Another Writer Complains About Taxes - That They're Too Low!

David North, an 81 year old resident of the state of Virginia, penned an article in the Washington Post in which he contrasts his state tax bill with someone with the same amount of income but who is much younger.

"As it cuts back drastically on services, Virginia is overlooking the foolishly generous income tax break it gives its affluent elderly. My wife and I had a federal adjusted gross income of $92,000, but our state income tax bill came to only $474, about one-half of 1 percent, compared with the $7,529 we paid to the feds.

With a total income of almost $100,000 a year, we pay all of $1.30 a day in state income taxes. But a 40-year-old couple with my income would pay the state $3,716 in taxes, about eight times what my wife and I pay.

I am neither an economist nor a tax-policy specialist, but I do know something about how tax systems work. U.S. taxes are much lower than those in other modern democracies, and Virginia's taxes are much lower than those in most other states. Further, Virginia's tax system, with a marginal tax of only 5.75 percent on income over $17,000, and no tax on estates, is rigged for the rich and against the middle class."

A few items worth noting on Mr. North's comments:

1) It's commendable that someone of his age is productive enough to bring in $92k of income (even if $32k of it comes from Social Security).

2) Although Mr. North complains about the exemption the state of Virginia provides him for his income from Social Security, he should keep in mind that for most people, Social Security payment represent a return of taxes previously paid. Even if in nominal dollars he has now received from Social Security more than he originally paid in, the effects of inflation mean that he more than likely has not been paid back in full in real dollars.

3) His complaint that Virginia's 5.75% marginal tax rate is "rigged for the rich" rings false. Considering the highest federal tax rate on individuals is 35%, putting the total federal plus state marginal tax rate for Virginia residents over 40%, is that combined rate somehow too low? If so, perhaps Mr. North should enlighten us as to what he believes the highest all-in marginal rate should be?

4) Mr. North's comment that "U.S. taxes are much lower than those in other modern democracies" is demonstrably false. The U.S. federal government and its states collect more taxes (whether in the form of income taxes, state taxes, sales taxes, social security, you name it) than ANY other government in the world. Perhaps Mr. North was referring to tax rates.

Although he personally seems to prefer higher tax rates, the reality is that most Americans do not share his thinking. If Mr. North wishes to transfer more of his own personal assets to fund Big Government, perhaps he should take a few moments today to write a check to the bureaucrats in Richmond or Washington DC. However, he should stop insisting that other Americans be required to follow his own personal wishes and pay more in taxes.