Paying Taxes and Feeling Joyous
Paying Taxes and Feeling Joyous
On April 15 in the US, taxes are due for the prior year.
For millions of Americans, this is a dreaded exercise. Complaints range from the forms are too complicated, if taxes are owed there is no savings to pay the taxes, rich people don’t pay taxes because they know how to find loopholes, fear if they make a mistake the IRS will come after them with a vengeance, etc. The list is endless.
Taxes are very misunderstood and a host of myths and legends exist. One of them is the taxman is out to get you. Well, based on personal experience and from conversations with friends I believe that the IRS staff is only trying to do their job.
For example, one friend did not report all of his income. The IRS contacted him and all he had to do was submit an amended tax return. Another friend failed to report the gains on some stocks sold. He was contacted and all he did was submit an amended tax form and all was well. Neither friend paid any fine nor did any jail time. Both incorrect tax forms were seen as genuine mistakes.
Yes, some rich people do find interesting loopholes, but most people pay the taxes required. However, they did utilize the tax code to minimize taxes owed. With regards to rich people and taxes, the top 1% pay close to 24% of all federal taxes, and the top 20% pay close to 65% of all taxes collected by the government. Yes, rich people do pay a lot of taxes. Whereas, the bottom 45% of people pay zero dollars in federal taxes. Some even get money from the government in the form of tax credits.
So, based on the above data the fact you owe taxes puts you in the top 50% of earners in society. To me, this is something to be thankful for. Yes, life is tough, but your income puts you in the top 50% of society in the struggle of life. If you have to pay thousands of dollars this is a clear indication your hard work and good fortune put you in the category of the “rich.” Okay, I know you probably don’t feel rich.
I say hard work and good fortune because even Warren Buffet says a lot of luck was in play in the creation of his billions.
So, instead of bemoaning you have to pay taxes, rejoice and be thankful you are in a financial position to be asked to pay taxes. Yes, a lot of our tax dollars are wasted, but that is a different conversation.
This weekend I will prepare my taxes and I know I will owe thousands in taxes. I am sure I could find some good use for the tax dollars, but I will be thankful for my good fortune and my capacity to earn money. Paying taxes is an indication of my good fortune. I am thankful to be in a situation where I am paying taxes.
For those who have to pay tens of thousands in taxes think for one moment how much of a fortune you have earned or received in one way or another when compare to others.
I prefer to be in the position where I am asked to pay taxes verses in the bottom 50% where I am not earning enough to pay taxes. Life is all about one's perspective.
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Whether one agrees or disagrees with the thoughts and ideas expressed, he hopes they provide a broader foundation for discussion. Dr. Beekie received his bachelor's degree in Business Administration and Organizational Communication from Concordia College, Moorhead, MN, master's degree in Intercultural Communication from North Dakota State University, Fargo, ND, and doctorate in Organization Development from the University of St. Thomas, Minneapolis, MN.
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