesign my website, participate on other people’s blogs and forums.

What if I spent that time promoting not only myself but also five other authors, all writing within the same genre? What if we parceled out each social media forum, not exclusively, but the person in charge of Twitter, for example, would delve deeper into how best to leverage this medium. We would all tweet, retweet, dm, and build our own twitter following, but the cross-pollination would make it six times as visible.

And then, we would offer extra time and focus when someone’s new book is published. We would write reviews on Amazon, on their website, interview them on our own blogs, and recommend them to friends. I recently went to a party and could have given my book-loving friend a book. She has read mine, but why not then give a copy from someone in my co-op. 

It demands honesty and trust. We are all desperate to ensure our own success and need to rein in the tempting opportunity to promote ourselves to the detriment of others. A ‘friend’ stood up at a venue where I spoke, told everyone how great The Accidental Activist is, and how it reminds him of his novel… and he then went on to pitch his own.

One of the best events I participated in was a panel set up by the historical fiction author, JoAnn Smith Ainsworth. There were four authors and we all flowed in effortlessly. We had decided that Christine London, a romance author, would be our informal facilitator, and probably no one in the audience noticed as she occasionally directed a question to an author who had been quiet for a while. The audience was considerably bigger than it would have been if it was only me appearing – there were fans of all genres.

I spent almost half my life on kibbutz and when we all worked for each other the synergy was amazing. Is it possible to replicate such mutual support in the world of promotion, sales, and money?

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Alon Shalev writes social justice-themed novels and YA epic fantasy. He swears there is a connection. His latest books include: Unwanted Heroes and At The Walls Of Galbrieth. Alon tweets at @alonshalevsf and @elfwriter.  

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It’s Not About The Money

When I came to the US, I was told there are three subjects you don’t broach at a dinner, party or other social gathering: politics, money and eating habits. I don’t excel in small talk. I find it difficult to hear about the health issues of someone’s (who I might not see for a few months) great aunt (who I’ve never met). I crave meaningful interactions.

I can talk sports, but not baseball or American football – English soccer or cricket anyone? And I wonder why no one talks to me at parties? I love talking politics and can pass an evening enjoyably with an intelligent person further left or right of my opinion. But apparently this is on the no-no list and might explain why I’m not invited to many parties.

I am actually interested in people’s eating habits and their efforts to lose weight and stay healthy. Of course, I spoil it by sharing that I think most of the US’s problems would be solved if the entire country turns vegan. It might be that I’ve brought politics back into the conversation, but it doesn’t help my credibility that I’m holding a smoked salmon bagel.

And then there is the subject of money. I’m not sure if the guests at this dinner party have noticed, but we are in the middle of a horrendous recession. People are losing their homes, sacrificing medical needs, and losing their dreams of retirement with honor and respect.

People are hurting and chances are they are in this room. And I want to know so that I can be supportive, so that I don’t make things worse:

– I won’t offer to take your kid to Six Flags, knowing you have to cough up $40 for a ticket.

– I won’t suggest we go to a restaurant for dinner. I’ll invite you round to my house and fry up some sweet ‘n sour tofu. I have a two-buck Chuck that goes well with it.

– I won’t share my accomplishments at work when I know you are unemployed.

– And most importantly, I want to show that I care.

It makes me wonder. Do people really know what is happening if no one is talking. Sure we read newspapers (do we?), watch political TV shows (The Daily Show, anyone?), and peruse blogs. But all we hear about here are statistics.

It might be that 10% are unemployed and 13% don’t have health insurance, but the fact that 90% do work and 83% have health insurance alienates the minority in the room. It makes them ashamed and subconscious. Perhaps they didn’t even come to the party because they couldn’t bear to face the rest of us.

Money influences everything: our health, lifestyle, and the way we perceive each other. Moreover, it influences how we define our own self-worth. We need to smash this barrier of shame. We need for those friends who are hurting to know that we want them at the party because they are good people. They are our friends and family.

 I’m not sure the answer is talking about baseball.

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Alon Shalev is the author of The Accidental Activist and A Gardener’s Tale. He is the Executive Director of the San Francisco Hillel Foundation, a non-profit that provides spiritual and social justice opportunities to Jewish students in the Bay Area. More on Alon Shalev at http://www.alonshalev.com/ and on Twitter (@alonshalevsf).

Tax Mysteries Uncovered! (part 2 of Why Some People Pay More Taxes…)

In part 1 I started to explore how a business owner benefits more than an employee from public roads. Let’s go a little further with this simplified example.

 We’ve already seen that an employee benefits from public roads in that he or she can get to work to earn some money. The business owner gets the same benefit from his trip, plus the benefit of the worker coming to work to do something of value to the business.

 But let’s look at other uses of roads by the business. We have already said that the business in this example is “old-fashioned” in that it actually makes something, in the U.S.A., and without the aid of robots or too much automation. Then the business sells its product to either consumers or retailers. How does the business get its products to buyers? Most likely in trucks.

 These trucks use the same roads that we all drive on and pay for through our taxes. So this use is a benefit for the business and the business should pay its “fair share” for the construction and maintenance of the roads.

 But it’s even bigger than that. Trucks loaded with cargo cause exponentially more damage and simple wear-and-tear on roads than do passenger cars – even big SUVs. Because of this, roads have to be built much thicker and stronger in the first place, but they must also be re-paved, have potholes and cracks fixed, etc. much more often.

 The result is a situation that mirrors the discussion in part 1: both the business owner and the worker use the roads to go to the store to buy things. But the business uses the roads to make a profit. Once again, the imperative is simple: Pay for what you get!

 Okay, we’ve mostly talked about businesses so far. In part 3 I’ll start looking into individual benefits from the things that taxes pay for. Again, this is not to say that some people are “bad” and therefore need to pay more taxes. It’s simply based on the same principle we all observe every day: Want two donuts instead of one? Pay for two. Want a Fat Tire instead of a Coors? Fat Tire is better (6,428 times better, by my calculations) and it costs more – if you want it, you have to pay for it.

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

Tom also posts on thrustblog.blogspot.com

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